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US stock futures rise following tech-powered rally in prior session

Published 2024-09-11, 08:54 p/m
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Investing.com -- US stock futures moved higher on Thursday, pointing to an extension in a tech-fueled rally in stocks in the prior session.

By 07:00 ET (11:00 GMT), the Dow futures contract had added 81 points or 0.2%, S&P 500 futures had ticked up by 11 points or 0.2%, and Nasdaq 100 futures had gained 28 points or 0.2%.

The main averages on Wall Street advanced on Wednesday, with the tech-heavy Nasdaq Composite in particular posting its largest daily increase in a month.

A surge in shares in artificial intelligence-darling Nvidia (NASDAQ:NVDA) bolstered big-name tech stocks and underpinned a rebound in equities following a morning sell-off in the wake of August US inflation figures.

While the data showed that headline consumer price growth had matched July's pace on a monthly basis, the "core" reading -- stripping out volatile items like food and fuel -- had accelerated slightly. The result boosted expectations that the Federal Reserve will roll out a more measured 25-basis point interest rate cut at its next policy gathering on Sept. 17-18, rather than a more aggressive 50-basis point reduction.

Global chipmakers rise after Nvidia surge

Global semiconductor groups rose on Thursday following the surge in shares in Nvidia.

SK Hynix (KS:000660), Hon Hai Precision Industry (TW:2317) and Advantest Corp. (TYO:6857) -- all Nvidia suppliers -- moved higher in Asian trading, as well as Japan's Tokyo Electron Ltd. (TYO:8035) and Renesas Electronics Corp . (TYO:6723). In Europe, ASM International (AS:AS:ASMI) (AS:ASMI), ASML Holding (AS:AS:ASML), and STMicroelectronics (EPA:STMPA) were in the green in midday dealmaking.

The moves come after Nvidia's stock price surged by 8.2% on Wednesday, its biggest one-day gain in six weeks. The stock was hovering just above the flatline in premarket US trading.

In other corporate names, Moderna (NASDAQ:MRNA) stock fell prior to the opening bell following its announcement of cuts to its research and development (R&D) budget.

The drugmaker revealed at its annual R&D Day that it plans to reduce its R&D expenses by approximately $1.1 billion, lowering projected costs from $4.8 billion in 2024 to between $3.6 billion and $3.8 billion by 2027. The company explained that the decision is part of its broader strategy to prioritize its existing product pipeline and focus on commercial growth.

Elsewhere, Boeing (NYSE:BA) could be facing a strike as soon as Friday should more than 30,000 of the planemaker's workers in the US Pacific Northwest vote to begin a work stoppage and reject a tentative labor deal.

The planemaker had previously reached a tentative agreement for a 25% pay bump, along with a commitment to building a new plane in the Pacific Northwest, better retirement benefits and an increase to the union's input into jet quality.

However, the employees, who are represented by the International Association of Machinists District 751, are likely to reject the deal on Thursday, according to media reports. Workers are reportedly asking for bigger wage increases and other improvements to the agreement.

Oil jumps amid supply disruptions

Oil prices rose in European trade on Thursday as expectations of supply disruptions in the wake of Hurricane Francine tempered persistent concerns over slowing global crude demand.

Hurricane Francine made landfall in Louisiana on Wednesday after passing through the Gulf of Mexico, where several oil firms limited or suspended operations in the storm’s path.

Expectations of tighter supplies helped crude rebound from near three-year lows hit earlier this week, although, with the storm due to dissipate after making landfall, traders are beginning to focus once again on demand worries.

Brent oil futures expiring in November rose 1.5% to $71.67 a barrel, while West Texas Intermediate crude futures climbed 1.7% to $68.42 per barrel by 07:06 ET.

Ambar Warrick contributed to this report.

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