© Reuters.
Investing.com– U.S. stock index futures rose slightly in evening deals on Thursday, extending gains after expectations of interest rate cuts by the Federal Reserve saw Wall Street notch two sessions of record highs.
Optimism over growing demand for artificial intelligence also kept heavyweight technology stocks buoyant, after market darling NVIDIA Corporation (NASDAQ:) unveiled its latest line of AI chips earlier this week. Unexpectedly strong earnings from memory chip maker Micron Technology Inc (NASDAQ:) also boosted sentiment.
rose 0.15% to 5,310.00 points, while rose 0.16% to 18,591.25 points by 20:33 ET (00:33 GMT). rose 0.1% to 40,255.0 points.
Fed rate cut hopes remain in play
Risk appetite remained upbeat after the Fed and stuck to its projections for at least three rate cuts this year, despite recent stickiness in inflation.
Comments from Fed Chair Jerome Powell, that inflation remained on a path towards the Fed’s 2% annual target, also ramped up expectations that the central bank will begin .
This notion saw investors pile into risk-heavy assets, with equities benefiting the most.
The rose 0.3% to a record high of 5,241.53 points on Thursday. The rose 0.2% to 16,401.84 points, while the rose 0.7% to close at 39,781.37 points.
Tech boosted by AI cheer, Apple sinks on DOJ suit
Heavyweight technology stocks were a key boost to Wall Street on Thursday, with Nvidia rising 1.2%, extending gains after it said it planned to ship its new AI chips later in 2024.
Adding to hype over AI, Micron surged over 14% after it clocked an unexpected profit in the December quarter, and also forecast strong revenues on AI-fueled demand.
On the other hand, iPhone maker Apple Inc (NASDAQ:) tumbled 4% after the Department of Justice sued the firm over antitrust violations. But Apple’s stock stabilized in aftermarket trade.
Fedex leads aftermarket gains, Nike sinks
Among major aftermarket movers, FedEx Corporation (NYSE:) surged nearly 13% in aftermarket trade as the delivery and logistics firm clocked stronger-than-expected earnings, and also approved a $5 billion share buyback. Peer United Parcel Service Inc (NYSE:) rose 3.3%.
Sportswear maker Nike Inc (NYSE:) sank 5.6% despite stronger-than-expected quarterly earnings. Its peer Lululemon Athletica Inc (NASDAQ:) slid 11% on weak annual revenue guidance.