At 6:57 a.m. ET, Dow Jones futures edged 0.07% higher, while S&P 500 futures slipped 0.04% and Nasdaq futures traded flat.

The cautious mood comes as markets assess mixed signals from Fed officials. While some policymakers advocate for gradual rate cuts to keep inflation in check, others warn that holding rates too high could hurt the labor market.

“Inflation may be cooling, but tariffs and lingering labor pressures complicate the Fed’s path toward its 2% target,” said Michael Reynolds, vice president of investment strategy at Glenmede.

Fed in Spotlight

Newly appointed Fed Governor Stephen Miran cautioned Monday that excessive tightening could damage jobs growth, underscoring the delicate balance facing policymakers. Powell’s remarks, alongside speeches from Governor Michelle Bowman and Atlanta Fed President Raphael Bostic, will be closely monitored.

Traders are also awaiting S&P Global’s September flash manufacturing PMI for further clues on economic momentum.

Markets Driven By Tech Optimism

September has so far defied its reputation as a weak month for equities. The S&P 500 has risen 3.6%, buoyed by gains in technology shares and renewed optimism in artificial intelligence.

Nvidia, the AI chipmaker, dipped 0.7% in premarket trading after surging to an intraday record on Monday. The company announced a partnership with OpenAI involving up to $100 billion in investment and chip supply for data centers.

Corporate Move

Boeing rose on news of an aircraft deal with Uzbekistan and reports of a potential order from China. Consumer health company Kenvue also recovered from recent losses, while former President Donald Trump’s economic claims continued to face pushback from market analysts.