Market Moves: Fed's Rate Cut Set to Stir Stocks

U.S. stock index futures edged higher as investors anticipated a Federal Reserve rate cut, aiming to boost consumer spending and the labor market. Divergent views among policymakers could lead to the largest decision split since 1992. Wall Street gains were noted amidst tech sector fluctuations and corporate shifts.

Investors are cautiously optimistic as U.S. stock index futures showed slight gains on Monday, with increased expectations of a Federal Reserve rate cut. This anticipated policy shift comes during a pivotal meeting this week, marked by contrasting views among policymakers.

Last week's delayed data indicated a moderate rise in consumer spending, which has bolstered investors' confidence that the Fed will indeed focus on lowering borrowing costs in an effort to stabilize the labor market. However, persistent inflation concerns have made some policymakers hesitant about aggressive rate reductions, despite a few advocating for a more dovish approach.

Markets show an 87.4% probability of a 25-basis-point cut on Wednesday, crucially awaiting Chair Jerome Powell's remarks on future policy directions. Meanwhile, broader Wall Street indices continued upward, supported by tech sector developments such as potential chip-related deals involving Broadcom and Oracle's financial updates.

(With inputs from agencies.)