Futures muted in cautious start to Fed meeting week
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Intel rises after report chipmaker qualifies for federal grants
Alcoa up after announcing stake sale in Ma’aden joint venture
Futures: Dow up 0.21%, S&P 500 up 0.03%, Nasdaq off 0.20%
Updated at 07:00 a.m. ET/1100 GMT
By Johann M Cherian and Purvi Agarwal
Sept 16 (Reuters) -U.S. stock index futures were subdued onMonday as caution prevailed ahead of the Federal Reserve's pivotalmonetary policy decision later in the week, with investors pricing in a steep reduction in borrowing costs.
Ever since Fed Chair Jerome Powell hinted at an upcoming rate cut late last year, markets have witnessed abull run, with the S&P 500 .SPX and the Dow .DJI now near record highs.
However, following a mixed batch of economic data and comments from a former policymaker in the last few weeks, traders swayed in their bets on what decision the central bank will arrive at during its Sept. 17 to 18 meeting.
Odds for a 50-basis-point cut are at 59% from 30% a week ago, according to the CME FedWatch Tool, which showed a 41% probability for a 25-basis-point reduction. There is concern an outsized move could mean the Fed sees the economy cooling at a faster pace.
"As important as the 25 vs 50 debate will be the communication from the Fed. Would a 50bps be the start of 50s or a one off larger move to start the cycle? Would a 25bps mean the bar for subsequent 50s is high? There will be lots to digest," a group of strategists at Deutsche Bank led by Jim Reid said in a note.
The benchmark index and the tech-heavy Nasdaq .IXIC notched their biggest weekly jumps in about 11 months on Friday, although analysts attributed the optimism to signs of a robust economy rather than rate-cut expectations.
At 07:00 a.m. ET, Dow E-minis 1YMcv1 were up 85 points, or 0.21%, S&P 500 E-minis EScv1 were up 2 points, or 0.03%, and Nasdaq 100 E-minis NQcv1 were down 38.5 points, or 0.20%.
Futures tracking small caps RTYc1, which tend to do well with lower borrowing costs, outperformed with a 0.72%rise. The Russell 2000 index .RUT has gained over 7% so far this year and hit its highest level in over a week on Friday.
In economicdata, retail sales, weekly jobless claims, housing starts and industrial production are due through the week.
Among rate-sensitive growth stocks, Nvidia NVDA.O slipped 0.9%,while Meta META.O inched up 0.15%and Tesla TSLA.O rose 0.44%in premarket trading.
Intel Corp INTC.O climbed 2% after a report showed the chipmaker has officially qualified for as much as $3.5 billion in federal grants to make semiconductors for the U.S. Department of Defense.
Trump Media & Technology DJT.O added 3.7% after an apparent second assassination attempt on the Republican candidate and former president on Sunday, weeks before the closely watched U.S. presidential election.
Crypto stocks trended lower, with Microstrategy MSTR.O down 2.2% and Riot Platforms RIOT.O slipping 1.5%, tracking a 2% fall in bitcoin prices BTC=.
Alcoa AA.N gained 1.4% after the aluminum maker said on Sunday it wouldsell a 25.1% stake in its joint venture with Saudi Arabia's Ma'aden for $1.1 billion.
US rates have risen but unemployment has stayed low https://reut.rs/3zh65D1
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
