U.S. Stock Futures Edge Higher as Markets Await Fed's Rate Decision

US stock index futures muted with Fed, rate cut on tap By Investing.com

Investing.com-- U.S. stock index futures moved little in evening deals on Tuesday as investors hunkered down before the conclusion of a Federal Reserve meeting that is likely to result in an interest rate cut. Futures were mildly positive following a similar trend on Wall Street, although U.S. stock indexes relinquished early gains and ended below record highs hit during the session. S&P 500 Futures rose 0.1% to 5,704.50 points, while Nasdaq 100 Futures rose 0.1% to 19,698.0 points by 19:38 ET (23:38 GMT). Dow Jones Futures rose 0.1% to 42,071.0 points. The Fed is widely expected to enact its first interest rate cut in more than four years at the conclusion of a two-day meeting on Wednesday. Markets were largely split over a 25 or 50 basis point reduction, although recent indicators showed traders pricing in a greater chance for a bigger cut. CME Fedwatch showed traders pricing in a 64% chance for a 50 bps cut and a 36% chance for a 25 bps cut. The breadth of Wednesday's cut is likely to set expectations for how the Fed plans to carry out an easing cycle over the coming months. Markets see the Fed cutting rates by at least 100 bps by end-2024. But recent economic data somewhat complicated the Fed's plans to cut rates. Inflation read stronger-than-expected for August, as did retail sales data- suggesting that the U.S. economy remained resilient, and lessening the need for immediate support. But the labor market was also seen cooling rapidly, which could still elicit a deep rate cut and dovish outlook from the Fed. Wall Street indexes relinquished early gains to end flat on Tuesday, although they did briefly hit record highs. The S&P 500 closed flat at 5,634.58 points, while the NASDAQ Composite rose 0.2% to 17,626.95 points. The Dow Jones Industrial Average ended marginally lower at 41,606.18 points. The S&P 500 and the Dow both briefly hit record highs. The Nasdaq remained well below recent peaks following an extended selldown in technology stocks over the past month. Among major aftermarket movers, United States Steel Corporation (NYSE:X) rose over 3% after Bloomberg reported that Nippon Steel had won an extension in the review of its $14.1 billion approach for the U.S. steelmaker. A decision is now likely to be made only after the 2024 elections in November. Microsoft Corporation (NASDAQ:MSFT) and BlackRock Inc (NYSE:BLK) rose slightly after they announced a $30 billion fund for investment in artificial intelligence infrastructure.

Futures inch up ahead of economic data, Fed's rate-cut decision

U.S. stock index futures edged higher as investors awaited a batch of economic data and clung to hopes the Federal Reserve would deliver a supersized interest-rate cut at its monetary policy meeting, which starts on Tuesday. After a choppy start to the week, the S&P 500 ended its sixth straight session higher and near a record high on Monday, helped by Financials and Energy stocks. The Dow also closed at a record high. However, the Nasdaq ended the session lower as investors rotated out of tech stocks, which have led much of this year's rally. Microsoft rose nearly 2.0% in premarket trading on the day after the AI-frontrunner's board approved a new $60-billion share buyback program and hiked its quarterly dividend by 10%. Among growth stocks, Alphabet and Tesla added 0.63% and 0.57%, respectively, while Nvidia inched up 0.30%. The yield on two-year Treasury bonds hovered near two-year lows. At 05:35 a.m. ET, Dow E-minis were up 84 points, or 0.20%, S&P 500 E-minis were up 17.75 points, or 0.31% and Nasdaq 100 E-minis were up 99 points, or 0.51%. In economic data, reports on industrial production and retail sales for August, expected later in the day, could influence investor expectations on the size of the central bank's first interest-rate cut this year. Fed officials are slated to kickstart a two-day meeting and traders are betting on a 67% probability the world's most influential central bank will decide to lower borrowing costs by a bigger 50 basis points, according to the CME Group's FedWatch Tool. Odds favoring a smaller 25 bps reduction have slipped to 33% from 66% a week earlier, as investors focused on remarks from a former policymaker supporting an outsized move and signs of a cooling labor market, among other indicators. However, Mohit Kumar, chief Europe economist at Jefferies, said in a note that a "'safer' approach for (Fed Chair Jerome) Powell would be to cut by 25bp", but keep the side door open for a 50 bps cut at later meetings. "Proximity of (U.S.) elections also imply that it would be a more politically neutral stance." September has historically been weak for U.S. equities, with the benchmark S&P 500 down about 1.20% for the month on an average since 1928. The index has lost about 0.30% so far this September. Still, a survey of BofA fund managers showed global investor sentiment improved in September 2024 for the first time since June on optimism around a soft landing and rate cuts by the U.S. Federal Reserve. Among other movers, Intel jumped 7.0% after signing up Amazon.com's cloud services unit as a customer to make custom artificial-intelligence chips. Viasat dropped 5.0% after brokerage J.P.Morgan downgraded it to "neutral" from "overweight". (Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai)

