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US STOCKS-Nasdaq futures rise as Nvidia stabilizes after AI stocks rout
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US STOCKS-Nasdaq futures rise as Nvidia stabilizes after AI stocks rout
Jun 25, 2024 3:41 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Futures: Dow flat, S&P 500 up 0.18%, Nasdaq up 0.42%

June 25 (Reuters) - Nasdaq futures climbed on Tuesday as

Nvidia ( NVDA ) and other AI-linked stocks firmed after a bruising

selloff, while investors awaited further cues on the monetary

policy path based on remarks by U.S. Federal Reserve officials

this week.

AI chip firm Nvidia ( NVDA ) advanced 2.1% premarket. Chip

stocks Micron Technology ( MU ), Broadcom ( AVGO ) and Qualcomm ( QCOM )

also recovered some lost ground, and were up more than

1% each, while AI-optimized server maker Super Micro Computer ( SMCI )

rose 2%.

"There has certainly been strong speculation in Nvidia's ( NVDA )

exponential surge since the beginning of last year ... strong

rallies were often followed by sharp selloffs," Ipek

Ozkardeskaya, senior analyst at Swissquote Bank, said.

"It's too early to call the end of the Nvidia ( NVDA ) mania but

given the high amount of speculation around the stock, we shall

see the price action getting worse before it gets better."

The tech-heavy Nasdaq logged its steepest one-day fall, of

more than 1%, since late April as investors pulled out of AI

stocks and moved to other sectors, causing the blue-chip Dow to

hit a one-month high on Monday.

At the start of the week, investors bought into sectors

including utilities, consumer staples and

energy that have underperformed tech and tech-adjacent

stocks this year on continued AI optimism.

While the Fed's preferred inflation gauge, the personal

consumption expenditures (PCE) price index report on Friday is

at the top of the watch list, investors will also keep an eye

out for consumer confidence data during the day.

Fed Board Governors Michelle Bowman and Lisa Cook, this

year's voting committee members, are set to speak on Tuesday.

Market participants see 61% odds of a 25-basis point

interest rate cut in September, and are eyeing around two cuts

by the end of the year, according to LSEG's FedWatch data.

A slew of quarterly corporate earnings are also scheduled

for the day, with cruise operator Carnival Corp ( CCL ) due

before market open and parcel delivery giant FedEx ( FDX ) after

the bell.

At 5:33 a.m. ET, Dow e-minis were down 14 points,

or 0.04%, S&P 500 e-minis were up 9.75 points, or 0.18%,

and Nasdaq 100 e-minis were up 83 points, or 0.42%.

Among other major premarket movers, Spirit AeroSystems ( SPR )

dropped 5%. A report showed Boeing ( BA ) has offered to

acquire the airplane fuselage maker in a deal funded mostly by

stock that values its key supplier at about $35 per share.

Trump Media & Technology Group ( DJT ) rose 14.2%, set to

extend Monday's strong gains. The company had announced it

expected $69.4 million in proceeds from cash exercise of

warrants.

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