U.S. Stock Futures Rally Amid Renewed Risk Appetite

U.S. stock index futures surged as investors regained confidence after a recent sell-off. Bank of Japan's cautious stance on interest-rate hikes boosted global market sentiment, with technology and chip stocks recovering. Key indexes are up this year, reflecting optimism around artificial intelligence and economic resilience.

U.S. stock index futures surged on Wednesday as investors' risk appetite returned following a sharp sell-off earlier in the week. This rise was bolstered by cautious remarks on interest-rate hikes from an influential Bank of Japan policymaker.

Global equity markets gained momentum after Bank of Japan Deputy Governor Shinichi Uchida confirmed the central bank would avoid raising interest rates amid market instability. This stance weakened the yen and improved market sentiment. Earlier, the BOJ's 0.25% rate hike on July 31 had caused a global stock plunge as investors readjusted their positions on the yen.

Market analysts noted that the recent volatility might lead to a healthier market in the long run. Major stock indexes, including the S&P 500 and Nasdaq, showed notable year-to-date gains, driven by optimism around artificial intelligence prospects. Leading tech stocks like Nvidia and Amazon.com continued their recovery, while chip stocks such as AMD and Marvell Technology also posted gains.

(With inputs from agencies.)