U.S. stock index futures edged higher during Wednesday evening trading, supported by gains in the technology sector, particularly following a strong earnings report from memory chip giant Micron Technology.
However, overall market gains remained modest, as Wall Street wrapped up the day with a negative session. Investors are now looking ahead to Federal Reserve Chair Jerome Powell’s upcoming speech, which could provide further insight into the Fed’s next moves.
Despite the recent dip, U.S. stock benchmarks are still hovering near record highs, following a surge driven by last week’s significant interest rate cut from the Federal Reserve.
As of 19:21 ET (23:21 GMT), S&P 500 futures inched up 0.1% to 5,783.75 points, while Nasdaq 100 futures gained 0.3%, reaching 20,243.25 points. In contrast, Dow Jones futures dipped slightly by 0.1% to 42,255.0 points.
Micron Leads Tech Surge with Strong AI-Driven Earnings
Micron Technology Inc. (NASDAQ: MU) saw its shares jump more than 14% in after-hours trading, following a better-than-expected earnings report and an optimistic forecast for the current quarter, largely due to strong demand for its high-bandwidth memory chips, fueled by advancements in artificial intelligence.
Micron, one of the world’s largest memory chip manufacturers, noted that surging AI demand has significantly boosted sales, particularly for its cutting-edge memory products. This strong performance reverberated across the broader tech sector, especially among semiconductor stocks.
NVIDIA Corporation (NASDAQ: NVDA), a key player in AI technologies, rose nearly 1%, while other chipmakers like Applied Materials Inc. (NASDAQ: AMAT) and Western Digital Corporation (NASDAQ: WDC) surged 4% and 6.5%, respectively.
Powell’s Speech and PCE Data Awaited
Market attention is now firmly on Thursday’s speech by Fed Chair Jerome Powell, as investors seek more clarity on future monetary policy following last week’s interest rate cut.
Several Federal Reserve officials have spoken throughout the week, mostly supporting the recent 50-basis point rate cut. However, they cautioned that rate reductions may not be as aggressive in upcoming meetings.
Also on the radar is Friday’s Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure, which could influence the central bank’s next steps on interest rates.
The Federal Reserve’s decision to cut rates has driven Wall Street indexes to all-time highs, with analysts predicting further rate reductions amounting to at least 125 basis points. However, recent sessions have seen gains taper off, as uncertainty looms over the Fed’s future actions.
On Wednesday, the S&P 500 closed 0.2% lower at 5,722.26 points, while the NASDAQ Composite remained flat at 18,084.51 points. The Dow Jones Industrial Average dropped 0.7% to 41,914.75 points.
Aramark Soars on Sodexo Takeover Interest
In other notable after-hours movers, shares of food service company Aramark Holdings (NYSE: ARMK) surged more than 10%, hitting a three-year high, after reports surfaced that French competitor Sodexo SA (EPA: EXHO) was exploring a potential acquisition.
Meanwhile, H.B. Fuller Company (NYSE: FUL) slid 9% after the company lowered its annual guidance, and Concentrix Corp (NASDAQ: CNXC) fell 11% due to disappointing quarterly earnings and revised guidance.
