Futures Point Higher: A Look at Today’s Market
U.S. stock futures are trending upward this morning as investors await this week’s highly anticipated Federal Reserve interest rate decision. As of 03:36 ET (07:36 GMT), Dow futures rose by 46 points (0.1%), S&P 500 futures gained 8 points (0.1%), and Nasdaq 100 futures climbed 54 points (0.3%).
Yesterday, the S&P 500 closed slightly higher, but tech stocks weighed down the Nasdaq Composite, breaking its five-day winning streak. Notably, Apple (AAPL) dropped 2.8% due to concerns over weaker-than-expected demand for the iPhone 16, impacting chipmakers like Nvidia (NVDA) and Broadcom (AVGO).
Federal Reserve Rate Cut on the Horizon?
The Federal Reserve kicks off a crucial two-day meeting today, which is expected to conclude with a decision on interest rates. While markets are pricing in a cut, speculation centers around whether the reduction will be 25 or 50 basis points. According to CME’s FedWatch Tool, there’s a 67% chance of a 50-basis-point cut, up from even odds earlier. Analysts are debating the potential impact, with former New York Fed President Bill Dudley advocating for a larger cut to bring short-term rates closer to neutral.
Intel’s Big Win with Amazon
In a major development, Intel signed a deal to manufacture custom AI chips for Amazon’s cloud division, boosting shares by 6.4%. Intel’s CEO, Pat Gelsinger, emphasized the partnership’s role in expanding innovation and driving growth for both companies. This win aligns with Intel’s strategy to focus on its foundry business and trim $10 billion in costs amid challenging market conditions.
Microsoft’s Moves: Dividend Increase and Buyback Plan
Microsoft’s board approved a $60 billion share buyback program and raised its quarterly dividend to $0.83 per share, up 10% from the prior quarter. This move comes after strong AI-driven earnings growth in recent quarters, further strengthening shareholder returns.
Oil Prices Climb Amid U.S. Production Disruptions
Oil prices saw a slight uptick today due to ongoing production disruptions in the Gulf of Mexico following Hurricane Francine. Brent crude is up 0.3% at $72.97 per barrel, while U.S. crude futures (WTI) rose 0.4% to $69.32 per barrel. Traders are also awaiting U.S. crude inventory data later today, expecting further declines in stockpiles.
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