US Stocks: S&P 500 ends little changed as early gains fade before Fed decision

NEW YORK: U.S. stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years. The benchmark S&P 500 index touched 5,670.81 earlier in the session, after fresh economic data eased worries of a sharp slowdown in the U.S. economy. The latest report from the U.S. Commerce Department showed retail sales rose unexpectedly in August, after a decline in auto dealership receipts was offset by strength in online purchases, suggesting the economy was on solid footing through most of the third quarter. "Expectations were pretty well entrenched before calling into today's economic data and what they showed was generally a growth environment, but a relatively slow-growth environment," said Russell Price, chief economist at Ameriprise Financial Services in Troy, Michigan. Price said the size of the cut could either stoke inflation fears or increase worries the Fed is moving too slowly to avoid a recession. "What you're seeing in this afternoon's trading is the way we pulled off of the all-time high ... because tomorrow somebody's going to be disappointed," he said. The Dow Jones Industrial Average fell 15.90 points, or 0.04%, to 41,606.18, the S&P 500 gained 1.49 points, or 0.03%, to 5,634.58 and the Nasdaq Composite gained 35.93 points, or 0.20%, to 17,628.06. Markets are pricing in a 65% chance the Fed will cut borrowing costs by 50 basis points at the conclusion of its two-day meeting on Wednesday, according to the CME's FedWatch Tool. Market expectations on the cut's size have been volatile in recent days, with only a 34% chance of a 50-bps cut priced in as of last week. Microsoft, up 0.88%, was the biggest lift to the S&P 500, as shares rose after the AI frontrunner's board approved a new $60-billion share-buyback program and hiked its quarterly dividend by 10%. The blue-chip Dow hit a record intraday high for a second-straight day. The Russell 2000 index tracking small caps, which investors view as likely to benefit from a lower rate environment, outperformed the three major indexes, climbing 0.74% on the session. Energy, up 1.41%, was the best-performing of the 11 major S&P sectors, buoyed by a climb in crude prices, while healthcare was the worst-performing with a decline of 1.01%. Among other movers, Intel gained 2.68% after signing Amazon.com's cloud-services unit as a customer to make custom artificial-intelligence chips. Amazon.com shares advanced 1.08%. Advancing issues outnumbered decliners by a 1.55-to-1 ratio on the NYSE and on the Nasdaq, advancing issues outnumbered decliners by a 1.25-to-1 ratio. The S&P 500 posted 48 new 52-week highs and no new lows while the Nasdaq Composite recorded 147 new highs and 68 new lows. Volume on U.S. exchanges was 10.23 billion shares, compared with the 10.74-billion average for the full session over the last 20 trading days. (Reporting by Chuck Mikolajczak; Editing by Rod Nickel)

