S&P 500 Futures Edge Higher as Investors Await Fed Decision, SpaceX Extends Rally
U.S. stock futures traded cautiously higher on Wednesday as investors turned their attention to the Federal Reserve’s latest interest rate decision, a key event expected to shape market sentiment in the coming months. Futures linked to the S&P 500 gained 0.1%, while Nasdaq-100 futures advanced 0.6%, supported by strength in technology stocks. Dow futures, however, remained largely unchanged as traders adopted a wait-and-see approach ahead of the central bank’s announcement.
One of the biggest market movers was SpaceX, whose shares surged 3.5% in premarket trading, extending an impressive rally since its initial public offering last week. The aerospace company’s stock has climbed roughly 50% from its IPO price of $135, pushing its market valuation beyond that of e-commerce giant Amazon. The strong performance reflects growing investor confidence in the space technology sector and appetite for high-growth stocks.
Technology and semiconductor stocks also provided support for the broader market. Dutch chip equipment maker ASML rose 4%, while Intel gained 3% in early trading. The Invesco PHLX Semiconductor ETF climbed 2.3%, highlighting continued enthusiasm around artificial intelligence infrastructure and advanced chip manufacturing. Analysts believe AI-related investments remain a major driver of market momentum despite broader economic uncertainties.
Global markets delivered a mixed but generally positive performance. Japan’s Nikkei 225 reached a fresh record high after rising 0.72%, while South Korea’s Kospi advanced 1.58%. In China, the CSI 300 index gained nearly 1%, although Hong Kong’s Hang Seng slipped 0.7%. European markets were also higher, with the Stoxx 600 index adding 0.3%, reflecting cautious optimism among investors worldwide.
The spotlight remains firmly on the Federal Reserve, which is widely expected to keep interest rates unchanged at a target range of 3.5% to 3.75%. Investors are eager to hear comments from new Fed Chairman Kevin Warsh for clues on the future path of monetary policy. Market strategists believe easing geopolitical tensions between the United States and Iran, combined with cooling oil prices and sustained demand for AI-related investments, could support equities through the second half of the year and help extend the recent stock market rally.
source: cnbc