US stock futures rise slightly as AI rally persists; investors await inflation signals

US stock futures rise slightly as AI rally persists; investors await inflation signals

© Reuters.– U.S. stock index futures rose slightly in evening trading Monday, regaining some ground after a negative session on Wall Street, as markets remained largely nervous in anticipation of further signals on inflation and the Federal Reserve.

Gains in top artificial intelligence stocks spilled over into the secondary market as investors remained optimistic about the fast-growing sector.

But Wall Street now appears to be calming after hitting record highs last week thanks to a seemingly dovish Federal Reserve. Regulatory action taken against some of the biggest tech companies also weighed on confidence.

rose 0.1% to 5,283.50 points, while it rose 0.1% to 18,539.75 points as of 8:04 p.m. ET (00:04 GMT). rose 0.1% to 39,722.0 points.

PCE inflation and Fed speakers listening

The data – which is the Fed’s preferred inflation indicator – is expected this Friday, when markets are closed. But the numbers will still be closely watched for other clues about the path of inflation, given that the Fed has warned that any interest rate cut in 2024 would largely depend on how inflation inflation towards its annual target of 2%.

Along with the inflation data, a series of Fed officials are also expected to speak this week, with a particular focus on Federal Open Markets Committee member and , both of whom will deliver separate speeches on Friday.

While the Fed announced last week that it would cut rates by 75 basis points in 2024, markets remained nervous about any potential changes to that outlook, particularly given high inflation. This idea caused some losses on Wall Street.

The price fell 0.3% to 5,218.19 points, while the price closed 0.3% lower at 16,484.47 points on Monday. The fell 0.4% to 39,313.64 points.

AI rally continues, Nvidia keeps record in sight

As broader Wall Street indexes cooled, investors continued to pour into AI-related stocks amid continued hype about the growing sector.

Market darling NVIDIA Corporation (NASDAQ:) rose 0.4% in aftermarket trading to $953.81 and was on pace to break a record high earlier in March.

Memory chip maker Micron Technology Inc (NASDAQ:) rose 1% after closing at a record high. Mizuho raised the company’s target price due to an improving outlook driven by AI demand, particularly for its high-speed memory chips. AI-related sales recently helped Micron post an unexpected quarterly profit, with the chipmaker also raising its sales forecast for the year.

Super Micro Computer Inc (NASDAQ:) rose 1.5% after rising more than 7% during the session, after JPMorgan called the server maker a “buy.”

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