Wall Street Futures Surge as Fed Decision Looms, Intel Jumps on Possible Chip Deal

Wall Street's futures are surging ahead of the Federal Reserve's pivotal decision on interest rates. The market is assigning a high probability to a quarter-point increase, but the real test lies in Chair Kevin Warsh's message on the path beyond September.

The rebound in US stock futures comes as oil prices ease and investors await August retail sales data due at 8:30 am ET. A stronger number could reinforce the argument that demand remains resilient enough to tolerate further tightening, pushing Treasury yields higher again.

Intel has jumped more than 5% after reports of a possible deal with SK Hynix to produce memory chips in the US for the first time. However, there is a key risk: if SK Hynix abandons the plan or chooses a different partner/site, Intel's Ohio timeline remains unchanged.

Nvidia has edged higher, while Microsoft and Apple slipped slightly, following a volatile stretch sparked by calls from leading AI executives for slower development of increasingly powerful systems. JPMorgan analyst Gokul Hariharan argues that AI development is unlikely to slow materially, but investors are reassessing how much risk should be embedded in stretched technology valuations.