Tech bounceback lifts Nasdaq futures, Dow slips
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
FedEx leaps after upbeat profit forecast
Rivian up on Volkswagen joint venture
Southwest Airlines falls after results
Futures: Dow down 0.17%, S&P 500 flat, Nasdaq up 0.13%
Updated at 7:11 a.m. ET/1111 GMT
By Ankika Biswas and Lisa Pauline Mattackal
June 26 (Reuters) - Futures for the Nasdaqadvanced on Wednesday as Nvidia and other chip stocks continued to regain momentum, while those tracking the Dow edged lower aheadof a key inflation reading this week.
AI chip favorite NvidiaNVDA.O climbed 2.1% premarket, continuing its gain after a three-session selloff, though still below the record high level touched last week.
Other chip stocksBroadcom AVGO.O, Taiwan Semiconductor Manufacturing TSM.N and Arm Holdings ARM.O were up between 0.1% and 0.9%, whileMicron Technology MU.O rose2.8% ahead of its quarterly results, due after the closing bell.
"If investors remain so convinced of the chip designer's future that they drive it up to new highs ... it will restore the company's status as the stock market's bullish bellwether," said David Morrison, senior market analyst at Trade Nation.
"If not, then further weakness could easily sour sentiment in general, even if there is perceived value outside the tech leaders."
Meanwhile, deliverygiant FedEx FDX.N jumped 13.4% after forecasting fiscal 2025 profit above estimates on Tuesday.
The tech-heavy Nasdaq .IXIC, the S&P 500 information technology index .SPLRCT and the PhiladelphiaSE Semiconductor index .SOX all notched gains of more than 1% on Tuesday.
Tuesday's gains marked a rebound for those sectors which have been the primary reasons for Wall Street's rise to fresh record highs, as enthusiasm around artificial intelligence-linked companies offset concerns about higher-for-longer U.S. interest rates.
Several economic data releases are awaited this week, with Friday's release of the personal consumption expenditures price index - the Federal Reserve's preferred inflation gauge - the most closely watched.
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.
Megacaps Apple AAPL.O and Amazon.com AMZN.O gained 0.2% and 0.9% on Wednesday.
The AI stocks' rallyis expected to leave an outsized imprint on the annual reconstitutionof the Russell indexes on Friday, typically one of the busiest trading days of the year.
At 7:11 a.m. ET, Dow e-minis 1YMcv1 were down 66 points, or 0.17%, S&P 500 e-minis EScv1 were down 0.75 points, or 0.01%, and Nasdaq 100 e-minis NQcv1 were up 26.5 points, or 0.13%.
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.
Shares of Southwest Airlines LUV.N dropped 3.2% after the company cutforecasts for second-quarter unit revenue, citing uneven travel demand.
Albemarle ALB.N rose 2.7% as the world's largest lithium producer plans to hold more auctions for the metal used in EV batteries.
Shares of major U.S. banks including JPMorgan Chase JPM.N, Citigroup C.N, and Bank of America BAC.N slipped between 0.3% and 0.6% ahead of the Federal Reserve's release of results from its annual banking sector stress test.
Nvidia slides from record high but remains up 140% this year https://reut.rs/4eFvYwe
Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
