U.S. stock futures edged higher on Tuesday, as technicals led gains as investors weighed fresh retail sales data in anticipation of a Federal Reserve meeting.
Dow Jones Industrial Average futures (YM=F) rose about 0.3%, nearing a record-high for the blue-chip index. S&P 500 futures (ES=F) added about 0.4%, while tech-heavy Nasdaq 100 (NQ=F) contracts shed 0.6%.
Stocks are set for gains as odds of a 0.5% Fed rate cut More creepyIts monetary policy decision is just a day away. The central bank’s two-day meeting starting on Tuesday is expected to bring the first easing of rates since early 2020.
Investors weighed data showing retail sales beat Wall Street’s estimates in August, focusing on signs of a slowdown in consumer spending. The reading is the latest data to factor into the central bank’s thinking about choosing a significant rate cut over a quarter-point move.
Read More: Fed projections for 2024: What experts say about the possibility of a rate cut
Right now, the rate-track debate is focused on the prospect of panic-inducing large cut markets. At the same time, some on Wall Street suggest that little action could fuel disappointment and anxiety.
As of Tuesday, traders see 65% odds on a 50 basis point cut in rates, up from 62% a day earlier. The chances of a 25 basis point cut is 35% CME FedWatch tool.
Meanwhile, shares of Intel ( INTC ) took off after its foundry secured Amazon as a multibillion-dollar customer for AI chips. Microsoft’s ( MSFT ) new plan is to buy back up to $60 billion in shares and give its dividend a 10% boost.
