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Investing.com– U.S. stock index futures rose modestly in evening trading Monday, recovering ground after a negative session on Wall Street as markets remained largely on edge awaiting new signals on inflation and the Federal Reserve .
Gains in leading artificial intelligence stocks spilled over into aftermarket trading, as investors remained optimistic about the fast-growing sector.
But Wall Street now appears to have cooled after rallying to record highs last week, on the back of a seemingly dovish Federal Reserve. Regulatory interventions against some of the largest technology companies also weighed on sentiment.
rose 0.1% to 5,283.50 points, while rising 0.1% to 18,539.75 points at 8:04 pm ET (00:04 GMT). rose 0.1% to 39,722.0 points.
PCE inflation, Fed interventions at hand
The data, which is the Fed’s preferred inflation indicator, will be available this Friday, when markets are closed. But the reading will still be closely watched for further signs on the path of inflation, as the Fed has warned that any interest rate cuts in 2024 will depend largely on whether inflation approaches its annual target of 2% .
Along with the inflation data, a number of Fed officials will also speak this week, with a focus on Federal Open Markets Committee member and , who will give separate speeches on Friday.
Although the Fed signaled last week that it will cut rates by 75 basis points in 2024, markets remained on edge over any potential change to this outlook, particularly amid high inflation. This idea caused some losses on Wall Street.
The stock fell 0.3% to 5,218.19 points, while on Monday it closed 0.3% lower at 16,484.47 points. The drop is 0.4% to 39,313.64 points.
AI rally continues, Nvidia keeps records in sight
As Wall Street’s broader indexes cooled, investors continued to pile into AI-related stocks amid persistent hype about the growing sector.
Market favorite NVIDIA Corporation (NASDAQ:) rose 0.4% in aftermarket trading to $953.81, and was close to breaking a record in early March.
Memory chip maker Micron Technology Inc (NASDAQ:) rose 1% after closing at a record high. Mizuho raised the company’s target price on the back of improving prospects due to demand for artificial intelligence, particularly high-bandwidth memory chips. AI-related sales recently saw Micron achieve an unexpected quarterly profit, with the chipmaker also upgrading its sales forecast for the year.
Super Micro Computer Inc (NASDAQ:) rose 1.5% after gaining over 7% on the session after JPMorgan rated the server maker a ‘buy’.