Chip Stocks Surge Ahead of Fed Decision

U.S. stock index futures increased as gains in chip stocks buoyed markets. Investors anticipate earnings from major tech firms and a Federal Reserve rate decision. Nvidia, Intel, and others saw premarket gains, sparking a global tech rally. Fed decision and remarks from Chair Jerome Powell are eagerly awaited.

On Wednesday, U.S. stock index futures climbed, bolstered by strong performances from chip stocks. Analysts attribute this rise to investor anticipation of earnings reports from the 'Magnificent Seven' tech giants and an impending Federal Reserve rate decision.

In premarket trading, Nvidia rose 1.7%, Intel leapt by 6.6%, and both Micron Technology and Microchip Technology experienced over 5% gains. The positive trend extended worldwide as SK Hynix and ASML announced record profits and orders, fueling a tech sector rally.

As Meta, Microsoft, and Tesla prepare to release earnings, investor focus shifts to potential AI spending justifications. Meanwhile, the Federal Reserve is expected to keep rates stable, with markets closely following Chair Jerome Powell's insights on future policy directions.

(With inputs from agencies.)