Futures for the blue-chip benchmark YMZ6, +0.35% climbed 59 points, or 0.3%, to 19,781. If the Dow opens higher and keeps its gain through the session, it will log its seventh consecutive record close. The benchmark on Monday bucked a negative trend across the U.S. stock markets and closed at an all-time high.
“U.S. markets are still celebrating the idea of a pro-business administration coming into the White House, but the accompanying inflationary aspects don’t seem to be fully accounted for. We like to think markets are really efficient, but it’s perhaps at times like this that you realize how fallible an assumption like that can be,” said Tony Cross, market analyst at TopTradr, in emailed comments.
Read: 5 things to know about the Dow’s attempt to rally to 20,000 and beyond
“We really do seem to be off the chart here, and I can’t see what justifies further upside for the Dow, especially on the basis we may see a hawkish statement from the Fed tomorrow,” he added.
Meanwhile, futures for the S&P 500 index ESZ6, +0.29% gained 6.60 points, or 0.3%, to 2,257.00, while those for the Nasdaq-100 index NQZ6, +0.33% added 18.50 points, or 0.4%, to 4,884.75.
Both the S&P 500 index SPX, -0.11% and Nasdaq Composite COMP, -0.59% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting.
Fed meeting: The central bank kicks off its two-day policy-setting meeting on Tuesday and will deliver its rate announcement on Wednesday at 2 p.m. Eastern Time. The bank is widely expected to raise its benchmark rate by 25 basis point, so the big question for traders is how hawkish or dovish the statement will be.