U.S. futures advance as AI jitters fade after chip updates

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U.S. futures advance

Highlights

Nasdaq 100 futures rose 2.2% as tech sentiment improved.
Micron shares jumped more than 10% after an earnings beat.
Qualcomm gained after outlining plans for AI data-center revenue.
Investors are watching PCE inflation data for Fed policy signals.

Chip stocks lift premarket sentiment

Futures tied to the Dow Jones Industrial Average and the S&P 500 rose 0.14% and 0.79%, respectively. Nasdaq 100 futures jumped 2.2%, pointing to a stronger rebound in technology stocks after recent pressure on companies linked to artificial intelligence, Yahoo Finance reported.

Micron was the main driver of the shift in sentiment. The memory-chip maker reported stronger-than-expected earnings after Wednesday’s close and issued an upbeat outlook, sending its shares up more than 10% in extended trading.

The results mattered because Micron has become one of the clearest tests of whether AI demand is translating into real revenue growth beyond the largest chipmakers. Its memory products are used in data centers and AI systems, making the company a key barometer for infrastructure spending.

Qualcomm also helped ease market nerves. The company said after hours that it plans to enter the data-center market and expects strong growth from its AI business. That announcement lifted Qualcomm shares and added to the view that AI demand is spreading across more parts of the semiconductor industry.

AI trade faces a higher bar

The rebound followed several weak sessions for tech stocks, as investors questioned whether AI valuations had moved too far too quickly. Wall Street has become more selective, rewarding companies that can show direct revenue from AI while punishing those whose outlooks look less certain.

That makes the latest moves in Micron and Qualcomm important. Both companies offered investors evidence that AI-related demand remains active, even after a stretch of selling in the sector.

Still, the market backdrop is not risk-free. Investors are also watching the Federal Reserve, with May’s Personal Consumption Expenditures Price Index due Thursday. The PCE index is the Fed’s preferred inflation gauge and could shape expectations for the next rate move.

At the Fed’s June meeting, nearly half of officials indicated they expected at least one interest rate hike this year. That keeps monetary policy in focus even as tech shares try to recover.

The next test for the rally

The move in futures shows that the AI trade still has support, but the market is demanding proof. Strong earnings and credible AI revenue forecasts can still lift stocks, while weaker outlooks may face quick selling.

The bigger test now is whether the rally can survive both higher expectations and interest-rate uncertainty. Micron and Qualcomm helped calm investors for now, but Thursday’s inflation data could quickly shift the tone if it points to more pressure from the Fed.

We have previously highlighted that Brent falls to prewar levels as Middle East supply returns.

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