Federal Reserve's Divisive Rate Decision Spurs Market Movements

U.S. stock futures edged higher amid anticipation of a Federal Reserve rate cut. This week's decision is expected to be controversial, with possible dissent among members. Rate cuts have buoyed Wall Street indexes, while technology sectors face scrutiny due to reliance on debt for AI developments.

On Monday, U.S. stock index futures showed slight gains as investors anticipated a crucial Federal Reserve decision on interest rate cuts. The move, expected on Wednesday, is set to be a contentious one among policymakers, marking one of the most divided meetings in recent memory.

Data indicating moderate consumer spending last quarter has reassured investors that the Fed may focus on reducing borrowing costs. Despite persistent inflation, some key Fed policymakers have softened their stance towards a rate cut, increasing the likelihood of a decision to lower rates.

The Federal Reserve's meeting has traders on edge, as an 87.4% chance for a 25-basis-point cut is predicted. In the stock market, technology companies like Broadcom and Oracle are under watch, with their positions affected by debt-fueled AI ventures and potential market volatility.

(With inputs from agencies.)