Stock futures were little changed as investors awaited the Fed's key decision: the live update

Stock futures were little changed on Sunday night as investors awaited the Federal Reserve's highly anticipated policy meeting, during which central bankers are expected to cut rates for the first time since 2020.

S&P 500 futures 0.1% slip, while Futures are tied to the Dow Jones Industrial Average rose 97 points or 0.2%. Nasdaq-100 futures edge lower by 0.4%.

The S&P 500 is less than 1% away from its July record and could hit a new all-time high this week. After a rough start to a historically weak September, all three major US indices ended last week's trading session in the green, S&P 500 and technology-heavy Nasdaq Composite Their best week of 2024 is coming to an end.

The Fed is set to meet on Tuesday and Wednesday and is widely expected to cut interest rates for the first time since they began hiking rates in March 2022. A cut this week would be an important step, as many investors hope the decision could lower borrowing costs for companies and improve overall earnings growth — boosting economic growth.

The overnight lending rate is currently 5.25% to 5.5%. Traders are split on whether the central bank will cut rates by 25 or 50 basis points, according to CME Group's FedWatch tool.

Brian Belsky, chief investment strategist at BMO Capital, said stocks typically post strong gains during cycles where initial rate cuts are able to sustain economic expansion.

“Until something breaks in the economy, U.S. stocks remain firmly in a bull market, but with a remarkably strong one-year performance leading up to this initial rate cut, future gains may be more muted than historical norms, let's see,” he said in a note ahead of Friday. .