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U.S. equity futures moved higher again Tuesday, while Treasury yields and the dollar were largely steady, as investors looked the start of the Federal Reserve’s two-day policy meeting with an eye on retail sales data prior to the start of trading.
Stocks ended higher on Monday following a tepid session that saw benchmark 2-year Treasury note yields, which are the most-sensitive to interest rate changes, fall to a two-year low amid a rush in bets on half point rate cut from the Fed tomorrow in Washington.
The tech-focused Nasdaq, however, was held down by the ongoing slide in Apple (AAPL) , which hit a one-month low following reports of muted demand for its new iPhone 16. That weakness also bled into AI chipmakers and the broader tech sector, with the Nasdaq ending 0.52% lower on the session.
Focus Tuesday will shift to the Commerce Department’s reading of August retail sales at 8:30 am Eastern time, which is expected to show a modest dip in the headline reading thanks to a 3% decline in gas prices, as well as industrial production at at 9:15 am Eastern time.
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With the Fed set to unveil its September rate decision tomorrow afternoon, stocks are likely to remain range-bound, with an eye towards movements in the bond market, as traders await both Chairman Powell’s statement and the central bank’s new economic projections for the next two years.
Related: This Fed news may be more important than a rate cut this week
Benchmark 2-year note 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, futures contracts tied to the S&P 500 suggest an opening bell gain of around 22 points, with the Dow Jones Industrial Average called 120 points higher from last night’s record close.
The Nasdaq, meanwhile, is called 110 points higher thanks in part to early gains for Nvidia (NVDA) and Tesla (TSLA) .
Other stocks on the move include Intel (INTC) , which leapt 7.65% following confirmation of a $3.5 billion contract with the U.S. government as well as news of a chip-supply deal with Amazon (AMZN) and plans to turn its foundry business into a stand-alone business.
Microsoft (MSFT) shares were also active, rising 1.9% after the tech giant unveiled plans for a new $60 billion buyback while boosting its quarterly dividend.
Related: Markets push for big Fed rate cut after inflation reports
In overseas markets, Europe’s Stoxx 600 was marked 0.65% higher in early Frankfurt trading despite some disappointing investor sentiment data from Germany, while Britain’s FTSE 100 rose 0.74% higher in London.
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Overnight in Asia, Japan’s Nikkei 225 fell 1.03% on its return from the Monday ‘Respect the Aged’ holiday as the yen rose to a one-year high of around 140.51 against the U.S. dollar.
The regional MSCI ex-Japan benchmark, meanwhile, was marked 0.57% higher into the close of the session.
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