U.S. stock index futures rose sharply on Wednesday evening, with technology and chipmaking shares rallying after hours following strong guidance from Micron and Qualcomm.
S&P 500 Futures rose 0.8% to 7,415 points by 0430 ET. Nasdaq 100 Futures surged 2.2% to 30,174 points, while Dow Jones Futures rose 0.08% to 52,317.0 points.
Futures rose after a mostly negative session on Wall Street, where investors remained skittish towards tech following a major wipeout in the sector this week.
Focus now turns to upcoming inflation and gross domestic product data due on Thursday for more cues on the economy and interest rates.
Micron, Qualcomm surge on strong AI-fueled guidance; chipmakers rally
Micron Technology Inc. (NASDAQ:MU) surged more than 16% in late trading after the memory-chip maker delivered blowout quarterly earnings and issued guidance that topped even the most bullish forecasts.
The results offered a reprieve for investors rattled by this week’s sharp selloff in growth stocks, where stretched AI-driven valuations had collided with fears over higher borrowing costs under a new Federal Reserve chair.
Micron, long viewed as a bellwether for the semiconductor industry, pointed to robust demand from artificial intelligence workloads and hyperscale data centers.
That appetite is expected to keep memory supplies tight and prices elevated, raising hopes that the sector’s massive capital expenditures will translate into tangible returns rather than just ballooning debt loads.
The upbeat outlook helped soothe nerves in a market that had fretted over whether investors would continue to underwrite the AI boom through debt issuance at a time when rising rates dim the shine of growth names.
The relief rippled across Asia, where shares of Micron’s South Korean rivals SK Hynix Inc. and Samsung Electronics Co. rebounded sharply in Thursday trade after being at the epicenter of the rout earlier this week.
Optimism was further bolstered by Qualcomm Inc. (NASDAQ:QCOM), which projected $15 billion in data center sales by 2029, sending its stock up 13.3%.
For now, Micron’s stellar quarter has bought the sector breathing room, easing concerns that AI’s capex binge might not deliver commensurate returns.
But with monetary policy tightening, the question remains whether investors will continue to bankroll growth names whose valuations are already priced for perfection.
Wall St clocks mixed close; PCE data awaited
Wall Street indexes clocked a mixed close on Wednesday as investors remained wary of tech after a major rout in the sector earlier this week.
A pivot into more economically sensitive shares boosted the Dow Jones Industrial Average, which rose 0.35%, while the NASDAQ Composite and S&P 500 fell 0.4% and 0.1%, respectively.
Focus now turns to upcoming PCE price index data for May, which is due on Thursday. The print is the Federal Reserve’s preferred inflation gauge, and will be closely watched for more cues on interest rates.
The PCE print comes amid growing concerns that the Fed will leave interest rates unchanged, or even hike them this year over fears of sticky inflation.
Core PCE inflation is expected to read at 3.4%, well above the Fed’s 2% annual target.
Beyond the PCE data, a final reading on first-quarter GDP and weekly jobless claims data are also due on Thursday.
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