US stock futures rose on Tuesday, with techs leading the advance in the wait for fresh retail sales data and the start of a Federal Reserve meeting pivotal to an interest-rate cut.
Dow Jones Industrial Average futures () moved up roughly 0.3%, coming off a record-high close for the blue-chip index. S&P 500 futures () also added 0.3%, while contracts on the tech-heavy Nasdaq 100 () put on 0.5%.
Stocks are setting up for gains as the odds on a 0.5% Fed rate cut creep higher, with just one day to go before its monetary policy decision. The central bank’s two-day meeting, which begins Tuesday, is prevailingly expected to bring the first easing in rates since early 2020.
Investors are looking to an August reading on retail sales due later for insight into the health of the consumer and economy, the last piece of data that could factor into the Fed’s thinking. A softer-than-expected print could reinforce bets on a substantial rate cut rather than a quarter-point move.
Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut
Right now, the rate-path debate now is focused on the chance that the bigger cut could At the same time, some on Wall Street suggest the smaller move could also disappoint and spark concern.
As of Tuesday, traders see odds of 65% on a 50 basis point reduction in rates, compared with 62% a day ago. The chances of a 25 basis point cut stand at 35%, per the CME FedWatch tool.
Meanwhile, Intel’s (INTC) shares popped after its foundry secured Amazon as a multibillion-dollar customer for AI chips. Also helping revive faith in battered tech stocks was Microsoft’s (MSFT) new plan to buy back up to $60 billion in shares and a 10% boost to its dividend.
