U.S. stock futures are edging lower as indexes come off two straight winning sessions; the Federal Reserve begins its two-day meeting on interest rates and the economy; Google parent Alphabet ( GOOGL ) reportedly is in talks to acquire cybersecurity software provider Wiz; Intel ( INTC ) shares are moving further higher in premarket trading as new CEO Lip-Bu Tan takes the helm today; and D-Wave Quantum ( QBTS ) shares are pulling back after soaring in recent days since its announcement of a computer "breakthrough." Here's what investors need to know today.
1. US Stocks Futures Point Lower Following Two-Day Surge
U.S. stock futures are edging lower following back-to-back winning sessions for indexes amid a four-week skid. Nasdaq futures are 0.5% lower after rising by 0.3% yesterday, while Dow Jones Industrial Average and S&P 500 futures also are slightly lower after those indexes tacked on 0.9% and 0.6%, respectively. Bitcoin ( BTCUSD ) is down about 1.5% to trade below $83,000. Yields on the 10-year Treasury note are ticking higher. Gold and oil futures are up.
2. Investors Watching as Fed Opens Two-Day Meeting
The Federal Open Market Committee (FOMC) begins its two-day meeting, where members are expected to keep interest rates unchanged from their current levels. The meeting follows the Fed's January decision not to adjust the federal funds rate from 4.25% to 4.5%, with central bankers pointing to a stubborn inflation rate and weakness in the job market. Inflation has shown moderate improvement since that meeting, but investors don't think it's enough to sway the Fed to make changes, according to the CME Group's FedWatch tool.
3. Google Parent Alphabet Reportedly in Renewed Talks to Acquire Wiz
Investors were monitoring Alphabet ( GOOGL ) after The Wall Street Journal reported that the Google parent was in "advanced talks" to acquire cybersecurity software provider Wiz for $30 billion. The latest news follows last year's reports of a possible deal between the companies—at a lower price tag, but which didn't result in a transaction. Alphabet shares are little changed in premarket trading.
4. Intel Stock Rises Further as New CEO Tan Takes Helm of Struggling Chipmaker
Intel ( INTC ) shares, which surged nearly 7% yesterday to lead Nasdaq gainers, are edging higher in premarket trading as CEO Lip-Bu Tan begins his role as head of the struggling chipmaker. Reuters reported Monday that Tan is considering "significant changes" to Intel's chip manufacturing processes and AI strategies, as well as cuts to middle management and reform of its contract manufacturing business. Intel's stock has declined nearly 40% over the past 12 months.
5. D-Wave Stock Pulls Back After Soaring on 'Breakthrough'
D-Wave Quantum ( QBTS ) shares, which have soared since its publication last week of what it called "a scientific breakthrough" in the performance of its "annealing quantum computers," are dropping 11% in premarket trading. D-Wave Quantum CEO Dr. Alan Baratz called it "an industry first," arguing that D-Wave's "computers are now capable of solving useful problems beyond the reach of the world's most powerful supercomputers." D-Wave shares gained 10% on Monday, ending at $11.18, their highest closing level since February 2021.
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