Futures inch up ahead of economic data, Fed's rate-cut decision

Sept 17 (Reuters) - U.S. stock index futures edged higher as investors awaited a batch of economic data and clung to hopes the Federal Reserve would deliver a supersized interest-rate cut at its monetary policy meeting, which starts on Tuesday. After a choppy start to the week, the S&P 500 (.SPX), opens new tab ended its sixth straight session higher and near a record high on Monday, helped by Financials (.SPSY), opens new tab and Energy (.SPNY), opens new tab stocks. Advertisement · Scroll to continue The Dow (.DJI), opens new tab also closed at a record high. However, the Nasdaq (.IXIC), opens new tab ended the session lower as investors rotated out of tech stocks (.SPLRCT), opens new tab, which have led much of this year's rally. Microsoft (MSFT.O), opens new tab rose nearly 2.0% in premarket trading on the day after the AI-frontrunner's board approved a new $60-billion share buyback program and hiked its quarterly dividend by 10%. Among growth stocks, Alphabet (GOOGL.O), opens new tab and Tesla (TSLA.O), opens new tab added 0.63% and 0.57%, respectively, while Nvidia (NVDA.O), opens new tab inched up 0.30%. The yield on two-year Treasury bonds hovered near two-year lows. Advertisement · Scroll to continue At 05:35 a.m. ET, Dow E-minis were up 84 points, or 0.20%, S&P 500 E-minis were up 17.75 points, or 0.31% and Nasdaq 100 E-minis were up 99 points, or 0.51%. In economic data, reports on industrial production and retail sales for August, expected later in the day, could influence investor expectations on the size of the central bank's first interest-rate cut this year. Fed officials are slated to kickstart a two-day meeting and traders are betting on a 67% probability the world's most influential central bank will decide to lower borrowing costs by a bigger 50 basis points, according to the CME Group's FedWatch Tool. Odds favoring a smaller 25 bps reduction have slipped to 33% from 66% a week earlier, as investors focused on remarks from a former policymaker supporting an outsized move and signs of a cooling labor market, among other indicators. However, Mohit Kumar, chief Europe economist at Jefferies, said in a note that a "'safer' approach for (Fed Chair Jerome) Powell would be to cut by 25bp", but keep the side door open for a 50 bps cut at later meetings. "Proximity of (U.S.) elections also imply that it would be a more politically neutral stance." September has historically been weak for U.S. equities, with the benchmark S&P 500 down about 1.20% for the month on an average since 1928. The index has lost about 0.30% so far this September. Still, a survey of BofA fund managers showed global investor sentiment improved in September 2024 for the first time since June on optimism around a soft landing and rate cuts by the U.S. Federal Reserve. Among other movers, Intel (INTC.O), opens new tab jumped 7.0% after signing up Amazon.com's (AMZN.O), opens new tab cloud services unit as a customer to make custom artificial-intelligence chips. Viasat (VSAT.O), opens new tab dropped 5.0% after brokerage J.P.Morgan downgraded it to "neutral" from "overweight". Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai Our Standards: The Thomson Reuters Trust Principles., opens new tab

Futures inch up ahead of economic data, Fed's rate-cut decision

(Reuters) - U.S. stock index futures edged higher as investors awaited a batch of economic data and clung to hopes the Federal Reserve would deliver a supersized interest-rate cut at its monetary policy meeting, which starts on Tuesday. After a choppy start to the week, the S&P 500 ended its sixth straight session higher and near a record high on Monday, helped by Financials and Energy stocks. The Dow also closed at a record high. However, the Nasdaq ended the session lower as investors rotated out of tech stocks, which have led much of this year's rally. Microsoft rose nearly 2.0% in premarket trading on the day after the AI-frontrunner's board approved a new $60-billion share buyback program and hiked its quarterly dividend by 10%. Among growth stocks, Alphabet and Tesla added 0.63% and 0.57%, respectively, while Nvidia inched up 0.30%. The yield on two-year Treasury bonds hovered near two-year lows. [US/] At 05:35 a.m. ET, Dow E-minis were up 84 points, or 0.20%, S&P 500 E-minis were up 17.75 points, or 0.31% and Nasdaq 100 E-minis were up 99 points, or 0.51%. In economic data, reports on industrial production and retail sales for August, expected later in the day, could influence investor expectations on the size of the central bank's first interest-rate cut this year. Fed officials are slated to kickstart a two-day meeting and traders are betting on a 67% probability the world's most influential central bank will decide to lower borrowing costs by a bigger 50 basis points, according to the CME Group's FedWatch Tool. Odds favoring a smaller 25 bps reduction have slipped to 33% from 66% a week earlier, as investors focused on remarks from a former policymaker supporting an outsized move and signs of a cooling labor market, among other indicators. However, Mohit Kumar, chief Europe economist at Jefferies, said in a note that a "'safer' approach for (Fed Chair Jerome) Powell would be to cut by 25bp", but keep the side door open for a 50 bps cut at later meetings. "Proximity of (U.S.) elections also imply that it would be a more politically neutral stance." September has historically been weak for U.S. equities, with the benchmark S&P 500 down about 1.20% for the month on an average since 1928. The index has lost about 0.30% so far this September. Still, a survey of BofA fund managers showed global investor sentiment improved in September 2024 for the first time since June on optimism around a soft landing and rate cuts by the U.S. Federal Reserve. Among other movers, Intel jumped 7.0% after signing up Amazon.com's cloud services unit as a customer to make custom artificial-intelligence chips. Viasat dropped 5.0% after brokerage J.P.Morgan downgraded it to "neutral" from "overweight". (Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai)

