Semiconductor Stocks Shine Amid AI Surge and Economic Uncertainty

U.S. stock index futures rose as semiconductor stocks continued their AI-driven surge, with notable gains from Micron, Western Digital, and Seagate Technology. Despite a challenging trading week, these stocks significantly outperformed the broader market. Upcoming economic events and corporate earnings are set to influence investor sentiment.

U.S. stock index futures saw an uptick on Friday, propelled by semiconductor stocks that are riding high on an AI-related boom. Memory chipmakers, including Micron with a 6.4% rise in premarket trading, Western Digital at 4.9%, and Seagate Technology with a 4.1% increase, are leading the charge.

The iShares Semiconductor ETF marked a 2% gain amidst a broader 12% rally this year, outpacing the Nasdaq 100's 1.2% rise. This trend demonstrates strong investor confidence in AI-driven chip demand, despite shifts in capital towards undervalued sectors like small caps and industrial stocks.

As the U.S. enters the fourth-quarter earnings season, investor attention is on upcoming reports from major companies such as Netflix, Johnson & Johnson, and Intel. Meanwhile, concerns linger over proposed credit card interest rate caps impacting lenders, as well as the Federal Reserve's independence amid pressure from political figures.

(With inputs from agencies.)