News of the day for September 17, 2024
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The Federal Reserve kicks off a two-day meeting that is expected to end tomorrow with its first interest-rate cut in four years; Intel (INTC) shares are jumping in premarket trading after CEO Pat Gelsinger laid out more restructuring plans; Microsoft (MSFT) shares are gaining on a $60 billion stock buyback plan and a 10% dividend hike; Meta Platforms (META) reportedly is banning Russia’s RT from Instagram and Facebook; and Amazon (AMZN) is ordering its staff back to the office five days a week. U.S. stock futures are rising after major indexes closed mixed yesterday. Here’s what investors need to know today.
1. Fed Begins Pivotal Two-Day Meeting
The Federal Reserve begins its highly anticipated two-day meeting, which is expected to conclude tomorrow with the central bank’s first interest-rate cut since 2020 as inflation cools and the jobs market weakens. Investors’ focus will be on how big a cut will be, with analysts divided on whether the bank will undertake a more conservative quarter-point cut or ease by as much as 50 basis points.
2. Intel Jumps on Foundry Separation, Chips for Amazon, Military
Intel (INTC) shares are jumping more than 6% in premarket trading after the embattled chipmaker’s Chief Executive Officer (CEO) Pat Gelsinger announced plans to turn its chip foundry business into a separate subsidiary that would boost external funding, and said it would produce chips for Amazon (AMZN) and the U.S. military. Gelsinger said the chipmaker has made progress in cutting costs, including reducing its real estate footprint and selling part of its Altera programmable chip unit. Still, its shares have shed more than half their value this year.
3. Microsoft Gains on $60B Buyback Plan, Dividend Hike
Microsoft (MSFT) shares are gaining almost 2% in premarket trading after it announced plans for a $60 billion stock buyback program and a 10% boost to its quarterly dividend to 83 cents from 75 cents. Microsoft’s moves come as the tech giant faces pressure to show that its hefty spending on artificial intelligence (AI) is paying off for investors. Microsoft told investors in July that it plans to ramp up its spending on AI infrastructure to meet demand, which it said outpaces its capacity.
4. Meta Reportedly Barring Russia’s RT from Instagram, Facebook
Meta Platforms (META) is removing Russian TV channel RT from its apps, including Instagram and Facebook, citing “foreign interference activity” by the Kremlin-backed outlet, according to The Wall Street Journal. Meta said Russia is trying to deploy social media to influence public opinion, the report said, just days after the U.S. government announced sanctions against the state-owned channel. Meta shares are edging higher in premarket trading.
5. Amazon CEO Orders Staff Back to Work Five Days a Week Next Year
Amazon (AMZN) CEO Andy Jassy directed the tech and retail giant’s workers back to the office five days a week starting next year, arguing such a move would “strengthen” the tech firm’s culture. The move comes as many firms that embraced distributed workplaces increasingly roll things back despite remote work’s continued popularity among employees. Amazon shares are up less than 1% in premarket trading.
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