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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.