Nasdaq futures saw an uptick on Tuesday as AI-related stocks, including Nvidia, rebounded from recent losses, prompting investors to await further cues on monetary policy from U.S. Federal Reserve officials. Nvidia led the advance, rising 2.1% premarket, while chip stocks Micron Technology, Broadcom, and Qualcomm also regained ground, each up more than 1%. Additionally, AI-optimized server maker Super Micro Computer rose 2%.
Despite the recent selloff in AI stocks, analysts remain cautious about Nvidia’s surge, with speculation surrounding the stock’s exponential rise. The Nasdaq experienced its sharpest one-day decline since late April as investors shifted from AI stocks to other sectors, resulting in the Dow hitting a one-month high on Monday.
Investors have been diversifying into sectors such as utilities, consumer staples, and energy, which have underperformed tech stocks this year amid continued optimism in AI. Attention is also on upcoming economic data, including the personal consumption expenditures (PCE) price index report and consumer confidence data, as well as speeches from Fed Board Governors Michelle Bowman and Lisa Cook. Market participants anticipate a 25-basis point interest rate cut in September, with expectations of further cuts by the end of the year.
Source: Reuters