US Stock Futures Climb as Micron Boosts AI Optimism; Investors Eye GDP and Fed Signals

U.S. stock futures advanced on Thursday, buoyed by strong earnings from Micron Technology that sparked investor optimism about the AI sector. Micron’s positive revenue outlook for the fourth quarter helped lift broader sentiment in the tech space, particularly among chipmakers. As of early trading, futures tied to the Dow, S&P 500, and Nasdaq rose 0.27%, 0.33%, and 0.43% respectively, indicating Wall Street could open near record highs.

Micron’s shares surged 2% in premarket trading after it projected better-than-expected revenue driven by increasing demand for chips used in AI data centers. This optimism extended to other semiconductor stocks, with Marvell Technology and AMD rising over 2%, while Nvidia gained 1.1% after hitting a new all-time high. The rally highlights growing market enthusiasm around AI-related technologies as a driver of economic and market growth.

Amid the tech-driven gains, market participants are also closely watching macroeconomic indicators. Key data from the Commerce Department, including the final GDP estimate for Q1, durable goods orders for May, and weekly jobless claims, are due at 08:30 a.m. ET. These indicators are expected to offer insights into the strength of the U.S. economy and potentially influence Federal Reserve policy direction.

Federal Reserve Chair Jerome Powell continued to emphasize a cautious, data-dependent approach to rate cuts during his congressional testimony. Despite pressure from President Donald Trump, who criticized Powell’s leadership and hinted at replacing him, the Fed remains focused on navigating inflation risks amid global trade tensions and tariff uncertainties. Investors are pricing in modest rate cuts by year-end, with expectations leaning toward a first cut in September.

Geopolitical developments also added to the market narrative. President Trump announced plans for diplomatic talks with Iran aimed at curbing its nuclear ambitions, potentially easing tensions in the Middle East. Meanwhile, other Fed officials are set to speak later in the day, and Friday’s PCE inflation report will be crucial in assessing the economic impact of recent tariffs. Investors remain alert to both economic signals and policy shifts that could influence market direction in the coming weeks.

Source: Reuters