Japan becomes the last major economy to abandon negative interest rates; the Federal Reserve kicks off its two-day policy meeting with investors focused on what officials will say about when interest rates will be cut; shares of Unilever Plc (UL) are rising after the consumer products giant announced plans to separate Ben & Jerry’s and its other ice cream brands, with 7,500 jobs set to be affected; Nvidia (NVDA) chief executive Jensen Huang unveiled the Blackwell artificial intelligence chip; and Wall Street bonuses are down 2%. Stock futures are lower ahead of the Fed meeting and bitcoin (BTCUSD) is extending its retreat, now down to around $63,000. Here’s what investors need to know today.

1. Bank of Japan Ends Era of Negative Interest Rates

The Bank of Japan became the last major central bank to abandon its negative interest rate policy Tuesday, saying a new era of stable inflation is in sight for the country. The BOJ moved its key target for short-term interest rates to a range of 0% to 0.1%, its first rate increase since 2007. Japan is the single largest overseas holder of U.S. Treasurys, and higher interest rates typically buoy the yen, which makes the country's exports more expensive. Still, there’s unlikely to be a mass exodus by Japanese investors into domestic government bonds, given how wide the differentials are with the U.S.; the Japanese 10-year yield is at around 0.7% while Treasury yields are at around 4.3%.

2. Federal Reserve Kicks Off Policy Meeting

The Federal Reserve begins its two-day policy meeting Tuesday, with investors focused on what officials will say about when and how much the central bank will cut interest rates, especially with recent inflation numbers being hotter than expected. Fed officials have said they are waiting for “greater confidence” that inflation is firmly on its way back down to the central bank’s goal of 2% before they lower the rate. The Fed is set to keep its benchmark interest-rate target unchanged this week, however. The rate is crucial for Americans as it influences mortgages, credit cards, auto loans, and other kinds of loans—all of which now have borrowing costs close to multi-decade highs.

3. Unilever Rises on Plan to Spin Off Ice Cream Unit, Including Ben & Jerry’s

Shares of Unilever Plc (UL) are up about 3% in premarket trading after the consumer products giant announced plans to separate Ben & Jerry’s and its other ice cream brands such as Magnum into a stand-alone business as part of a restructuring that could affect around 7,500 jobs. The London-based maker of Dove soap and Hellmann’s mayonnaise said the jobs affected would be “predominantly office-based roles globally.” The consumer-goods giant said Tuesday the restructuring would begin immediately and is expected to be completed by the end of 2025, delivering total cost savings of about 800 million euros ($868.3 million.)

4. Nvidia Presents the Blackwell Chip in Push to Extend Firm's AI Edge

Nvidia chief executive Jensen Huang unveiled his company’s latest chips, code-named Blackwell on Monday in an event Bank of America analysts had dubbed the “AI Woodstock.” The next generation of AI chips is faster and larger than its predecessor, Hopper, whose flagship chip—the H100—was in heavy demand. The Blackwell is the "world's most powerful chip," and will power "a new era of computing," the company said. Amazon (AMZN), Microsoft (MSFT), and Alphabet's Google (GOOGL) are among the partners set to use Blackwell. Nvidia shares were down 1.8% about two hours before the opening bell.

5. Wall Street Bonuses Fell in 2023 Amid Dealmaking Drought

The average Wall Street bonus fell 2% to $176,500 in 2023, the lowest since 2019, according to an analysis by New York State Comptroller Thomas DiNapoli. The drop, amid a drought in dealmaking, was far less dramatic than it was in 2022, when the average bonus slumped 25%. DiNapoli said the dip in bonuses will generate $4 million less in state income revenue and $2 million less in New York City tax revenue compared with last year.