Stock Market Today: Dow futures hold record highs as Fed rate cut looms

Sep 17, 2024
stock-market-today:-dow-futures-hold-record-highs-as-fed-rate-cut-looms

Here are the top stories to read ahead of Tuesday’s trading:

Latest Updates

Stocks making notable moves in Tuesday’s premarket action:

Microsoft stock is up 2% after the software group hiked its dividend and said it would launch a new $60 billion buyback program.

Intel shares are jumping 8% after the semiconductor maker said it will turn its foundry business into an independent subsidiary, and it’s deepening its work with Amazon Web Service on chip designs.

Dell Technologies shares are up 2% after the computer technology group’s stock was initiated with an Outperform rating and price target of $135 at Mizuho.

SolarEdge Technologies is down 5% after shares of the solar-power-equipment maker were downgraded to Underperform from Hold at Jefferies and the price target cut to $17 from $27.

Here are some of the potential market catalysts due Tuesday for traders to consider:

8:30 a.m. Eastern. U.S. retail sales for August.

9:15 a.m. U.S. industrial production for August.

9:15 a.m. U.S. capacity utilization for August.

10:00 a.m. U.S. business inventories for July.

10:00 a.m. U.S. home builder confidence index for September.

1:00 p.m. Treasury will publish results of $13 billion auction of 20-year notes.

How are stock-index futures trading:

S&P 500 futures are up 0.3%.

Dow Jones Industrial Average futures are adding 0.2%.

Nasdaq 100 futures are gaining 0.5%.

On Monday, the Dow Jones Industrial Average rose 228 points, or 0.55%, to 41,622, the S&P 500 increased 7 points, or 0.13%, to 5,633, and the Nasdaq Composite dropped 92 points, or 0.52%, to 17,592.

Futures indicate a positive start for stocks on Tuesday, as investors continue to welcome the prospect of the Federal Reserve on Wednesday starting a cycle of rate cuts.

Equities are receiving additional support by Treasury yields at cycle lows and news that Microsoft is hiking its dividend and launching a new $60 billion share buyback program.

“Investors are fixated on how fast the Fed will slash rates, thinking it’s the golden ticket to strong equity returns through year’s end, said Stephen Innes, managing partner at SPI Asset Management.

“However, the real driver will be the health of the job market. For now, the market is bullish on rate cuts without a recession,” Innes added.

Markets are currently pricing in a 67% chance the Fed will trim rates by 50 basis points on Wednesday.

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