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©Reuters.
Investing.com — U.S. stock index futures rose slightly in overnight trading Thursday, extending their gains after Wall Street hit a new high in two sessions on expectations for a rate cut from the Federal Reserve.
Optimism about growing demand for artificial intelligence also kept large-cap technology stocks buoyant after market darling NVIDIA Corporation (NASDAQ:) announced its latest line of AI chips earlier this week. Surprisingly strong earnings from memory chip maker Micron Technology (NASDAQ:) also boosted sentiment.
By 20:33 ET (12:33 p.m. Japan time), it had risen 0.15% to 5,310.00 points and 0.16% to 18,591.25 points. It rose by 0.1% to 40,255.0 points.
Expectations for Fed rate cuts remain
Risk appetite remained strong after the Fed remained firm on its outlook for at least three rate cuts this year despite recent inflation persistence.
Comments from Federal Reserve Chairman Jerome Powell that inflation was on track for the Fed’s 2% annual target also raised expectations that the central bank would initiate policy action.
This idea led investors to pile into riskier assets, with stocks benefiting the most.
It rose 0.3% on Thursday to hit a record high of 5,241.53 points. It closed 0.2% higher at 16,401.84 points and 0.7% higher at 39,781.37 points.
Apple sinks under Justice Department lawsuit as technology boosts with AI cheers
Large-cap technology stocks were a key boost for Wall Street on Thursday, with Nvidia extending its gains by rising 1.2% after announcing plans to ship new AI chips in late 2024.
Adding to the hype around AI, Micron soared more than 14% after posting a surprise profit in the December quarter and also forecast strong earnings on AI-powered demand.
Meanwhile, iPhone maker Apple (NASDAQ:) fell 4% after the Justice Department filed antitrust charges against the company. However, Apple’s stock price stabilized in aftermarket trading.
FedEx leads aftermarket profits; Nike sink
Among the big aftermarket players, FedEx Corp. (NYSE:) soared nearly 13% in aftermarket trading as the shipping and logistics company posted better-than-expected earnings and also approved a $5 billion share buyback.peer united parcel Service Inc. (NYSE:) rose 3.3%.
Sportswear maker Nike (NYSE:) fell 5.6% despite reporting better-than-expected quarterly profits.that peer lululemon athletica Inc (NASDAQ:) fell 11% after the company gave a weak outlook for full-year earnings.
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