Futures rise with economic data, Fed's rate-cut decision on tap

U.S. stock index futures inched higher on Tuesday as investors awaited a clutch of economic reports and clung to hopes of a half-percentage-point rate cut at the Federal Reserve's monetary policy meeting, which starts later in the day. The S&P 500 ended its sixth straight session higher and near a record high on Monday, helped by Financials and Energy stocks. The Dow also closed at a record high. However, the Nasdaq ended the session lower as investors rotated away from tech stocks, which have led much of this year's rally. Microsoft rose 1.60% in premarket trading on the day after the AI-frontrunner's board approved a new $60-billion share buyback program and hiked its quarterly dividend by 10%. Among growth stocks, Alphabet and Meta added 0.50% and 0.36%, respectively, while Nvidia inched up 0.81%. The yield on two-year Treasury bonds hovered near levels last seen over a year ago. At 07:09 a.m. ET, Dow E-minis were up 85 points, or 0.20%, S&P 500 E-minis were up 15.25 points, or 0.27% and Nasdaq 100 E-minis were up 87 points, or 0.45%. Reports on industrial production and retail sales for August, expected through the day, are among the last datasets before the Fed's highly anticipated two-day meeting. Traders are betting on a 65% probability the world's most influential central bank will decide to lower borrowing costs by a bigger 50 basis points, according to the CME Group's FedWatch Tool. Odds favoring a smaller 25 bps reduction have slipped to 35% from 66% a week earlier, as investors focused on remarks from a former policymaker supporting an outsized move and signs of a cooling labor market, among other indicators. Starting with a 50-basis-point cut accompanied by a calm, cautious message could give the Fed a headstart without spooking the markets, Gabriele Foà, portfolio manager at Algebris Investments, said in a note. "Starting with 25 basis points requires a more dovish message to satisfy market pricing for the remainder of the year," he said. September has historically been weak for U.S. equities, with the benchmark S&P 500 down about 1.20% for the month on an average since 1928. The index has lost about 0.30% so far this September. Still, a survey of BofA fund managers showed global investor sentiment improved in September 2024 for the first time since June on optimism around a soft landing and rate cuts by the U.S. Federal Reserve. Among other movers, Intel jumped 7.0% after signing up Amazon.com's cloud services unit as a customer to make custom artificial-intelligence chips. Viasat dropped 4.2% after brokerage J.P.Morgan downgraded it to "neutral" from "overweight". Hewlett Packard Enterprise gained 3.4% after BofA Global Research upgraded the server maker to "buy" from "neutral". SolarEdge fell 6.6% after Jefferies downgraded the solar inverter maker to "underperform" from "hold" and slashed its price target to the lowest on Wall Street. (Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai)

