Stock Futures Rise as Fed Maintains Rate Cut Projections; Micron Boosts Chipmakers
Market Optimism
U.S. stock index futures climbed on Thursday, buoyed by the strong performance of chipmakers like Micron Technology and the Federal Reserve’s commitment to its projected rate cuts for the year. The market reacted positively to the Fed’s decision to keep borrowing costs unchanged, with expectations of three rate cuts by the end of 2024.
Market Response
Wall Street saw a surge on Wednesday, with the S&P 500 hitting a record high, following the Fed’s dovish stance. The CME FedWatch tool indicated a high probability of a rate cut in June, reflecting the market’s confidence in the Fed’s future actions.
Chipmaker Optimism
Micron Technology saw a significant 16.8% jump in pre-market trading after reporting unexpected profits and forecasting strong third-quarter revenue. This positive performance also lifted peers like Intel, Nvidia, and Western Digital, signaling a broader boost in the chipmaker sector.
Market Anticipation
Investors eagerly awaited data on weekly jobless claims and business activity, contributing to the overall market sentiment. Megacap growth and tech stocks showed promising gains in premarket trading, except for Apple, which faced a slight dip due to antitrust concerns.
Current Market Status
At 05:00 a.m. ET, Dow futures were up by 116 points, S&P 500 futures by 21.75 points, and Nasdaq futures by 138.25 points. The market displayed optimism and resilience amidst evolving economic conditions.
