U.S. Stock Futures Rise Ahead of Inflation Indicators
On the evening of Wednesday, stock futures in the U.S. moved upward, prompted by a positive response to Micron Technology’s recent earnings report. Traders are now anticipating key inflation data for May.
S&P 500 futures increased by 0.5%, while Nasdaq 100 futures saw a larger jump, rising by 1.9%. Meanwhile, futures associated with the Dow Jones Industrial Average experienced a modest increase of 29 points, which is less than 0.1%.
Micron’s shares surged about 15% during after-hours trading on Wednesday due to third-quarter earnings that surpassed analysts’ expectations. Furthermore, Micron projected a revenue of $50 billion for the upcoming quarter, a significant rise from last year’s $11.3 billion and higher than the anticipated $43.58 billion.
Stocks connected to the semiconductor sector also saw gains. For instance, Qualcomm raised its forecast for non-mobile sales in fiscal 2029 from a previous estimate of $22 billion to $40 billion, marking a 14% increase. Other notable chip manufacturers included Sandisk, Western Digital, RAM Research, KLA, and Applied Materials, drawing attention in the market.
On the other hand, both the S&P 500 and the tech-focused Nasdaq Composite declined during regular trading hours, falling by 0.10% and 0.43%, respectively. In contrast, the Dow bucked the trend, managing a gain of 182.06 points, equivalent to a 0.35% increase.
Asian markets experienced an uptick early Thursday, with the Korean Kospi leading the way with a rise of over 5%. The small-cap Kosdaq increased by 1.32%. Japan’s Nikkei Stock Average and TOPIX also posted gains of 1.28% and 0.76%, respectively, while Australia’s S&P/ASX 200 saw a slight decrease.
Ryan Detrick, chief market strategist at Carson Group, commented on the current market dynamics, suggesting that the recent shift away from technology stocks could be beneficial for overall equity growth this year. “It seems like a healthy change,” he remarked, adding that despite some declines in tech, several sectors, particularly industrial and finance, are showing promise. He’s optimistic about the cyclical nature of these changes.
In political news, the White House has requested Congress to approve an additional $87.6 billion in spending, partly to support military actions in Iran. Congressional Democrats have expressed their opposition in a letter sent from the Office of Management and Budget Director to House Speaker.
Investors will turn their attention to the May Personal Consumption Expenditure Price Index on Thursday morning, which is the Federal Reserve’s preferred measure of inflation. Economists expect a monthly rise of 0.5%, slightly above April’s 0.4% increase and an annual rise of 4.1%, also surpassing April’s 3.8% figure.
Excluding the fluctuating prices of food and energy, the core PCE is forecasted to rise by 0.3% month-on-month and 3.4% year-on-year, both higher than the previous measurements recorded in April.
Additionally, companies like McCormick, Commercial Metal, Darden Restaurants, and Winnebago are set to report their earnings before the markets open on Thursday. Traders will also keep an eye on final GDP figures for the first quarter, as well as preliminary data on personal income and durable goods orders, alongside new jobless claims for the week ending June 20.
