Wall Street followed global markets higher today in anticipation of what most expect will be the first interest rate cut this week by the Federal Reserve in more than four years, the Associated Press reports. Futures for the S&P 500 rose 0.3% before the bell, while futures for the Dow Jones Industrial Average ticked 0.2% higher.
Traders are shifting bets toward a larger-than-usual rate cut by the Fed of half a percentage point, according to data from CME Group. The difference between a half-point cut and a quarter may sound academic, but it can have far-ranging effects. Lower rates relieve pressure on the economy, but they can also fuel inflation.
Intel jumped more than 7% in premarket after the chipmaker announced it was expanding its partnership with Amazon Web Services in a multiyear, multibillion dollar deal centered around Intel-made AI chips. Intel, which announced 15,000 layoffs last month after badly missing Wall Street profit targets, is aiming to save $10 billion in 2025. The company also plans to turn its struggling foundry business into a subsidiary.
Microsoft shares are almost 2% higher after announcing a share repurchase program of up to $60 billion and it raised its dividend by 10%, to 83 cents per share.
U.S. benchmark crude oil rose 9 cents to $70.18 per barrel. Brent crude, the international standard, shed 8 cents to $72.67 per barrel.
The dollar fell to 140.57 Japanese yen from 140.61 yen.
