As traders settle into an active morning, US equity indexes are positioning themselves favorably ahead of the Federal Reserve's crucial two-day monetary policy meeting. Both expectations and anxieties mount surrounding the central bank's upcoming decisions, particularly in light of last month's retail sales report due for release today. In premarket trading, the Standard & Poor's 500 Index increased by 0.4%, while the Dow Jones Industrial Average saw a 0.3% uptick.
Notably, the Nasdaq Composite rose 0.6%, signaling a positive outlook across various sectors. Globally, the momentum is echoed, with major Asian exchanges trending upwards and European bourses also showing gains midday. The primary focus today shifts to the Federal Reserve's monetary policy committee, which convenes to deliberate potential interest rate adjustments.
Market watchers are keenly anticipating an announcement tomorrow, with the CME FedWatch tool indicating a 65% probability that the Fed will opt for a substantial cut of 50 basis points. The remaining expectations lean towards a more conservative reduction of 25 basis points. Further economic data scheduled for release today includes the retail sales report for August at 8:30 am ET, providing insights into consumer spending trends.
Shortly after, the industrial production report will be unveiled at 9:15 am, followed by July's business inventories report and the housing market index for September at 10 am. Compounding the data releases, Federal Reserve Bank of Dallas President Lorie Logan is slated to speak at 10 am, adding to the market's anticipations. In corporate news, Microsoft Corporation ($MSFT) captured attention with its stock climbing by 1.8% prior to the market's opening.
The technology titan announced a robust share repurchase program valued up to $60 billion, alongside a 10% increase in its quarterly dividend, which signals strong confidence in its financial health. Meanwhile, Intel Corporation ($INTC) experienced a significant 6.4% rise in its stock prices following revelations of plans to restructure its foundry business into a standalone unit within the organization.
Additionally, the company has expanded its partnership with Amazon.com Inc. ($AMZN) in the cloud sector, further solidifying its market presence. On the earnings front, Ferguson Enterprises ($FERG) is preparing to release its financial results today. Furthermore, investors are eagerly awaiting reports from FedEx Corporation ($FDX), Lennar Corporation ($LEN), General Mills, Inc.
($GIS), and Darden Restaurants, Inc. ($DRI) later in the week, which could influence market sentiment and investor strategies. In commodities, Bitcoin saw an uptick of 2.2%, hitting $59,202. Meanwhile, West Texas Intermediate crude oil saw a slight dip of 0.3%, trading at $69.87 per barrel. The yield on 10-year US Treasuries remained fairly stable at 3.62%, while gold prices experienced a downturn of 0.4%, settling at $2,599 per ounce.
As the markets react to these developments, investors are urged to remain vigilant and adaptable, given the ongoing volatility and the potential impact of the Federal Reserve's impending decisions on interest rates and economic outlook..