US stock futures rose as Micron and Qualcomm helped boost confidence in the AI trade following several tough days for tech stocks.
Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) hovered above the flat line. Futures attached to the tech-heavy Nasdaq 100 (NQ=F) rose 2%.
Micron (MU) posted a sizable earnings beat and offered a rosy outlook on Wednesday after the bell. Shares of the company surged more than 10%.
Qualcomm’s (QCOM) after-hours announcement that it would break into the data center market and expects to see surging revenue from its AI business also lifted its stock.
Investors are closely watching the AI trade as tech has been sagging this week. Wall Street is scrutinizing lofty AI valuations and spending, alongside the chance of interest rate hikes from the Federal Reserve.
The policy path of the Federal Reserve will be back in the spotlight on Thursday when investors will receive May’s reading of the central bank’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index.
At the June meeting of the Federal Reserve, almost half of officials indicated that they expect to see at least one interest rate hike this year.