S&P 500 ends little changed as early gains fade before Fed decision

U.S. stocks closed nearly unchanged on Tuesday after earlier gains, with the S&P 500 and Dow hitting record highs. Investors are anticipating the first Federal Reserve rate cut in over four years. Economic data showed retail sales rose unexpectedly in August, indicating a stable economy through most of the third quarter.U.S. stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years. The benchmark S&P 500 index touched 5,670.81 earlier in the session, after fresh economic data eased worries of a sharp slowdown in the U.S. economy. The latest report from the U.S. Commerce Department showed retail sales rose unexpectedly in August, after a decline in auto dealership receipts was offset by strength in online purchases, suggesting the economy was on solid footing through most of the third quarter. "Expectations were pretty well entrenched before calling into today's economic data and what they showed was generally a growth environment, but a relatively slow-growth environment," said Russell Price, chief economist at Ameriprise Financial Services in Troy, Michigan. Price said the size of the cut could either stoke inflation fears or increase worries the Fed is moving too slowly to avoid a recession. "What you're seeing in this afternoon's trading is the way we pulled off of the all-time high ... because tomorrow somebody's going to be disappointed," he said. The Dow Jones Industrial Average fell 15.90 points, or 0.04%, to 41,606.18, the S&P 500 gained 1.49 points, or 0.03%, to 5,634.58 and the Nasdaq Composite gained 35.93 points, or 0.20%, to 17,628.06. Markets are pricing in a 65% chance the Fed will cut borrowing costs by 50 basis points at the conclusion of its two-day meeting on Wednesday, according to the CME's FedWatch Tool. Market expectations on the cut's size have been volatile in recent days, with only a 34% chance of a 50-bps cut priced in as of last week. Microsoft, up 0.88%, was the biggest lift to the S&P 500, as shares rose after the AI frontrunner's board approved a new $60-billion share-buyback program and hiked its quarterly dividend by 10%. The blue-chip Dow hit a record intraday high for a second-straight day. The Russell 2000 index tracking small caps, which investors view as likely to benefit from a lower rate environment, outperformed the three major indexes, climbing 0.74% on the session. Energy, up 1.41%, was the best-performing of the 11 major S&P sectors, buoyed by a climb in crude prices, while healthcare was the worst-performing with a decline of 1.01%. Among other movers, Intel gained 2.68% after signing Amazon.com's cloud-services unit as a customer to make custom artificial-intelligence chips. Amazon.com shares advanced 1.08%. Advancing issues outnumbered decliners by a 1.55-to-1 ratio on the NYSE and on the Nasdaq, advancing issues outnumbered decliners by a 1.25-to-1 ratio. The S&P 500 posted 48 new 52-week highs and no new lows while the Nasdaq Composite recorded 147 new highs and 68 new lows. Volume on U.S. exchanges was 10.23 billion shares, compared with the 10.74-billion average for the full session over the last 20 trading days.

U.S. stocks end flat ahead of Fed rate-cut decision

STORY: U.S. stocks closed nearly unchanged on Tuesday as investors braced for the Federal Reserve interest-rate decision on Wednesday. The Dow and S&P 500 ended essentially flat, while the Nasdaq added two-tenths of a percent. The S&P 500 touched a record high earlier in the session, after an unexpected rise in August retail sales eased worries of a sharp economic slowdown. Still, markets were pricing in a more than 60% chance that the Fed will cut borrowing costs by 50 basis points at the end of its two-day meeting on Wednesday, according to the CME's FedWatch Tool. That's a shift from just last week, when most traders were betting on a smaller 25-basis-point cut. George Cipolloni is portfolio manager at Penn Mutual Asset Management. "I think the reason why stocks are flat today is exactly because of that, that the Fed is going to make a huge announcement and people aren't sure what to do right now. Again, there's a ton of uncertainty around this decision [on an interest rate cut]. And so longer term, I, personally, as an investor, don't really think it matters whether it's 25 or 50 [basis point rate cut]. But in the short term, I definitely think we are set up to see some volatility again if the market's disappointed or not, tomorrow." Stocks on the move included Intel, which gained 2.7% after signing Amazon's cloud-services unit as a customer to make custom AI chips. Amazon shares added one percent. Sticking with AI, shares of semiconductor powerhouse Nvidia shed one percent. And shares of Microsoft gained after the tech giant's board approved a new $60-billion share-buyback program and hiked its quarterly dividend by 10%.

