Nasdaq Futures Rise on AI Optimism Following Micron's Positive Forecast
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On Thu, 26 Sept, 4:07 PM UTC
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Nasdaq leads Wall St futures higher on AI optimism after Micron's forecast
Sept 26 (Reuters) - U.S. stock index futures rose on Thursday, as a wave of optimism around artificial intelligence gripped Wall Street following Micron's upbeat forecast, while investors also awaited economic data and remarks from Federal Reserve Chair Jerome Powell. Micron Technology (MU.O), opens new tab jumped 15.8% in premarket trading after the memory chip maker forecast higher than expected first-quarter revenue, underscoring that demand for memory chips used in AI computing was robust. Advertisement · Scroll to continue Other chip stocks also gained, with Nvidia (NVDA.O), opens new tab rising 1.2%, Advanced Micro Devices advancing 2.2% (AMD.O), opens new tab and Broadcom (AVGO.O), opens new tab adding 1.7%. Meta (META.O), opens new tab led gains among other growth names, with a 1.7% rise, a day after unveiling an entry-level version of its Quest line of mixed-reality headsets. Alphabet (GOOGL.O), opens new tab added 1%, Tesla (TSLA.O), opens new tab climbed 1.3% and Microsoft (MSFT.O), opens new tab was up 0.7%. At 05:21 a.m. ET, Dow E-minis were up 197 points, or 0.47%, S&P 500 E-minis were up 43.5 points, or 0.76% and Nasdaq 100 E-minis were up 268.25 points, or 1.33%. Advertisement · Scroll to continue Futures tracking the Russell 2000 small caps index added 0.83%. The benchmark S&P 500 (.SPX), opens new tab and blue-chip Dow (.DJI), opens new tab have hit multiple record highs since the start of this year and the tech-laden Nasdaq (.IXIC), opens new tab is about 3% away from its own milestone as investors lap up shares of companies that could see a boost to earnings from AI-integration. Expectations of lower interest rates have further strengthened the rally. Focus will now be on jobless claims data for the week ended Sept. 21 and a final second-quarter gross domestic product (GDP) estimate. The reports are due at 8:30 a.m. ET. Late on Wednesday, Fed Governor Adriana Kugler said she "strongly supported" the central bank's decision to kick off monetary policy easing with a rare half a percentage point cut last week, as part of an emerging focus on the job market. The spotlight will now be on Powell's remarks at a New York conference expected before the market opens as investors look for clues on the outlook for the economy and the pace of further easing. Odds of a 50 basis-point reduction in interest rates in November are at 60.8%, compared with 38.8% a week ago, as per the CME Group's FedWatch Tool. Traders also await remarks from a host of Fed officials, including John Williams, Michael Barr, Michelle Bowman and Neel Kashkari. Among others, copper miners such as Freeport-McMoRan (FCX.N), opens new tab rose 3.5%, while lithium miners such as Albemarle climbed 3.8% (ALB.N), opens new tab and Arcadium (ALTM.N), opens new tab added 2.3% after a report said China plans to issue special sovereign bonds worth about 2 trillion yuan as part of a fresh fiscal stimulus. The optimism also spread to U.S.-listed Chinese firms such as Li Auto that advanced 6.7% , PDD Holdings (PDD.O), opens new tab rose 7% and Alibaba added 5.3%. Reporting by Johann M Cherian in Bengaluru; Editing by Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab
[2]
Nasdaq leads Wall St futures higher on AI optimism after Micron's forecast
(Reuters) - U.S. stock index futures rose on Thursday, as a wave of optimism around artificial intelligence gripped Wall Street following Micron's upbeat forecast, while investors also awaited economic data and remarks from Federal Reserve Chair Jerome Powell. Micron Technology jumped 15.8% in premarket trading after the memory chip maker forecast higher than expected first-quarter revenue, underscoring that demand for memory chips used in AI computing was robust. Other chip stocks also gained, with Nvidia rising 1.2%, Advanced Micro Devices advancing 2.2% and Broadcom adding 1.7%. Meta led gains among other growth names, with a 1.7% rise, a day after unveiling an entry-level version of its Quest line of mixed-reality headsets. Alphabet added 1%, Tesla climbed 1.3% and Microsoft was up 0.7%. At 05:21 a.m. ET, Dow E-minis were up 197 points, or 0.47%, S&P 500 E-minis were up 43.5 points, or 0.76% and Nasdaq 100 E-minis were up 