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Stock futures were flat Monday evening as Wall Street readied for key retail sales data and the start of the Federal Reserve's September policy meeting. shares popped 8% in extended trading after the company said it plans to . Earlier in the day, the Biden administration up to $3 billion in funding through the Chips Act.
Futures tied to the hovered near the flatline, along with futures linked to the . added 0.1%.
Wall Street is coming off a mixed trading session. The 30-stock rose more than 228 points, or 0.55%, to close at a record high, while the added 0.
13%. The lost 0.52% as Apple and prominent chip stocks declined.
Investors on Tuesday will parse retail sales data for August for one final glimpse into the health of the U.S. consumer ahead of the Fed rate decision.
Economists polled by Dow Jones are bracing for a 0.2% decline. Excluding autos, they see a 0.
2% gain. The results could affect the rate cut outcome. Wall Street is on standby for the Fed's long-anticipated rate cut, a move that could help boost earnings growth for companies following a backdrop of steep borrowing costs and high inflation.
The Fed first embarked on its aggressive hiking campaign in March 2022. While Wall Street expects a cut Wednesday, the market is divided on the size of the potential reduction. Traders are currently pricing in a 67% chance that the central bank eases rates by 50 basis points, according to CME Group's Fed Watch tool.
That's up from a roughly 47% chance Friday. "Market expectations are split between a 25 basis point and a 50 basis point rate cut, as the decision is complicated by conflicting signals of solid economic activity but a weakening labor market," said Principal Asset Management's Seema Shah. "Rarely have market expectations been so torn, so close to a FOMC meeting.
" While a 50 basis point cut isn't out of the question, the chief global strategist thinks that the Fed should take a more cautious approach to cutting and ease rates by 25 basis points. She is forecasting additional 25 basis point cuts in November and December. In other economic news, industrial production and manufacturing production data is due out for August, along with September's National Association of Home Builders Housing Market Index.
shares rallied more than 8% in overnight trading after the chipmaker said it will as the company looks to turnaround its business. CEO Pat Gelsinger said the move would enable Intel's foundry business to "evaluate independent sources of funding." The company is also considering spinning off the business, CNBC reported, citing a person familiar with the matter.
The Biden Administration also in funding through the CHIPS Act on Monday. Shares have plummeted more than 58% since the start of 2024. Stock futures opened little changed Monday evening.
Futures tied to the edged down 0.05%, while hovered near the flatline. Futures linked to the lost 14 points.
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