Nasdaq Futures Surge as Tech Giants and AI Stocks Lead June Rally

Nasdaq futures are leading gains on Wall Street at the start of June, driven by notable performances from megacap stocks like Apple, Meta, and Alphabet. Nvidia has also seen a significant increase after announcing its new AI chip platform. Investors are optimistic due to the potential for easing monetary policies and strong earnings.

Reuters | Updated: 03-06-2024 17:11 IST | Created: 03-06-2024 17:11 IST
Nasdaq Futures Surge as Tech Giants and AI Stocks Lead June Rally
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Nasdaq futures led Wall Street gains on Monday and were on track to begin June's first trading day on a positive note as megacap growth stocks inched up, recovering some ground after closing Friday's session in the red.

Megacap stocks including Apple, Meta and Alphabet gained between 0.3% and 0.4% in premarket trading, buoyed by a dip in U.S. Treasury note yields. Artificial intelligence leader Nvidia jumped 2.7%. Chief executive Jensen Huang said on Sunday the company's next-generation AI chip platform would be rolled out in 2026.

The technology sector closed slightly lower on Friday as investors rebalanced their month-end portfolios. However, despite the S&P 500 and the Nasdaq snapping their five-week winning streaks on Friday, all three of Wall Street's main indexes ended May with strong gains.

The S&P 500 rose 4.8%, the Dow climbed 2.3% and the tech-heavy Nasdaq rose nearly 7% last month, as strong earnings and hopes of easing monetary policy buoyed Wall Street's biggest stocks. Investors increased bets on a September start to interest-rate cuts by the Federal Reserve on Friday, according to the CME's FedWatch tool, after inflation indicated a potential cooling of price pressures as measured by the Personal Consumption Expenditures Price Index.

"Solid earnings and the outlook of lower rates may keep risk sentiment underpinned," analysts at Generali Investments said in a note. "That said, an advanced equity rally, depressed volatility and elevated investor positioning in risk assets reflect a very high degree of market optimism that keeps the risk of temporary setbacks high."

Key economic data due this week, including surveys on the manufacturing and services sector, factory orders and Friday's closely watched nonfarm payrolls report, will provide additional cues on the health of the U.S. economy. May's reading of the Institute for Supply Management's Manufacturing Purchasing Managers' Index is due later in the day.

At 7:11 a.m. ET, Dow e-minis were up 3 points, or 0.01%, S&P 500 e-minis were up 9.75 points, or 0.18%, and Nasdaq 100 e-minis were up 83 points, or 0.45%. Among others, shares of GameStop soared 85.3% after a weekend Reddit post from stocks influencer Keith Gill, also known as "Roaring Kitty," showed a $116 million bet on the gaming retailer.

Other so-called meme stocks such as AMC and Tupperware rose 27.5% and 10.3%, respectively, while retail-focused brokerage Robinhood gained 2.9%. Chipmaker Advanced Micro Devices rose 1.6% after it unveiled its latest AI processors at an industry event and detailed plans to take on competitor Nvidia.

Paramount Global shares gained 6.8% after a report on Sunday said Skydance Media had sweetened its buyout offer for the company to $15 per share. U.S.-listed shares of Arm Holdings added 2.3% after the UK chip designer said it expects 100 billion of its devices worldwide to be ready for artificial intelligence by the end of next year.

Waste Management will buy medical waste disposal company

Stericycle in a deal valued at $7.2 billion, the companies said, sending shares of the bigger firm down 1.3

% in choppy trading.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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