(Reuters) – Nasdaq futures climbed on Tuesday as Nvidia and other AI-related stocks firmed after a sharp sell-off, while investors waited for fresh clues on the direction of policy monetary based on remarks from U.S. Federal Reserve officials this week.
AI chip company Nvidia rose 2.1% premarket. Chip stocks Micron Technology, Broadcom and Qualcomm also regained some lost ground and rose more than 1% each, while AI-optimized server maker Super Micro Computer rose 2%.
“There has certainly been strong speculation about Nvidia’s exponential rise since the start of last year… strong rebounds have often been followed by strong sell-offs,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“It’s too early to call an end to the Nvidia craze, but given the high level of speculation surrounding the stock, we’ll see price action get worse before it gets better.”
The tech-heavy Nasdaq posted its biggest one-day fall of more than 1% since late April as investors pulled out of AI stocks and turned to other sectors , which helped the Dow Jones reach a one-month high on Monday. .
Earlier this week, investors invested in sectors such as utilities, consumer staples and energy, which have underperformed technology and technology-adjacent stocks this year due to continued optimism in AI.
Even though the Fed’s favorite inflation gauge, Friday’s Personal Consumption Expenditures (PCE) Price Index report, tops the watch list, investors will also be keeping an eye on the data on consumer confidence during the day.
Fed Board Governors Michelle Bowman and Lisa Cook, voting members of the committee this year, are scheduled to speak Tuesday.
Market participants estimate a 61% chance of a 25 basis point interest rate cut in September and are eyeing about two cuts by the end of the year, according to FedWatch data from LSEG.
Numerous corporate quarterly results are also scheduled for the day, with cruise line Carnival Corp expected before the market opens and package delivery giant FedEx after the bell.
As of 5:33 a.m. ET, the Dow e-minis were down 14 points, or 0.04%, the S&P 500 e-minis were up 9.75 points, or 0.18%, and the e-minis were up 9.75 points, or 0.18%. -minis of the Nasdaq 100 were up 83 points, or 0.42%.
Among other major pre-market players, Spirit AeroSystems fell 5%. A report shows Boeing has proposed acquiring the aircraft fuselage maker in a mostly stock-financed deal that values its main supplier at about $35 per share.
Trump Media & Technology Group rose 14.2%, poised to extend Monday’s strong gains. The company had announced that it expected proceeds of $69.4 million from the cash exercise of the warrants.
(Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
