Futures rebound after a broad sell-off; Micron shines. U.S. stock index futures gained on Thursday after a significant sell-off on Wall Street in the previous session as investors clung to prospects of lower borrowing costs next year. Chipmaker Micron extended its estimate.
The three main indexes ended the previous session down, with the benchmark S&P 500 (.SPX) having its weakest day since late September after a recent run that had it within a percentage of its early 2022 record closing high.
A fresh closing high would reaffirm the benchmark index’s bull market since October 2022’s bear market floor. The surge began when policymakers unexpectedly dovishly changed their monetary policy stance a week ago, lowering 10-year U.S. government note rates to 3.878% from multi-year highs in October.
The CME FedWatch Tool shows that traders predict at least a 25 basis point rate decrease in March next year and a near 100% possibility in May, despite Federal Reserve officials’ opposition.
The final third-quarter GDP estimate will remain 5.2% at 8:30 a.m. E.T. A Reuters poll predicts 215,000 weekly state unemployment benefit claims. The statistics may illuminate the U.S. economy after the Fed’s sharpest monetary tightening in years.
Micron Technology (MU.O.) estimated quarterly revenue above market projections, and its shares rose 5.5% before the bell on hints of a 2024 memory chip comeback after one of the worst downturns in years.
Chipmakers, including Nvidia (NVDA.O) and AMD (AMD.O), climbed over 1%. Dow e-minis rose 144 points, or 0.38%; S&P 500 e-minis 20.75 points, or 0.44%, and Nasdaq 100 e-minis 98.75 points (0.59%), at 5:41 a.m. E.T.
A source told Reuters that Boeing (BA.N) will begin 787 Dreamliner deliveries to China within days, which may allow China to break a four-year block on 737 MAX deliveries. Boeing rose 1.9%.
Tesla (TSLA.O), Nikola (NKLA.O), and Lucid Group gained 1.2% to 4.0% after a report suggested the U.S. was mulling tariff rises on Chinese E.V. producers. After BlackBerry (BB.TO) estimated fourth-quarter sales below analysts’ projections, U.S.-listed shares fell 5.4%.
Comment Template