Micron's Strong Earnings Boost Chip Stocks and AI Optimism, Pushing US Markets Near Record Highs

US stock futures rise as chips gain on Micron results; GDP data ahead

June 26 (Reuters) - U.S. stock index futures rose on Thursday, signaling indexes were nearing their record peaks, as robust earnings from memory-chip maker Micron fueled optimism around artificial intelligence while investors awaited economic data. The benchmark S&P 500 (.SPX), opens new tab and tech-led Nasdaq (.IXIC), opens new tab were nearly 1% below their record peaks at Wednesday's close, supported by the de-escalation in Middle East hostilities. Chipmakers tracked a 2.7% premarket rise in Micron Technology shares (MU.O), opens new tab after the company forecast quarterly revenue above estimates, citing growth in demand for its chips used in AI data centers. Nvidia (NVDA.O), opens new tab advanced 1.2% after scaling a fresh all-time high on Wednesday. Following Federal Reserve Chair Jerome Powell's congressional testimony where he reiterated a wait-and-watch approach on interest rate cuts, reports suggested President Donald Trump could potentially announce a Fed Chair successor as early as September or October in a bid to undermine Powell. The move could affect the central bank's independence at a time when policymakers are striving to balance the risk of slowing growth and higher inflation, as Trump's wide-ranging tariffs and geopolitical turmoil threaten to drive up prices in the short-term. For the day, investors are focusing on the Commerce Department's final take on first-quarter GDP due at 10:00 a.m. ET, as well as durable goods data for May and initial jobless claims data at 08:30 a.m. ET. Traders are pricing in about 63 basis points of rate cuts by the end of 2025, with a 70% chance of a 25-bps rate cut in September, according to CME Group's FedWatch tool. At 05:21 a.m. ET, Dow E-minis were up 93 points, or 0.21% and S&P 500 E-minis were up 18.75 points, or 0.31%. Nasdaq 100 E-minis were up 99.25 points, or 0.44% Shares of sportswear company Nike (NKE.N), opens new tab edged up 0.8% ahead of its quarterly results due before the opening bell. Some of the central bank officials scheduled to speak later in the day include Fed Chicago President Austan Goolsbee, Fed Richmond President Thomas Barkin, Fed Cleveland President Beth Hammack, Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari. On Friday, the Personal Consumption Expenditures (PCE) report - the Fed's preferred gauge of inflation - will be scrutinized to ascertain tariff-induced price changes in the U.S. economy. Reporting by Kanchana Chakravarty in Bengaluru; Editing by Devika Syamnath Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Stocks

US stock futures rise as chips gain on Micron results; GDP data ahead

(Reuters) -U.S. stock index futures rose on Thursday, signaling indexes were nearing their record peaks, as robust earnings from memory-chip maker Micron fueled optimism around artificial intelligence while investors awaited economic data. The benchmark S&P 500 and tech-led Nasdaq were nearly 1% below their record peaks at Wednesday's close, supported by the de-escalation in Middle East hostilities. Chipmakers tracked a 2.7% premarket rise in Micron Technology shares after the company forecast quarterly revenue above estimates, citing growth in demand for its chips used in AI data centers. Nvidia advanced 1.2% after scaling a fresh all-time high on Wednesday. Following Federal Reserve Chair Jerome Powell's congressional testimony where he reiterated a wait-and-watch approach on interest rate cuts, reports suggested President Donald Trump could potentially announce a Fed Chair successor as early as September or October in a bid to undermine Powell. The move could affect the central bank's independence at a time when policymakers are striving to balance the risk of slowing growth and higher inflation, as Trump's wide-ranging tariffs and geopolitical turmoil threaten to drive up prices in the short-term. For the day, investors are focusing on the Commerce Department's final take on first-quarter GDP due at 10:00 a.m. ET, as well as durable goods data for May and initial jobless claims data at 08:30 a.m. ET. Traders are pricing in about 63 basis points of rate cuts by the end of 2025, with a 70% chance of a 25-bps rate cut in September, according to CME Group's FedWatch tool. At 05:21 a.m. ET, Dow E-minis were up 93 points, or 0.21% and S&P 500 E-minis were up 18.75 points, or 0.31%. Nasdaq 100 E-minis were up 99.25 points, or 0.44% Shares of sportswear company Nike edged up 0.8% ahead of its quarterly results due before the opening bell. Some of the central bank officials scheduled to speak later in the day include Fed Chicago President Austan Goolsbee, Fed Richmond President Thomas Barkin, Fed Cleveland President Beth Hammack, Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari. On Friday, the Personal Consumption Expenditures (PCE) report - the Fed's preferred gauge of inflation - will be scrutinized to ascertain tariff-induced price changes in the U.S. economy. (Reporting by Kanchana Chakravarty in Bengaluru; Editing by Devika Syamnath)

S&P 500 and Nasdaq to open near record levels as Micron results boost chip stocks

