Stock market today: Stocks higher with Fed rate cut on horizon

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U.S. stock futures rose again on Tuesday, while Treasury yields and the dollar were largely flat as investors eyed the start of the Federal Reserve’s two-day policy meeting ahead of retail sales data trading.

Stocks ended Monday higher after a tepid session in which yields on benchmark 2-year Treasury bills, which are most sensitive to interest rate changes, fell to a two-year low amid a garden of bets on a half-point rate cut from the Fed. tomorrow in Washington.

However, the tech-focused Nasdaq was held back by Apple’s ongoing slide (AAPL) which hit a one-month low following reports of subdued demand for its new iPhone 16. That weakness also weighed on AI chipmakers and the broader tech sector, with the Nasdaq ending the session 0.52% lower.

Focus on Tuesday will shift to the Commerce Department’s August retail sales reading at 8:30 a.m. ET, which is expected to show a modest decline in the headline reading due to a 3 percent drop in gas prices as well as industrial production at 9:15 a.m. eastern time.

Traders are betting on a big rate cut from the Fed when it concludes its two-day meeting in Washington tomorrow.

Scott Olson/Getty Images

With the Fed set to unveil its September rate decision tomorrow afternoon, stocks are likely to remain range-bound with an eye on bond market moves as traders await both Chairman Powell’s statement and the central bank’s new economic forecasts for the next two. years.

Related: This Fed news may be more important than a rate cut this week

Benchmark 2-year yields were last marked 3 basis points higher from yesterday’s close at 3.553%, while 10-year notes were little changed at 3.614%.

On Wall Street, S&P 500 futures suggest an opening gain of about 22 points, with the Dow Jones Industrial Average up 120 points from last night’s record close.

Meanwhile, the Nasdaq is named 110 points higher thanks in part to early gains for Nvidia. (NVDA) and Tesla (TSLA) .

Other stocks on the move include Intel (INTC) which rose 7.65% after confirmation of a $3.5 billion contract with the US government as well as news of a chip supply deal with Amazon (AMZN) and plans to turn his foundry business into a stand-alone business.

Microsoft (MSFT) Shares were also active, rising 1.9 percent after the tech giant unveiled plans for a new $60 billion share buyback while increasing its quarterly dividend.

Related: Markets call for big Fed rate cut after inflation reports

In overseas markets, Europe’s Stoxx 600 was marked 0.65% higher in early Frankfurt trade despite disappointing German investor sentiment data, while Britain’s FTSE 100 rose 0 .74% in London.

More Wall Street analysts:

• Analyst says Intel would have to divest a key business to survive
• Analysts are adjusting their price target on Bookings.com shares in the travel market
• Analysts are placing bets on Las Vegas casino stocks

Overnight in Asia, Japan’s Nikkei 225 fell 1.03% following a rebound from Monday’s “Respect the Aged” holiday, while the yen climbed to a one-year high of around 140.51 against the US dollar .

Meanwhile, the regional benchmark MSCI ex-Japan index was marked 0.57 percent higher by the session’s close.

Related: Veteran fund manager sees world of pain coming for stocks