📷 Image Credits: Investing.com
The U.S. stock index futures remained steady in evening deals, buoyed by an artificial intelligence-fueled rally that propelled Wall Street to new heights. The focus has shifted towards the Federal Reserve and the upcoming inflation data, setting the tone for market sentiment. The recent excitement surrounding AI technology served as a significant point of support for the markets. This optimism was further fueled by Apple Inc.’s partnership with ChatGPT maker OpenAI to introduce new AI features. Additionally, Oracle Corporation announced partnerships with Microsoft Corporation, OpenAI, and Alphabet Inc.’s Google, further intensifying the market’s interest in AI. Despite these positive developments, broader gains were somewhat restrained as investors await more cues on U.S. interest rates.
The S&P 500 Futures recorded a modest rise of 0.1% to 5,386.50 points, with Nasdaq 100 Futures also climbing by 0.1% to 19,265.75 points. Dow Jones Futures maintained stability at 38,788.0 points by 19:14 ET (23:14 GMT). Market attention is now focused on the culmination of a two-day Federal Reserve meeting scheduled for Wednesday. The general expectation is for the central bank to maintain interest rates at their current levels. However, there is cautious optimism in the market regarding the possibility of the Fed hinting at potential rate cuts, particularly following similar actions by other central banks such as the European Central Bank.
Prior to the rate decision, upcoming consumer price index data for May is anticipated to provide further insights into inflation trends. The data, also set for release on Wednesday, is expected to reveal that inflation remained elevated in May, surpassing the Fed’s 2% annual target range. Persistent inflationary pressures may reduce the likelihood of rate cuts by the Fed, creating a somewhat constrained market outlook. The recent rally in the S&P 500 and the NASDAQ Composite to record highs was predominantly driven by the tech sector, especially amidst the increasing buzz surrounding AI. Apple Inc. experienced a significant surge, reaching a record high with over a 7% gain due to its AI-related announcements.
Meanwhile, Microsoft and Alphabet also saw modest increases in their stock prices. However, the Dow Jones Industrial Average, known for its higher sensitivity to economic conditions, lagged behind, declining by 0.3% to 38,747.42 points. The positive momentum in tech stocks seen during trading hours did not fully extend into aftermarket trade. Contrarily, Oracle saw a substantial post-market surge of nearly 9% following its AI partnership announcements, overshadowing disappointing quarterly earnings results.
In summary, the market remains cautiously optimistic about the potential outcomes of the Federal Reserve meeting and the inflation data release. The evolving landscape of AI technology partnerships continues to drive investor interest, with market participants keeping a keen eye on these developments as they navigate through the current market environment.