(Reuters) -The S&P 500 and Nasdaq were on track to open near record levels on Thursday as robust earnings from memory-chip maker Micron fueled optimism around artificial intelligence while investors assessed a slew of economic data. The benchmark S&P 500 and tech-led Nasdaq were about 1% below their all-time peaks at Wednesday's close, following a truce in the Middle East conflict. The Nasdaq 100 - a subset of the Nasdaq composite index - closed at a record high in the previous session. Semiconductor makers got a lift from a 1.3% rise in Micron Technology shares premarket after the company forecast quarterly revenue above estimates, citing strong demand for its chips used in AI data-centers. Shares of Marvell Technology and Advanced Micro Devices climbed 2.3% and 2.6%, respectively. Nvidia rose 1.3% after scaling a fresh all-time high on Wednesday. Economic data was mixed. The final reading from the U.S. Commerce Department showed gross domestic product contracted 0.5% in the first quarter. Economists polled by Reuters had forecast a 0.2% contraction. "A 0.5% contraction is worse-than-expected, but that really reflects how much imports overwhelmed exports in the first quarter, as businesses and consumers tried to get ahead of the tariff program," said Sam Stovall, chief investment strategist at CFRA Research. Separately, a report for weekly jobless claims showed the number of Americans filing new applications for jobless benefits fell last week. At 08:52 a.m. ET, Dow E-minis were up 100 points, or 0.23%, S&P 500 E-minis were up 18.5 points, or 0.3%. Nasdaq 100 E-minis were up 90 points, or 0.4% Investors also weighed Federal Reserve Chair Jerome Powell's remarks during his two-day congressional testimony, where he reiterated a wait-and-see approach toward interest rate cuts. President Donald Trump intensified his attacks on Powell for not cutting rates sooner. On Wednesday, Trump said he had narrowed down his choice to three or four candidates to potentially replace the Fed chair. Traders are pricing in about 63 basis points worth of rate cuts by the end of 2025, with expectations for the first cut in September. On Friday, the Personal Consumption Expenditures report - the Fed's preferred gauge of inflation - will be scrutinized to ascertain tariff-induced price changes in the U.S. economy. Some of the central bank officials scheduled to speak later in the day include Fed Cleveland President Beth Hammack, Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari. Shares of sportswear company Nike edged up 0.6% ahead of its quarterly results. (Reporting by Kanchana Chakravarty and Nikhil Sharma in Bengaluru; Editing by Devika Syamnath)

US stock futures rise as Micron results boost chips; GDP data in focus

(Reuters) -U.S. stock index futures rose on Thursday, putting Wall Street on track to open near record highs, as robust earnings from memory-chip maker Micron fueled optimism around artificial intelligence while investors awaited economic growth data. The benchmark S&P 500 and tech-led Nasdaq were nearly 1% below their all-time peaks at Wednesday's close, supported by the de-escalation in Middle East hostilities. U.S. President Donald Trump announced plans to hold talks with Iran next week to seek a commitment on Tehran ending its nuclear ambitions, which were the catalyst for Israel's attacks earlier this month. Chipmakers tracked a 2% premarket rise in Micron Technology shares after the company forecast quarterly revenue above estimates, citing growth in demand for its chips used in AI data centers. Shares of Marvell Technology and Advanced Micro Devices climbed 2% and 2.4%. Nvidia rose 1.1% after scaling a fresh all-time high on Wednesday. Investors also weighed Federal Reserve Chair Jerome Powell's remarks during his two-day congressional testimony, where he reiterated a wait-and-see approach toward interest rate cuts. Powell "maintaining a cautious stance is understandable, particularly when you've still got uncertainty around these trade tariffs while the negotiation period is going on," said Daniel Coatsworth, investment analyst at AJ Bell. Trump has intensified his attacks on Powell for not cutting rates sooner. On Wednesday, the president labeled Powell as "terrible", saying he had narrowed down his choice to three or four candidates to potentially replace the Federal Reserve Chair. The move could affect the central bank's independence at a time when policymakers are striving to balance the risk of slowing growth and higher inflation, as Trump's wide-ranging tariffs and geopolitical turmoil threaten to drive up prices in the short-term. Traders are pricing in about 63 basis points worth of rate cuts by the end of 2025, with expectations for the first cut to be seen in September. For the day, the focus is on the Commerce Department's final take on first-quarter GDP, as well as durable goods data for May and initial jobless claims data, all due at 08:30 a.m. ET. At 07:04 a.m. ET, Dow E-minis were up 116 points, or 0.27% and S&P 500 E-minis were up 19.5 points, or 0.32%. Nasdaq 100 E-minis were up 96.5 points, or 0.43%. Shares of sportswear company Nike edged up 0.6% ahead of its quarterly results due before the opening bell. Some of the central bank officials scheduled to speak later in the day include Fed Chicago President Austan Goolsbee, Fed Richmond President Thomas Barkin, Fed Cleveland President Beth Hammack, Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari. On Friday, the Personal Consumption Expenditures (PCE) report - the Fed's preferred gauge of inflation - will be scrutinized to ascertain tariff-induced price changes in the U.S. economy. (Reporting by Kanchana Chakravarty and Nikhil Sharma in Bengaluru; Editing by Devika Syamnath)