U.S. stock index futures rose in evening deals on Wednesday, with technology stocks rising in tow of memory chip maker Micron after it clocked strong earnings.
Overall gains were limited after Wall Street clocked a negative session, with focus turning to an upcoming address by Federal Reserve Chair Jerome Powell.
Still, U.S. stock benchmarks remained in sight of record highs after logging strong gains in the wake of a bumper interest rate cut by the Fed last week.
S&P 500 Futures rose 0.1% to 5,783.75 points, while Nasdaq 100 Futures rose 0.3% to 20,243.25 points by 19:21 ET (23:21 GMT). Dow Jones Futures fell 0.1% to 42,255.0 points.
Micron surges on strong AI-fueled earnings, tech follows
Shares of Micron Technology Inc (NASDAQ:MU) rallied more than 14% in aftermarket trade, after the memory chip maker clocked stronger-than-expected quarterly earnings and provided a blowout forecast for the current quarter on strong artificial intelligence demand.
The firm is one of the biggest memory chip makers in the world, and said it was benefiting greatly from robust AI demand, which ramped up sales of its high-bandwidth memory chips.
Gains in Micron spilled over into broader technology stocks, especially chipmakers. AI darling NVIDIA Corporation (NASDAQ:NVDA) rose nearly 1%, while peers Applied Materials Inc (NASDAQ:AMAT) and Western Digital Corporation (NASDAQ:WDC) surged 4% and 6.5%, respectively.
Powell speech, PCE data on tap
Focus this week was squarely on more cues from the Fed following last week’s rate cut, with Chair Jerome Powell set to speak on Thursday.
Several other Fed officials spoke through the week, mostly in support of last week’s 50 basis point cut. But they also warned that rates may not fall as sharply in the coming meetings.
PCE price index data- the Fed’s preferred inflation gauge- is due on Friday, and is likely to factor into the central bank’s plans for rates.
Wall Street indexes rallied to record highs after the Fed cut rates and flagged the beginning of an easing cycle which analysts forecast will bring down rates by at least 125 basis points.
But gains slowed in recent sessions, amid some uncertainty over the Fed’s next move.
The S&P 500 fell 0.2% to 5,722.26 points on Wednesday. The NASDAQ Composite ended flat at 18,084.51 points while the Dow Jones Industrial Average fell 0.7% to 41,914.75 points.
Aramark surges on report of Sodexo acquisition interest
Among major aftermarket movers, food catering firm Aramark Holdings (NYSE:ARMK) rallied over 10% to a more-than three-year high on a report that French rival Sodexo SA (EPA:EXHO) was considering a takeover.
H B Fuller Company (NYSE:FUL) fell 9% after it cut its annual guidance, while Concentrix Corp (NASDAQ:CNXC) slid 11% on weak quarterly earnings and guidance.
