Investing.com – U.S. stock futures point higher on Thursday, with technology shares leading gains after strong results from Micron and upbeat forecasts from Qualcomm reignited optimism around the artificial intelligence trade.
Investors are also awaiting a key inflation report later in the day that could shape expectations for Federal Reserve interest rates, while oil prices continue to slide as concerns over Middle East supply disruptions fade.
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Futures jump as AI trade rebounds
U.S. stock index futures rose sharply on Wednesday evening, with technology and semiconductor stocks rallying after strong updates from two major players in the AI ecosystem.
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.
The gains followed a mixed session on Wall Street, where investors remained cautious after a sharp selloff in technology shares earlier this week. However, sentiment improved dramatically after Micron posted blockbuster earnings and Qualcomm outlined ambitious growth targets for its AI-related businesses.
The rebound suggests investors remain eager to buy into the AI theme whenever strong fundamentals support the sector’s lofty valuations.
For retail investors, the move highlights how closely market performance remains tied to the outlook for artificial intelligence. Strong results from a handful of key companies can quickly lift sentiment across the broader technology sector.
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PCE inflation report in focus
Investors are now turning their attention to the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, due at 08:30 ET.
The data is important because it could influence expectations for future interest-rate decisions. If inflation comes in hotter than expected, investors may worry that the Fed will consider additional rate hikes. A softer reading, on the other hand, could strengthen hopes that borrowing costs may eventually move lower.
Interest rates affect everything from mortgage payments and credit card costs to stock valuations. Growth-oriented sectors such as technology tend to benefit when rates are expected to fall, while higher rates can put pressure on stock prices by making future earnings less valuable.
For markets, the report could be one of the most important catalysts of the week, especially after recent concerns that inflation may be proving more stubborn than policymakers hoped.
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Oil falls to pre-war levels
Oil prices declined for a fourth consecutive session on Thursday, falling to their lowest levels since before the U.S.-Iran conflict began.
Brent crude futures dropped 1.8% to $72.42 per barrel, while U.S. West Texas Intermediate crude slipped 1.5% to $69.27 per barrel.
Both contracts have now erased nearly all of the gains that were driven by fears of supply disruptions during the conflict. Improving shipping activity through the Strait of Hormuz and continued progress in diplomatic discussions have eased concerns about global oil flows.
Prices also fell nearly 4% during the previous session, underscoring how quickly geopolitical risk premiums can disappear once markets become more confident about supply conditions.
For investors, lower oil prices could help reduce inflation pressures and support consumer spending. However, energy companies may face earnings pressure if crude prices remain under pressure.
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Micron delivers blockbuster quarter
Micron shares surged nearly 20% in premarket trading after the memory-chip maker reported results that far exceeded Wall Street expectations.
The company generated $41.46 billion in fiscal third-quarter revenue, more than four times the level reported a year earlier and well ahead of analyst forecasts of $35.84 billion. Adjusted earnings per share of $25.11 also comfortably topped expectations.
The standout performer was Micron’s data center business, where revenue jumped more than sevenfold to $11.5 billion as demand for AI-related memory chips continued to soar.
Investors were particularly encouraged by a sharp improvement in profitability, with gross margins climbing to 84.9% from 39% a year ago.
The results triggered gains across semiconductor stocks globally and provided fresh evidence that spending on AI infrastructure remains exceptionally strong.
For investors, Micron’s report helps answer a key question that has emerged during the recent tech selloff: whether AI demand is slowing. Based on these results, the answer appears to be no.
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Qualcomm adds to AI optimism
Qualcomm also boosted confidence in the AI trade after forecasting $15 billion in annual sales from its data center business by 2029.
The chip designer’s shares jumped more than 12% as investors welcomed the outlook and viewed it as further evidence that AI spending remains in its early stages.
Historically known for its smartphone chips, Qualcomm has been working to expand into higher-growth markets such as artificial intelligence, cloud computing and data centers.
Its forecast suggests the company expects demand for AI infrastructure to remain strong for years to come, creating new revenue streams beyond its traditional businesses.
For investors, Qualcomm’s guidance reinforces a broader theme emerging from this earnings season: despite concerns over valuations, major technology companies continue to invest heavily in AI, and suppliers throughout the ecosystem are still seeing robust demand.
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