Traders work on the New York Stock Exchange floor on September 13, 2024. (Spencer Platt | Getty Images)
Stock futures remained nearly static on Monday evening as Wall Street anticipated crucial retail sales data and the start of the Federal Reserve’s September policy meeting. Intel shares surged roughly 8% in after-hours trading following the company’s announcement to convert its foundry business into a subsidiary. Additionally, the Biden administration granted Intel up to $3 billion through the CHIPS Act.
Futures tied to the S&P 500 and Dow Jones Industrial Average hovered near the flatline, while Nasdaq-100 futures increased by less than 0.1%.
Monday’s trading session was mixed; the Dow climbed over 228 points, or 0.55%, hitting a record high, and the S&P 500 gained 0.13%. Conversely, the Nasdaq Composite fell 0.52%, impacted by declines in Apple and key chip stocks.
Tuesday’s agenda includes retail sales data for August, offering vital insights into U.S. consumer health before the Fed’s rate decision. Economists expect a 0.2% decline, with a 0.2% gain expected when excluding auto sales. These figures could influence the anticipated rate cut.
The market is on edge awaiting the Fed’s rate cut decision, anticipated to boost corporate earnings amid high borrowing costs and inflation. Since March 2022, the Fed has been on an aggressive rate-hiking path. Current market sentiment is divided on the potential size of the cut, with a 67% chance of a 50 basis point reduction, up from 47% on Friday, according to CME Group’s Fed Watch tool.
“Market expectations are split between a 25 basis point and a 50 basis point rate cut, complicated by solid economic activity but a weakening labor market,” noted Seema Shah from Principal Asset Management. She anticipates a more cautious 25 basis point cut and expects further reductions in November and December.
Additionally, industrial and manufacturing production data for August, and September’s National Association of Home Builders Housing Market Index are set to be released.
This turbulent atmosphere underscores the tension as Wall Street awaits decisive economic indicators and Federal Reserve actions.
Original Story https://www.cnbc.com/2024/09/16/stock-market-today-live-updates.html
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