US stock futures edge higher as Wall St clocks new highs on Fed hopes

investing.com:

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:NVDA) unveiled its latest line of AI chips earlier this week. Unexpectedly strong earnings from memory chip maker Micron Technology Inc (NASDAQ:MU) also boosted sentiment.

S&P 500 Futures rose 0.15% to 5,310.00 points, while Nasdaq 100 Futures rose 0.16% to 18,591.25 points by 20:33 ET (00:33 GMT). Dow Jones Futures rose 0.1% to 40,255.0 points.

Risk appetite remained upbeat after the Fed kept interest rates steady 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 cutting rates by as soon as June. 

This notion saw investors pile into risk-heavy assets, with equities benefiting the most. 

The S&P 500 rose 0.3% to a record high of 5,241.53 points on Thursday. The NASDAQ Composite rose 0.2% to 16,401.84 points, while the Dow Jones Industrial Average rose 0.7% to close at 39,781.37 points. 

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. 

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