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Stock futures on Wall Street are slightly higher as investors await the Federal Reserve’s interest rate decision this week. Intel shares saw a spike in extended hours trading after announcing a deal to manufacture artificial intelligence chips for Amazon’s cloud division. Microsoft also made headlines by raising its dividend and approving a new $60 billion share buyback program.

US stock futures showed gains on Tuesday, with the Dow futures up 0.1%, Nasdaq futures up 0.1%, and S&P 500 futures up 0.3%. Tech Stocks like Apple, Nvidia, and Broadcom were under pressure after Apple’s tepid iPhone demand warning.

The Federal Reserve is set to meet this week for a crucial interest rate decision. Markets are anticipating a potential rate cut, with a 67% chance of a 50-basis point cut according to the CME Group’s FedWatch Tool. Former New York Fed President Bill Dudley argued for a larger cut, stating that current Interest rates are above a neutral level.

Intel’s contract chipmaking unit secured a deal to manufacture AI chips for Amazon, leading to a surge in Intel shares. The company also announced cost-saving measures and eligibility for government funding for military chip production.

Microsoft increased its dividend and approved a $60 billion share buyback program in an effort to return cash to shareholders following strong earnings driven by AI investments.

Oil prices edged up as Hurricane Francine disrupted US output. Crude production and fuel output in the Gulf of Mexico were impacted, leading to higher crude prices. Traders are awaiting the latest US crude stockpile data to gauge market conditions.

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