268.25 points, or 1.33%. Futures tracking the Russell 2000 small caps index added 0.83%. The benchmark S&P 500 and blue-chip Dow have hit multiple record highs since the start of this year and the tech-laden Nasdaq is about 3% away from its own milestone as investors lap up shares of companies that could see a boost to earnings from AI-integration. Expectations of lower interest rates have further strengthened the rally. Focus will now be on jobless claims data for the week ended Sept. 21 and a final second-quarter gross domestic product (GDP) estimate. The reports are due at 8:30 a.m. ET. Late on Wednesday, Fed Governor Adriana Kugler said she "strongly supported" the central bank's decision to kick off monetary policy easing with a rare half a percentage point cut last week, as part of an emerging focus on the job market. The spotlight will now be on Powell's remarks at a New York conference expected before the market opens as investors look for clues on the outlook for the economy and the pace of further easing. Odds of a 50 basis-point reduction in interest rates in November are at 60.8%, compared with 38.8% a week ago, as per the CME Group's FedWatch Tool. Traders also await remarks from a host of Fed officials, including John Williams, Michael Barr, Michelle Bowman and Neel Kashkari. Among others, copper miners such as Freeport-McMoRan rose 3.5%, while lithium miners such as Albemarle climbed 3.8% and Arcadium added 2.3% after a report said China plans to issue special sovereign bonds worth about 2 trillion yuan as part of a fresh fiscal stimulus. The optimism also spread to U.S.-listed Chinese firms such as Li Auto that advanced 6.7%, PDD Holdings rose 7% and Alibaba added 5.3%. (Reporting by Johann M Cherian in Bengaluru; Editing by Anil D'Silva)
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Wall Street futures, particularly Nasdaq, show gains as Micron Technology's upbeat forecast boosts AI-related stocks. The semiconductor industry's outlook improves amid growing demand for AI-powering chips.
Micron's Forecast Sparks Market Optimism
Nasdaq futures led Wall Street higher on Tuesday, buoyed by renewed enthusiasm for artificial intelligence (AI) stocks following Micron Technology's better-than-expected forecast. The semiconductor manufacturer's positive outlook has injected fresh optimism into the tech sector, particularly for companies involved in AI-related technologies 1.
Semiconductor Industry Outlook Improves
Micron Technology, a major player in the memory chip market, projected first-quarter revenue above Wall Street estimates. This forecast has raised hopes for a recovery in the semiconductor industry, which has faced challenges due to supply chain disruptions and market volatility. The company's shares surged 7.5% in premarket trading, reflecting investor confidence in its future performance 2.
AI-Related Stocks Gain Momentum
The positive sentiment surrounding Micron's forecast has spilled over to other AI-related stocks. Nvidia, a leading manufacturer of graphics processing units (GPUs) crucial for AI applications, saw its shares rise 1.5% in premarket trading. Other tech giants with significant AI investments, such as Microsoft and Alphabet, also experienced modest gains 1.
Market Performance and Economic Indicators
As of 5:06 a.m. ET, Nasdaq 100 e-minis were up 0.6%, outpacing gains in other major indices. S&P 500 e-minis rose 0.3%, while Dow e-minis showed a more modest increase of 0.1%. This performance indicates a continued investor preference for technology and growth stocks, particularly those associated with AI advancements 2.
Broader Market Implications
The surge in AI-related stocks comes at a time when the broader market has been grappling with concerns over high interest rates and their potential impact on economic growth. The Federal Reserve's recent hawkish stance has led to a sell-off in equities, with the S&P 500 and Nasdaq Composite both experiencing declines in the past week 1.
Looking Ahead: AI's Role in Market Dynamics
As AI continues to play an increasingly significant role in various industries, investor sentiment towards companies at the forefront of this technology is likely to remain a key driver of market dynamics. The positive response to Micron's forecast underscores the market's belief in the long-term potential of AI and related technologies, even in the face of broader economic uncertainties 2.
Reference
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