Nasdaq, S&P 500 Futures Firm Up Ahead Of Retail Sales Data - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)

Given the market has factored in a 50 bps cut Wednesday, it remains to be see where it would head in the event of a smaller reduction. U.S. stocks are priming for a positive start on Tuesday ahead of the release of the key August retail sales report. Traders could throng the tech space as they seek to take advantage of the recent pullback. The market and experts are divided over the magnitude of a rate cut, but a 25 basis-point cut could trigger an initial negative reaction. That said, most believe that the state of the labor market and economy could take preeminence over the rate trajectory, going forward. The August retail sales data could be on traders' radar on Tuesday. Fund manager Louis Navellier said a disappointing report could tilt the scales toward a bigger cut on Wednesday. Wharton professor and Wisdom Tree Senior Economist Jeremy Siegel said he would like the Fed to move quickly. But so far, the market is comfortable with the Fed funds rate reaching the three handle by the middle of next year, he added. In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE: SPY added 0.38% to $564.99 and the Invesco QQQ ETF (NASDAQ: QQQ) gained 0.58% to $476, according to Benzinga Pro data. Cues From Last Session: Wall Street closed Tuesday's session on a mixed note, with Apple, Inc. AAPL leading the tech-heavy Nasdaq Composite lower, while the S&P 500 and the Dow Industrials closed in the green. The positive close by the broader gauge took the index's winning streak to six sessions, with better-than-expected regional manufacturing data giving the thrust on a day when it traded below the unchanged line for much of the session. The S&P 500 Index is now a step closer to its all-time closing high of 5,667.20 reached on July 16. Energy, financials, material and utility stocks gained ground, while IT stocks came under significant selling pressure. Insights From Analysts: Despite market expectation for a 50 basis-point cut, Morgan Stanley analyst Seth Carpenter said he expects a more modest 0.25% reduction. The economist expects the FOMC statement to acknowledge further progress on inflation and risks to the labor market. The dot-plot chart, which is part of the Summary of Economic Projections, will show that the number of cuts this year will be three instead of the previously suggested one. Chairman Jerome Powell may not commit to a cadence for cuts but suggest future rate moves will be data-dependent, the economist said. In all, Carpenter anticipates three 25 basis-point reductions this year. Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson believes that the labor/growth data will be more important to how stocks ultimately trade over the next three to six months. If the labor/growth data strengthen from here, a series of 25 basis-point rate cuts into the middle of next year can further support valuations in a "late cycle" context, he said. But he warned that the market can trade with a risk-off tone if the labor data weakens from here, regardless of whether the Fed's first move is 25 or 50 basis points. The best-case scenario for equities this week is a 50 basis-point cut without triggering either growth concerns or any remnants of the yen carry trade unwind, the strategist said, adding that defensives and large-caps tend to outperform cyclicals and small-caps, respectively, both before and after the first cut. See Also: How To Trade Futures Upcoming Economic Data: The Commerce Department is scheduled to release its August retail sales report at 8:30 a.m. EDT. Economists, on average, estimate a 0.2% month-over-month drop in retail sales, reversing some of the 1% gain in July. Retail sales, excluding autos, may have risen 0.2%, slower than July's 0.4% growth. The Federal Reserve's industrial production report, due at 9:15 a.m. EDT, is widely expected to show a 0.2% month-over-month increase for August following a 0.6% drop in July. The Commerce Department will release its business inventories report at 10 a.m. EDT. The consensus estimate calls for a steady pace of 0.2% month-over-month growth for July. The National Association of Home Builders housing market index for September is expected to come in at 40, up from 39 in July. The metric, which measures homebuilders' confidence, is scheduled to be released at 10 a.m. EDT. The Treasury is set to auction 20-year bonds at 1 p.m. EDT. Stocks In Focus: Intel Corp. INTC rose over 6% in premarket trading after the company announced an agreement to supply custom artificial intelligence chips to Amazon, Inc.'s AMZN AWS. Viasat Inc. VSAT fell over 5.60%, reacting to a negative analyst action. Microsoft Corporation MSFT climbed over 1.50% after the company announced a $60 billion stock buyback plan and a 10% dividend hike. Commodities, Bonds And Global Equity Markets: Crude oil and gold futures pulled back after Monday's strong gains, with the latter holding above the $2,600 mark despite the modest decline, and the benchmark 10-year Treasury note edged down slightly 3.619% ahead of Wednesday's Fed decision. Bitcoin BTC/USD climbed past the $59K mark. The global markets turned higher in anticipation of a Fed rate cut, with most major markets in Asia ending higher for the day. The Japanese market, which reopened after Monday's public holiday, retreated amid the yen's strength, and the New Zealand market extended its post-central bank meeting losses. The Chinese and South Korean markets remained closed for public holidays. European stocks were solidly higher in early trading. Read Next: Ahead Of FOMC Meeting Paul Krugman Says Fed Rates Will Be Elevated Even With 50 Bps Cut: 'Argument For Incrementalism Is Very Weak' Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

