Stocks Rise Ahead of Fed, with Retail Data in Focus – Europe Market Wrap

US market futures gained as investors anticipated a final round of economic data before the Fed decides on the extent of Wednesday’s interest rate cut.

S&P 500 contracts rose for the seventh day in a row, while the Nasdaq 100 looked poised to recover from Monday’s drop in tech megacaps. Microsoft surged in premarket trade after increasing its dividend by 10% and announcing a $60 billion stock buyback program. Intel gained 8.3% after winning new business from Amazon.

The European Stoxx 600 index rose 0.8%, led by retail and banking firms. The Dollar and Treasury yields remained stable.

On the eve of the Fed’s first rate cut in more than four years, investors will focus on US retail data due later. The figures will contribute to a market debate about whether the Fed would cut interest rates by 25 bps or double that amount.

Meanwhile, confidence about Fed rate cuts has lifted investor sentiment for the first time since June, according to a global survey conducted by BofA. Fund managers see a 79% chance of a soft landing as interest rate cuts boost the economy.