Stock Futures Rebound After Fed Shock Sell-Off as Intel Surges on Apple Chip Deal Talk

U.S. stock futures moved higher on Thursday as Wall Street attempted to recover from a sharp sell-off triggered by renewed concerns over Federal Reserve policy. The previous session’s downturn followed signals that interest rates could rise again in the coming years, shaking investor confidence and dragging equities lower across major indexes.

Futures tied to the S&P 500 rose about 0.9%, while the Nasdaq 100 climbed 1.6%. The Dow Jones Industrial Average also gained roughly 303 points, signaling a broad attempt by investors to stabilize sentiment after Wednesday’s rout.

Tech stocks led the recovery, with Intel jumping 9% after reports of a potential partnership with Apple to design chips in the United States. The rally spilled into the wider semiconductor sector, pushing names like Nvidia up 1.2% and Micron Technology up 4.7%, while the semiconductor ETF surged nearly 4%.

Global markets showed a mixed reaction to the Fed-driven volatility. In Asia, South Korea’s KOSPI and Japan’s Nikkei 225 hit fresh record highs, while Hong Kong’s Hang Seng slipped. Europe’s STOXX 600 also traded lower, reflecting lingering caution across international investors.

Market sentiment remains tightly linked to shifting expectations around the Federal Reserve, where policymakers recently signaled the possibility of future rate hikes amid persistent inflation concerns. Analysts including Sonu Varghese of Carson Group and David Zervos of Jefferies noted that divided Fed views and policy uncertainty are keeping investors on edge as markets adjust to a potentially less accommodative environment.

source: cnbc