Stock futures opened with a slight decline on Sunday evening as investors prepared for the last trading week of March. Futures linked to the Dow Jones Industrial Average edged lower by 37 points, or 0.1%, while S&P futures and Nasdaq 100 futures experienced losses of nearly 0.1%.

Despite the minor setback in futures, the market is on track for its fifth consecutive month of gains. Last week, major U.S. stock benchmarks reached new all-time closing highs. The S&P 500 saw a gain of approximately 2.3% during the week, while the Dow registered a growth of just under 2%, approaching the 40,000 level. The Nasdaq Composite had a notable jump of around 2.9% over the same period.

These impressive gains were propelled by the Federal Reserve's recent remarks, reinforcing central bankers' commitment to maintaining a rate-cutting timeline for this year. Additionally, investors continued to show enthusiasm for tech stocks, contributing to an AI-powered rally.

Market sentiment remains optimistic, reflecting a persistent bullishness among investors. The latest weekly American Association of Individual Investors Sentiment Survey indicates that overall investor sentiment remains above its historical average.

However, there are some concerns among investors regarding the potential impact of an overextended rally and the possibility of higher interest rates. Analyst Ryan Grabinksi from Strategas Securities noted that investors historically have more to fear from the first rate cut in a cycle than from a pause in tightening.

This week, investors will closely watch the February personal consumption expenditures price index, which serves as the Federal Reserve's preferred inflation gauge. The release of this data, slated for Friday morning, will provide further insight into the path of inflation. Given the Good Friday holiday, the market will respond to the data on the following Monday.

As the shortened trading week begins, stock futures opened in a slightly mixed manner. The Dow Jones Industrial Average futures edged lower by 33 points, representing a 0.1% decline. S&P futures experienced a minimal loss of less than 0.1%, while Nasdaq 100 futures hovered just above flat.

Investors will be closely monitoring market movements this week as they navigate the potential impact of inflation and the ongoing rally.