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Futures: Dow up 0.15%, S&P 500 flat, Nasdaq up 0.03%
Sept 23 (Reuters) - U.S. stock index futures were
largely unchanged on Tuesday after a tech-driven rally drove
Wall Street to record closing highs for the third straight
session, while investors awaited Federal Reserve Chair Jerome
Powell's remarks on the economy.
Powell's comments could be crucial to shaping interest rate
expectations at a time when traders are weighing conflicting
signals from the Fed, with some officials arguing for measured
cuts going forward to keep inflation in check.
Newly appointed Fed Governor Stephen Miran, however, said on
Monday that the central bank risks over-tightening and harming
the labor market if it holds back, highlighting the tightrope
the Fed faces in balancing inflation against labor market
pressures.
"We don't really just have a clean recovery path from
the inflation highs of 2022, because we've gotten the shock of
tariffs that are basically occurring right when you would have
expected to be getting closer to that 2% target," said Michael
Reynolds, vice president, investment strategy at Glenmede.
"Right now, it seems like it's the labor market that has the
greater risk."
A September reading of S&P Global's flash manufacturing PMI
is due after markets open. Comments from Fed Governor Michelle
Bowman and Atlanta Fed President Raphael Bostic will also be
parsed.
At 5.41 a.m. ET, Dow e-minis were up 71 points, or
0.15%, U.S. S&P 500 E-minis were mostly unchanged and
Nasdaq 100 E-minis were up 7 points, or 0.03%.
Wall Street has rallied so far in September, a historically
weak month for equities, with the S&P 500 index recording
a 3.6% lift as tenacious traders navigate uncertainties around
President Donald Trump's policies.
Part of the resilience can be traced to strength in
technology stocks and renewed optimism around artificial
intelligence-linked trading. Some analysts have, however, raised
concerns of stretched stock valuations.
Nvidia ( NVDA ) slipped 0.7% in premarket trading on Tuesday
after hitting an intraday record high in the previous session.
The AI chip leader agreed to a tie-up with OpenAI to invest up
to $100 billion in and supply it with data center chips.
Investors will also be watching for potential
disruptions from H-1B visa regulations, particularly in U.S.
technology companies that rely heavily on skilled workers from
India and China. So far, mega-cap stocks have largely shrugged
off those worries.
Kenvue ( KVUE ), the maker of Tylenol that was spun off
from Johnson & Johnson ( JNJ ) in 2023, rose nearly 6%
premarket, rebounding from a 7.5% plunge that made it the top
laggard on the S&P 500 index on Monday.
U.S. President Donald Trump on Monday linked autism to
childhood vaccine use and the taking of popular pain medication
Tylenol by women when pregnant.
Boeing ( BA ) gained 2.5% before the bell after securing an
order from Uzbekistan Airways worth over $8 billion, while talks
for a Chinese order were ongoing.
ACM Research ( ACMR ) gained 5.4% as the semiconductor
equipment firm is set to join the small-cap S&P 600 index.