Traders work on the floor of the New York Stock Exchange on September 13, 2024.
Spencer Pratt | Getty Images
Stock futures rose on Tuesday as Wall Street prepared for key retail sales data and the start of the Federal Reserve's September policy meeting.
Futures S&P 500 increased by 0.3%, Nasdaq 100 Futures It rose 0.4%. Dow Jones Industrial Average It increased by 88 points, or 0.2%.
Microsoft The stock rose 2% after the company raised its quarterly dividend by 10.7% to 83 cents a share. The company also authorized a $60 billion share repurchase program.
Intel share Approximately 7% increase The company announced plans to divest its foundry business, sending its shares plummeting in premarket trading. The Biden administration also granted the company up to $3 billion in financial aid through the Semiconductor Act.
Investors will be scrutinizing August retail sales data for one last look at the health of the U.S. consumer ahead of the Fed's interest rate decision on Tuesday. Economists surveyed by Dow Jones expect a 0.2% decline. Excluding autos, they expect a 0.2% increase. The results could influence the outcome of any rate cuts.
Wall Street is awaiting a long-anticipated interest rate cut from the Federal Reserve, which launched its first aggressive rate-hiking campaign in March 2022, that could boost corporate earnings growth amid soaring borrowing costs and high inflation.
Wall Street is expecting a rate cut on Wednesday, but the market is divided on the size of the cut: Traders now see a 67% chance of the central bank cutting rates by 50 basis points, according to CME Group's Fed Watch tool, up from about 47% on Friday.
“Market expectations are split between a 25 and 50 basis point cut, with the decision complicated by conflicting signals that economic activity is strong but the labor market is weakening,” said Seema Shah at Principal Asset Management. “We have rarely seen market expectations so divided and so close to a cut.” [Federal Open Market Committee] Meeting.”
While a 50 basis point cut is not out of the question, the chief global strategist believes the Fed should be more cautious with its rate cuts and cut rates by 25 basis points, with another 25 basis point cuts expected in November and December.
Wall Street ended a mixed session. 30 stocks Dow It rose more than 228 points (0.55%) to close at a record high. S&P 500 It increased by 0.13%. Nasdaq Composite Index It was down 0.52% as Apple and major semiconductor stocks fell.
