Nasdaq futures jumped 1% on Friday, driven by a rebound in megacap tech and chip stocks.
Major tech companies like Apple, Nvidia, Alphabet, Microsoft, Meta, Amazon, and Tesla saw premarket gains between 0.7% and 2.2%, while chip stocks like Intel, Broadcom, Qualcomm, Micron, and Arm Holdings rose around 2%.
The recent selloff in tech stocks, sparked by disappointing earnings from Alphabet and Tesla, had led to a decline in the S&P 500 and Nasdaq.
However, investors are now optimistic, hoping for further signs of easing inflation from the upcoming personal consumption expenditures (PCE) price index data.
This data is the Federal Reserve’s preferred measure of inflation and is expected to show a modest increase of 0.1% for June.
With signs of cooling inflation and a weakening labor market, traders are betting on early interest rate cuts, with expectations of two cuts by December.
The PCE data, due at 8:30 a.m. ET, will be closely watched for confirmation.
The rise in tech and chip stocks reflects growing confidence that inflation may be under control, potentially leading to a more favorable economic environment.
(REUTERS)