US futures tread water in countdown to rate call

Published On Sep 16, 2024, 7:02 AM

Stocks exhibited mixed performance, with the tech-heavy Nasdaq Composite seeing a decline of around 0.5%, while the Dow Jones Industrial Average reached a record high driven by a 6% surge in Intel stock. Investors are anxiously awaiting the Federal Reserve's decision on interest rate cuts this week, with expectations for a significant cut for the first time in four years. Apple shares dropped by approximately 3% due to concerns about weaker-than-expected demand for the iPhone 16. The outlook also includes a potential for a hiring freeze at Boeing amid a major strike affecting thousands of its workers.

Stock Forecasts

Intel has recently been bolstered by government contracts and collaborations, suggesting continued strength. Based on this momentum and favorable developments in the chip sector, Intel's stock (INTC) is projected to show positive momentum in the upcoming weeks.

Apple's stock faces downward pressure due to reported lower demand for the iPhone 16 and increasing competition, impacting investor sentiment negatively. Thus, Apple's stock (AAPL) is predicted to trend negatively.

With the anticipation of a rate cut, sectors that benefit from lower borrowing costs, like real estate, could see a boost. Specifically, Zillow (Z) has received an analyst upgrade and positive factors affecting its business outlook, suggesting a positive move ahead.

Boeing may struggle in the near term due to a hiring freeze and ongoing strike issues which could impair operational capabilities. Therefore, Boeing's stock (BA) is likely to trend negatively.

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An ongoing strike by Boeing's biggest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly on several fronts for the company.

An ongoing strike by Boeing's biggest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly on several fronts for the company.

The company said "executives, managers, and employees" jobs are all at risk