Nasdaq, S&P 500 futures rise as tech recovery strengthens
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Futures: Dow flat, S&P 500 up 0.18%, Nasdaq up 0.32%
June 26 (Reuters) -Nasdaq and S&P 500 futures advanced on Wednesday as Nvidia and other chip stocks continued to regain momentum ahead of a key inflation reading this week, while FedEx shares soared on the back of an upbeat annual profit forecast.
AI chip firm Nvidia NVDA.O climbed 2.2% premarket, recovering from recent losses, while semiconductor stocks Broadcom AVGO.O, Taiwan Semiconductor Manufacturing TSM.N and Arm Holdings ARM.O gained 1% each.
Micron Technology MU.O also jumped 3% ahead of its quarterly results, due after the closing bell.
The tech-heavy Nasdaq .IXIC, S&P 500 information technology index .SPLRCT and Philadelphia SE Semiconductor index .SOX all notched gains of more than 1% on Tuesday.
The AI stocks rally is expected to leave an outsized imprint on the final reconstitution of the Russell indexes on Friday.
Megacaps such as Meta Platforms META.O and Alphabet GOOGL.O edged up in premarket trading after their more than 2% jump on Tuesday. Apple AAPL.O and Amazon.com AMZN.O also gained on Wednesday.
At 5:31 a.m. ET, Dow e-minis 1YMcv1 were down 6 points, or 0.02%, S&P 500 e-minis EScv1 were up 9.75 points, or 0.18%, and Nasdaq 100 e-minis NQcv1 were up 64.5 points, or 0.32%.
Investors also braced for Friday's personal consumption expenditures price index - the Federal Reserve's preferred inflation gauge. With the Fed projecting only one interest rate cut likely in December, all eyes will be on whether the data shows an expected moderation in price pressures.
Market participants see a near 60% chance of a 25-basis point rate cut in September, and about two cuts by the year end, LSEG's FedWatch data showed.
Delivery giant FedEx FDX.N jumped 13.5% after forecasting fiscal 2025 profit above estimates.
Rivian RIVN.O soared 37% as German automaker Volkswagen VOWG_p.DE said it will invest up to $5 billion in the U.S. electric-vehicle maker as part of a new, equally controlled joint venture.
Albemarle ALB.N rose 2.5% as the world's largest lithium producer plans to hold more auctions for the metal used in EV batteries.
Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta
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