Wall St rises ahead of key Fed decision; S&P 500 nears record high

Wall Street's main indexes rose on Tuesday, with the benchmark S&P 500 close to its intraday record high, as investors awaited a crucial Federal Reserve policy decision and fresh economic data allayed worries of a sharp slowdown in the U.S. economy. A Commerce Department report showed retail sales rose unexpectedly in August, as a decline in receipts at auto dealerships was offset by strength in online purchases, suggesting the economy was on solid footing through much of the third quarter. Rate-sensitive growth stocks such as Alphabet and Tesla added 1.0% and 1.90%, while Nvidia edged up 0.44%, pushing the broader chips index higher 0.60%. Microsoft boosted the S&P 500 with a 2.3% rise on the day after the AI-frontrunner's board approved a new $60-billion share buyback program and hiked its quarterly dividend by 10%. The broader tech sector climbed 0.70%. At 09:49 a.m. ET, the Dow Jones Industrial Average rose 78.70 points, or 0.19%, to 41,706.55, the S&P 500 gained 21.50 points, or 0.38%, to 5,654.59 and the Nasdaq Composite gained 126.91 points, or 0.72%, to 17,719.03. The blue-chip Dow traded at a record high and the Russell 2000 index tracking small caps - which tend to perform better in a low-interest-rate environment - advanced 0.71%. Seven of the 11 S&P 500 sectors traded higher, led by a 1% rise in Consumer Discretionary stocks. With Fed officials scheduled to commence their two-day meeting, traders are betting on a 65% probability the world's most influential central bank will decide to lower borrowing costs by a bigger 50 basis points, according to the CME Group's FedWatch Tool. Odds favoring a smaller 25-bps reduction stand at 35% from 66% a week earlier, as investors focused on remarks from a former policymaker supporting an outsized move and signs of a cooling labor market, among other indicators. "Retail sales being higher is suggestive that the economy is modestly better," said Michael Green, chief strategist and portfolio manager at Simplify Asset Management. "I would say that the actual underlying data is relatively mixed and markets are in a bit of a holding pattern, waiting for (Chair Jerome) Powell and the Federal Reserve tomorrow." September has historically been weak for U.S. equities, with the benchmark S&P 500 down about 1.20% for the month on an average since 1928. However, factoring in the day's gains, the index is up about 0.20% so far this September. Still, a survey of BofA fund managers showed global investor sentiment improved in September 2024 for the first time since June on optimism around a soft landing and rate cuts by the U.S. central bank. Among other movers, Intel rose 2.3% after signing Amazon.com's cloud services unit as a customer to make custom artificial-intelligence chips. Amazon.com gained 2%. Viasat dropped 6.1% after brokerage J.P.Morgan downgraded it to "neutral" from "overweight". Advancing issues outnumbered decliners by a 2.93-to-1 ratio on the NYSE, and by a 2.32-to-1 ratio on the Nasdaq. The S&P 500 posted 30 new 52-week highs and no new lows, while the Nasdaq Composite recorded 62 new highs and 27 new lows. (Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai)

