Today's Stock Market Update: US Futures Maintain Gains Amid Rate-Cut Speculations

US stock futures held steady on Tuesday, with the possibility of an eighth consecutive weekly win still in sight. Despite cautionary warnings that expectations for interest-rate cuts may be excessive, investors remain optimistic.

Futures for the Dow Jones Industrial Average (^DJI), the S&P 500 (^GSPC), and the Nasdaq 100 (^NDX) lingered just above the flatline. Monday saw marginal gains in the stock gauges, with the Dow securing another record close.

Recent enthusiasm in the stock market has waned slightly as Federal Reserve officials attempt to temper expectations for an imminent rate cut in March. They emphasized that it's premature to assume the central bank has concluded its rate-hiking cycle and affirmed that future decisions will be data-driven.

In contrast, the Bank of Japan opted to maintain interest rates below zero on Tuesday, providing no indications of an exit from negative levels.

Despite these cautionary signals, US investors seem to overlook them, at least for now. The upcoming update on the Personal Consumption Expenditures price index, a key inflation measure for the Fed, on Friday may influence the debate over the timing and pace of potential rate cuts.

Additionally, attention is focused on oil prices as more companies, following BP's lead, avoid transits through the Red Sea after recent shipping attacks. West Texas Intermediate (CL=F) and Brent crude futures (BZ=F) traded near the flatline, at approximately $72 and $78 a barrel, respectively.

Setting Records:

• The Dow Jones Industrial Average (^DJI) gained 0.86 points on Monday, securing another record close.

• The S&P 500's (^GSPC) Monday close brought the index within 60 points of its record close of 4,796.56 on Jan. 3, 2022.

Key Events Today:

• Housing starts data at 9:00 a.m. ET.

• Earnings from FedEx (FDX) expected after the closing bell.

Also Read: Wall Street Eyes Positive Start as Investors Anticipate Key Economic Data and Fed's Influence