Stock futures showed minimal changes on Sunday as investors geared up to push equities back to record-high levels, following the Federal Reserve's indication of forthcoming rate cuts. With S&P 500 futures slipping 0.1% and Nasdaq 100 futures down by 0.1%, the Dow Jones Industrial Average futures ticked down by 16 points, or 0.04%.

Coming off a strong week, dominated by comments from Fed Chair Jerome Powell about the imminent rate cuts, Wall Street has been eagerly anticipating this move. The anxieties arose following worrisome economic data in early August that triggered a sell-off and concerns among investors that increased borrowing costs could harm the U.S. economy. Fortunately, equities regained momentum and are currently hovering near all-time highs, with the benchmark S&P 500 index finishing on Friday less than 1% away from its record high established in mid-July. This rebound has not been limited to major indices, as the small cap Russell 2000 rallied by 3% following Powell's comments.

David Russell, Global Head of Market Strategy at TradeStation, noted that Powell's remarks have provided a positive backdrop for the market going forward, making it less likely to see a retest of the lows reached earlier this month. However, Powell did not specify the timing or extent of the potential rate cuts. Nevertheless, traders remain unanimous in their forecast for a rate cut at the Federal Reserve's upcoming September policy meeting, according to the CME Group's FedWatch Tool.

Looking ahead, the economic front will see the release of initial jobless claims on Thursday at 8:30 a.m., followed by the July personal consumption expenditures reading on Friday. As investors enter a fresh week of trading, stock futures appear near the flatline, providing reassurance with the anticipation of interest rate cuts. S&P 500 futures gained 0.08%, while Nasdaq 100 futures saw an increase of 0.17%. Meanwhile, futures linked to the Dow Jones Industrial Average advanced by 22 points, or 0.05%.

Market participants will closely monitor economic indicators and upcoming Federal Reserve announcements to assess the impact on equities and the overall economy. The anticipation of rate cuts continues to play a crucial role in shaping market sentiment and investment decisions as investors seek to capitalize on potential record-high levels.