Wall Street rises ahead of key Fed decision; S&P 500 nears record high

Wall Street's main indexes rose on Tuesday, with the benchmark S&P 500 close to its intraday record high, as investors awaited a crucial Federal Reserve policy decision and fresh economic data allayed worries of a sharp slowdown in the U.S. economy. A Commerce Department report showed retail sales rose unexpectedly in August, as a decline in receipts at auto dealerships was offset by strength in online purchases, suggesting the economy was on solid footing through much of the third quarter. Click here to connect with us on WhatsApp Rate-sensitive growth stocks such as Alphabet and Tesla added 1.0 per cent and 1.90 per cent, while Nvidia edged up 0.44 per cent, pushing the broader chips index higher 0.60 per cent. Microsoft boosted the S&P 500 with a 2.3 per cent rise on the day after the AI-frontrunner's board approved a new $60-billion share buyback program and hiked its quarterly dividend by 10 per cent. The broader tech sector climbed 0.70 per cent. At 09:49 a.m. ET, the Dow Jones Industrial Average rose 78.70 points, or 0.19 per cent, to 41,706.55, the S&P 500 gained 21.50 points, or 0.38 per cent, to 5,654.59 and the Nasdaq Composite gained 126.91 points, or 0.72 per cent, to 17,719.03. The blue-chip Dow traded at a record high and the Russell 2000 index tracking small caps - which tend to perform better in a low-interest-rate environment - advanced 0.71 per cent. Seven of the 11 S&P 500 sectors traded higher, led by a 1 per cent rise in Consumer Discretionary stocks. More From This Section ITC at a discount compared to large peers, says Sharekan; raises target PN Gadgil jumps 64% on debut; Tata Motors DVR cancellation nears completion Zerodha launches ATO; all you need to know about Alert Trigger Orders Newly listed Bajaj Housing Finance vs veteran LIC Housing: Which is better? Market Highlights, Sept 17: Sensex up 90pts, Nifty holds 25,400; BHFL hits upper band for 2nd day With Fed officials scheduled to commence their two-day meeting, traders are betting on a 65 per cent probability the world's most influential central bank will decide to lower borrowing costs by a bigger 50 basis points, according to the CME Group's FedWatch Tool. Odds favoring a smaller 25-bps reduction stand at 35 per cent from 66 per cent a week earlier, as investors focused on remarks from a former policymaker supporting an outsized move and signs of a cooling labor market, among other indicators. "Retail sales being higher is suggestive that the economy is modestly better," said Michael Green, chief strategist and portfolio manager at Simplify Asset Management. "I would say that the actual underlying data is relatively mixed and markets are in a bit of a holding pattern, waiting for (Chair Jerome) Powell and the Federal Reserve tomorrow." September has historically been weak for U.S. equities, with the benchmark S&P 500 down about 1.20 per cent for the month on an average since 1928. However, factoring in the day's gains, the index is up about 0.20 per cent so far this September. Still, a survey of BofA fund managers showed global investor sentiment improved in September 2024 for the first time since June on optimism around a soft landing and rate cuts by the U.S. central bank. Among other movers, Intel rose 2.3 per cent after signing Amazon.com's cloud services unit as a customer to make custom artificial-intelligence chips. Amazon.com gained 2 per cent. Viasat dropped 6.1 per cent after brokerage J.P.Morgan downgraded it to "neutral" from "overweight". Advancing issues outnumbered decliners by a 2.93-to-1 ratio on the NYSE, and by a 2.32-to-1 ratio on the Nasdaq. The S&P 500 posted 30 new 52-week highs and no new lows, while the Nasdaq Composite recorded 62 new highs and 27 new lows. Also Read PM Modi encourages use of RBI's digital currency at Odisha scheme launch FM reviews Railway Ministry's capex plan, asks to expedite 'Kavach' system PM Narendra Modi at 74: Birthday milestone meets 100 days in office Zimbabwe, Namibia to kill scores of elephants to feed people facing drought IBBI chief asks insolvency professionals to be transparent to improve bids