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Investing.com — U.S. stock index futures rose slightly in overnight trading Monday, ending a negative session on Wall Street as markets remained mostly nervous ahead of inflation and further cues from the Federal Reserve. Afterwards, it recovered somewhat.
The rally in major artificial intelligence stocks spilled over into aftermarket trading as investors remained optimistic about the fast-growing sector.
But Wall Street now appears to have cooled down after rallying to record highs last week on the back of a seemingly dovish Federal Reserve. Regulatory measures against some large technology companies also weighed on sentiment.
By 20:04 ET (00:04 GMT), it rose 0.1% to 5,283.50 points and rose 0.1% to 18,539.75 points. It rose by 0.1% to 39,722.0 points.
PCE Inflation, Fed Speakers Participate
The statistics, the Fed’s preferred measure of inflation, are expected to be released this Friday, when markets close. But given that the Fed has warned that its 2024 rate cut will depend largely on whether inflation continues toward its 2% annual target, we’ll remain tuned for further clues about the path of inflation. will be done.
In addition to the inflation statistics, a series of Fed officials will also speak this week, with a particular focus on members of the Federal Open Market Committee, both of whom are scheduled to speak separately on Friday.
The Fed signaled last week that it would cut interest rates by 75 basis points in 2024, but markets remained wary of the possibility that that outlook could change, especially if inflation soars. This idea fueled losses on Wall Street.
It closed 0.3% lower at 16,484.47 points on Monday and fell 0.3% to 5,218.19 points. It fell 0.4% to 39,313.64 points.
AI rally continues, with Nvidia eyeing new record highs
Investors continued to buy into AI stocks as broader Wall Street indexes cooled and hype about the growth sector persisted.
Nvidia Corporation (NASDAQ:), the market’s most popular stock, rose 0.4% to $953.81 in aftermarket trading, coming close to surpassing its all-time high set in early March.
Memory chip maker Micron Technology (NASDAQ:) rose 1% after closing at a record high. Mizuho raised its price target for the company on improving prospects for AI demand, particularly high-bandwidth memory chips. Micron recently reported a surprise quarterly profit on AI-related sales, and the chipmaker also revised up its sales forecast for this year.
Super Microcomputer (NASDAQ:) rose 1.5% after rising more than 7% during the session after JPMorgan rated the server maker a “buy.”
