Traders work on the trading floor of the New York Stock Exchange on September 13, 2024.
Spencer Pratt | Getty Images
Stock futures were flat Monday night as Wall Street braced for key retail sales data and the start of the Federal Reserve's September policy meeting.
Intel Shares rose 8% in after-hours trading The company said it plans to fold its foundry business into a subsidiary. The Biden administration also provided up to $3 billion in funding to the company through the CHIPS Act.
Futures and S&P 500 Index Hovering near the flat line, related to futures Dow Jones Industrial Average. Nasdaq 100 Futures Add 0.1%.
Wall Street is experiencing a mixed trading session. 30 stocks Dow Chemical It closed up more than 228 points, or 0.55%, hitting a record high S&P 500 Index Add 0.13%. this Nasdaq Index Shares fell 0.52% as Apple and well-known chip stocks fell.
On Tuesday, investors will parse August retail sales data to get a final look at the health of U.S. consumers ahead of the Federal Reserve's rate decision. Economists polled by Dow Jones expected a decline of 0.2%. Excluding autos, they saw growth of 0.2%. The results could affect the outcome of the rate cut.
Wall Street is awaiting a long-awaited interest rate cut from the Federal Reserve, a move that could help boost corporate earnings amid high borrowing costs and inflation. The Federal Reserve began aggressive interest rate hikes for the first time in March 2022.
While Wall Street expects a rate cut on Wednesday, markets are divided on the size of a potential cut. Traders currently see a 67% chance of a 50 basis point rate cut, according to CME Group's FedWatch tool. That's up from Friday's roughly 47% chance.
“Market expectations are mixed for a quarter-point and 50-basis-point rate cut as conflicting signals of solid economic activity but a weak labor market complicate decision-making,” said Seema Shah of Major Asset Management. “Markets expected little. It's going to be so tearing, so close to the FOMC meeting.”
While a 50 basis point rate cut is not impossible, the chief global strategist believes the Fed should take a more cautious approach when cutting rates and easing rates by 25 basis points. She expects further rate cuts of 25 basis points in November and December.
In other economic news, industrial production and manufacturing production data for August are also due to be released, along with the National Association of Home Builders Housing Market Index for September.