US stock futures edged up slightly on Monday evening as investors continue to monitor the development of the Russia-Ukraine conflict and prepare for a key policy decision by the Federal Reserve.
Dow Jones Industrial Average futures rose 52 points, or 0.16%. S&P 500 and Nasdaq
Futures on the 100 were up 0.21% and 0.30%, respectively.
Earlier in the day, the S&P 500 was down 0.7%, while the high-tech Nasdaq Composite was down 2%. Both ended their seventh negative session in the past eight. Meanwhile, the Dow Jones Industrial Average was flat after gaining as much as 450 points earlier in the day.
Investors have been keeping an eye on the ongoing conflict between Russia and Ukraine as the two countries launched a new round of ceasefire talks on Monday. A Ukrainian official said the country is demanding the immediate withdrawal of Russian troops from the country.
Meanwhile, U.S. and Chinese officials met on Monday to discuss a range of issues facing their bilateral relationship, including Russia’s ongoing war in Ukraine.
The financial impact of tough Russian sanctions will become more visible in the coming days ahead of the scheduled sovereign bond payment.
“The market is nervous,” said Gene Goldman, chief investment officer at Cetera Investment Management. “So much anxiety about the Russian invasion, inflation and the Fed. With growing concerns about a bear market, investors have been cautious.”
However, he said he does not feel a bear market, stating, “A pullback/correction becomes a bear market if a recession is likely. Fundamental data (labour, construction spending, PMI, etc.) all support a solid economic base.”
Investors are expecting a significant Fed rate hike after the central bank starts a two-day meeting on Tuesday that will signal monetary tightening. The central bank is expected to raise its target federal funds rate by a quarter of a percentage point from zero.
There will also be adjustments to the economic outlook, forecasts for the future path of rates, and likely discussion of when the Fed might start cutting its bond portfolios.