Tech Stock Surge: AI Hype Boosts Markets Amid Holiday Trading

U.S. stock index futures saw an upswing amid AI enthusiasm, primarily driven by tech stocks. Micron's strong forecast and a low inflation report propelled indexes closer to record highs. With lighter trading volumes expected, upcoming economic data may influence U.S. monetary policy expectations.

In a holiday-shortened trading week, U.S. stock index futures surged, spurred by renewed enthusiasm in artificial intelligence which notably buoyed technology stocks. This uplift comes as investors anticipate key economic figures due later in the week, potentially shaping the trajectory of U.S. monetary policy.

The previous week's tech rally, headlined by Micron Technology's remarkable forecasts and encouraging inflation data, aided the benchmark S&P 500 and tech-heavy Nasdaq in erasing weekly losses. The tech sector, previously under strain over valuation concerns and heightened AI investments, witnessed a robust rebound, positioning the S&P 500 and Dow Jones Industrial Average within 1% of their record peaks.

With major chipmakers such as Nvidia and Intel gaining ground and a traditional seasonal market boost on the horizon, trading remains light due to the approaching Christmas holiday. Investors keenly await economic indicators, including GDP estimates and consumer confidence numbers, to glean insights on future Federal Reserve rate decisions.

(With inputs from agencies.)