In a night of relatively flat trading, U.S. stock futures showed marginal movements following a successful day for the S&P 500 and the Nasdaq Composite, both extending their winning streaks, the longest so far in 2024. The Dow Jones Industrial Average futures experienced a slight dip of 8 points, representing a 0.02% decrease. Conversely, futures tied to the S&P 500 saw a slight increase, while Nasdaq 100 futures edged up by 0.08%.

This extended trading session mirrors the positive performance of the major averages earlier in the day, with the S&P 500 gaining almost 1% and the Nasdaq Composite surging by 1.4%. These gains mark the eighth consecutive positive session for both indexes, something the S&P 500 has not achieved since November 2023, and the Nasdaq Composite since December 2023.

This upward momentum in the markets signifies a revival amidst a notable decline in market volatility compared to the beginning of the month. The CBOE Volatility Index, known as the VIX, has fallen to a level of 14.7 after reaching its peak at 65 on August 5th. Encouraging retail sales data and a subdued inflation report released last week have helped alleviate concerns among investors regarding the state of the economy.

As investors brace themselves for the Federal Reserve's annual Jackson Hole Economic Symposium later in the week, all eyes are on Chair Jerome Powell's scheduled remarks on Friday morning. Wall Street is eagerly anticipating insights into the central bank's plans for rate cuts during its upcoming September meeting. Analysts hope the Fed will demonstrate its ability to stay ahead of the curve without being overly aggressive in removing stimulus measures before the economy is fully stabilized.

The key question for investors is not just the timing but also the magnitude of the rate cuts. Fed futures funds pricing indicates a 77.5% likelihood that central bank policymakers will reduce rates by 25 basis points in September, according to the CME Group FedWatch Tool. Additionally, the release of the minutes from the Fed's most recent meeting on Wednesday will provide further insights into the central bank's intentions.

In a sign of a broader rally, three sectors of the S&P 500 achieved record closes on Monday, specifically financials, health care, and consumer staples. Noteworthy gainers within the financial sector include Capital One and Synchrony, both of which experienced over 2% jumps. In the health care sector, Moderna and Dexcom contributed to its advance with gains of 3.6% and 4%, respectively. Meanwhile, potato products producer Lamb Weston saw an increase of over 3% in the consumer staples sector, and Clorox gained 2.6%.

The optimism spread across all 11 sectors of the S&P 500, with the information technology sector leading the way with a 1.44% increase.

In other market news, Palo Alto Networks saw a 2.7% rise in shares after the company's forward guidance surpassed expectations. The cybersecurity company provided a fiscal first-quarter earnings per share range of $1.47 to $1.49, beating the estimated $1.43 per share predicted by analysts. Additionally, the revenue guidance projected a range of $2.1 billion to $2.13 billion, surpassing the $2.1 billion forecast.

Palo Alto Networks also demonstrated strong performance in the fiscal fourth quarter, beating expectations on both the top and bottom lines. Furthermore, the management announced a $500 million boost to its buyback program, further boosting investor confidence in the company.

As U.S. stock futures trade near the flatline, with S&P 500 futures showing marginal gains and Nasdaq 100 futures edging up by 0.1%, investors eagerly await further market developments and the outcome of the Federal Reserve's upcoming decisions.