Stock futures are flat after Nasdaq and S&P 500 notch fresh records, Fed meeting ahead

U.S. stock futures were steady in overnight trading on Monday after the Nasdaq Composite and S&P 500 registered new record highs ahead of the Federal Reserve's latest monetary policy meeting.

Dow futures fell just 12 points. S&P 500 futures were flat and Nasdaq 100 futures ticked 0.04% lower.

On Monday, S&P 500 gained 0.2% to close at a new record of 4255.15. The Dow Jones Industrial Average, however, fell 85 points.

The Nasdaq Composite was the relative outperformer, gaining 0.8% to close at an all-time high of 14,174.14. Investors are pouring back into growth stocks as bond yields keep falling. The 10-year Treasury rate hit a three-month low last Friday and hovered around 1.5% on Monday.

Bitcoin rose to $40,000 on Monday after Tesla CEO Elon Musk said Sunday that the company will resume bitcoin transactions once it confirms there is reasonable clean energy usage by miners.

The Federal Reserve's two-day policy meeting starts on Tuesday, and it's a focal point for the markets this week. The central bank is not expected to take any action. However, commentary on interest rates, inflation and the economy could drive market moves.

Traders will listen closely for comments on inflation and the Fed's eventual tapering plans.

Billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that this Fed meeting could be the most important in Chairman Jerome Powell's career. Jones also warned that Powell could spark a big sell-off in risk assets if he doesn't do a good job of signaling a taper.

Investors will also be watching for another inflation gauge released on Tuesday. The Producer Price Index — which measure the prices paid to producers as opposed to prices on the consumer level — is expected to rise 0.5% in May, according to Dow Jones estimates. The core PPI — which excludes volatile items like foods, energy and trade services — is also estimated to increase 0.5%.

May's retail sales data are also slated for release at 8:30 a.m. ET. Economists polled by Dow Jones are expecting a drop of 0.6% for last month. Excluding autos, economists expect May's retail sales rose 0.5%. Retail sales in April were unchanged as the boost from stimulus checks faded.

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