U.S. stock-index futures climbed on Thursday, led by a broad advance in technology and semiconductor names after standout corporate results reignited interest in the artificial intelligence trade. The move in futures came as markets prepared for a key inflation release and tracked a further pullback in crude oil prices.
Futures and sector moves
By 04:30 ET, S&P 500 futures were up 0.8% at 7,415 points, Nasdaq 100 futures had jumped 2.2% to 30,174 points and Dow Jones futures edged higher by 0.08% to 52,317.0 points. The gains followed a mixed cash session on Wall Street earlier in the week, when technology stocks had suffered a sharp selloff before sentiment swung back in the wake of results from two major players in the AI ecosystem.
Micron Technology and Qualcomm together helped drive a renewed willingness among investors to buy into AI-related themes when corporate fundamentals support lofty valuations. The episode also underscored how closely the market’s technology performance can be tied to outcomes from a relatively small group of influential firms.
Inflation report on tap
Market participants are focused on the Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation gauge, which is due at 08:30 ET. The reading could be an important input into expectations for the path of interest rates. A hotter-than-expected outcome would raise concern that policymakers could consider further rate increases, while a softer print would bolster hopes that borrowing costs may move lower.
Interest-rate expectations have broad market implications: they influence mortgage rates, credit charges and the valuation of growth-oriented stocks. Within that dynamic, technology tends to fare better when rates are seen as heading down, because lower rates make future earnings streams more valuable. The PCE report is therefore viewed as one of the most important potential market catalysts this week, given recent unease that inflation may be proving more persistent than desired.
Oil prices slide
Oil extended declines for a fourth straight session, slipping back to levels last observed before the U.S.-Iran conflict. Brent crude futures fell 1.8% to $72.42 per barrel, while U.S. West Texas Intermediate crude dropped 1.5% to $69.27 per barrel. Both contracts have now largely unwound the gains that were driven by fears of supply disruptions related to the conflict.
Market participants attributed the pullback to easing concerns about Middle East flows as shipping through the Strait of Hormuz improved and diplomatic discussions made progress. Prices also fell by nearly 4% in the previous session, demonstrating how fast risk premia tied to geopolitical tensions can evaporate once traders gain confidence about supply conditions.
Lower crude costs may help blunt inflation pressures and support consumer spending, although they could weigh on energy-sector earnings if prices remain under pressure.
Micron posts blockbuster quarter
Micron shares surged nearly 20% in premarket trading after the memory-chip maker reported fiscal third-quarter results that substantially outpaced Wall Street expectations. The company reported $41.46 billion in revenue for the quarter, more than four times the sales it recorded a year earlier and above analyst estimates of $35.84 billion. Adjusted earnings per share were $25.11, also well ahead of forecasts.
The company’s data-center business was the standout, with revenue jumping to $11.5 billion, a rise of more than sevenfold as demand for memory used in AI applications climbed sharply. Profitability showed a marked improvement: gross margins expanded to 84.9% from 39% a year prior.
Those outcomes prompted a broad rally across semiconductor stocks worldwide and reinforced the view that infrastructure spending related to AI remains a powerful demand driver. For investors weighing whether AI spending is slowing, Micron’s quarter provided strong evidence that key pockets of demand remain robust.
Qualcomm bolsters outlook for AI demand
Qualcomm added to the AI-led optimism after forecasting $15 billion in annual sales from its data-center business by 2029. The chip designer’s shares rose more than 12% on the news, as investors interpreted the guidance as confirmation that demand for AI infrastructure has room to grow beyond smartphone-related markets.
Traditionally known for mobile-phone chips, Qualcomm is pushing into higher-growth areas such as artificial intelligence, cloud computing and data centers. Its projection for data-center sales underlines the company’s expectation that AI spending will remain a persistent revenue stream over the coming years.
Implications for investors
The twin corporate updates from Micron and Qualcomm highlighted how earnings outcomes and forward-looking guidance from a small set of technology suppliers can sway sentiment across the sector and broader markets. Retail investors in particular may note the speed with which strong results from a few companies can lift valuations across the technology complex.
Meanwhile, upcoming inflation data and the pace of change in crude prices are likely to shape the next moves for rates-sensitive assets and resource-sector earnings. Together, these developments are set to influence market direction in the near term.
Market snapshot
- S&P 500 futures: +0.8% to 7,415 points by 04:30 ET
- Nasdaq 100 futures: +2.2% to 30,174 points by 04:30 ET
- Dow Jones futures: +0.08% to 52,317.0 points by 04:30 ET
- Brent crude: -1.8% to $72.42 per barrel
- WTI crude: -1.5% to $69.27 per barrel
These figures reflect trading conditions in the early premarket session and are subject to change as the U.S. trading day progresses and new economic data are released.