Stock futures are little changed as investors prepare for the S&P 500 to test its June low

US stock futures were little changed on Sunday evening after rising interest rates and foreign currency turmoil pushed major averages near their lowest levels for the year.

Dow Jones Industrial Average futures rose 22 points, or 0.1%. S&P 500 and Nasdaq 100 futures were hovering above the flat line.

Stocks on Friday ended a tough week with the Dow Find a new low during the day this year It closes 486 pips lower. The broad-based S&P 500 index temporarily broke its lowest closing level in June and closed 1.7% lower. The heavy Nasdaq Composite lost 1.8%.

Heading into the last week of trading for September, the Dow and S&P 500 are down about 6% for the month, while the Nasdaq is down 8%. The Dow and S&P are sitting about 1.2% and 1.6%, respectively, above their summer lows. The Nasdaq is 2.9% above its lowest level.

Investors were reacting to the Fed’s commitment to a rate hike plan to help tame inflation. At the conclusion of the FOMC meeting, Bank Chairman Jerome Powell said the central bank could raise interest rates to 4.6% before pulling back. The forecast also shows that the Fed plans to stay aggressive this year, raising interest rates to 4.4% before the end of 2022.

“A lot of traders expected hints about the Federal Reserve pivot at Jackson Hole or on FOMC policy for September, but that never happened,” said Edward Moya, chief market analyst at Oanda. “A hard landing has become the base case scenario for many and that means more economic pain along with a much weaker stock market.”

Bond yields rose after the Federal Reserve decided to raise interest rates by 75 basis points. The two-year and 10-year Treasury rates are at levels not seen in over a decade. Friday, Goldman Sachs Lowered its target at the end of the year For the S&P 500 index to 3600 from 4300.

“How far we go below summer lows is anyone’s guess,” said Oanda’s Moya. “It doesn’t look like any economic data releases or Fed speech will convince markets that a downward turn from this aggressive tightening campaign is going to happen any time soon.”

I look aheadTraders are expecting data on personal consumption expenditures, the Fed’s preferred inflation measure, on Friday. Durable goods and consumer confidence numbers will also be released this week.

A large number of federal speakers are also scheduled to speak — including Federal Reserve Vice Chairman Lyle Brainard, St. Louis Fed President James Bullard, San Francisco Fed President Mary Daly, Federal Reserve Governor Michael Bowman — and President Powell at Various events this week.