Market Analysis

U.S. stock index futures edged higher during Wednesday evening trading, driven by gains in technology stocks, particularly Micron, following its strong earnings report. However, broader gains were restrained after Wall Street posted a negative session, with attention shifting to Federal Reserve Chair Jerome Powell's upcoming speech.

Despite the pullback, U.S. stock benchmarks remained near record levels, buoyed by last week’s substantial interest rate cut by the Federal Reserve.

As of 19:21 ET (23:21 GMT), S&P 500 Futures were up 0.1% to 5,783.75 points, Nasdaq 100 Futures climbed 0.3% to 20,243.25 points, while Dow Jones Futures dipped 0.1% to 42,255.0 points.

Micron Rallies on AI-Driven Earnings, Boosting Tech Sector
Micron Technology Inc (NASDAQ) shares surged over 14% in after-hours trading after the memory chip maker reported better-than-expected quarterly results and issued an upbeat forecast for the current quarter, citing strong demand for AI-related products.

As one of the world’s largest memory chip manufacturers, Micron highlighted the robust demand for high-bandwidth memory chips, fueled by advancements in artificial intelligence. This momentum also lifted other tech stocks, particularly in the semiconductor sector. NVIDIA Corporation (NASDAQ) rose nearly 1%, while Applied Materials Inc (NASDAQ) and Western Digital Corporation (NASDAQ) saw gains of 4% and 6.5%, respectively.

Powell Speech and PCE Data in Focus
The market’s focus this week centers on further signals from the Federal Reserve, following last week’s rate cut. Jerome Powell is set to deliver a speech on Thursday, which investors are closely watching for clues on future rate moves.

Several Fed officials have spoken in support of last week’s 50 basis point rate cut but cautioned that further cuts may be more gradual. Friday’s release of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation measure, is also expected to influence future rate decisions.

Wall Street rallied to record highs after the Fed signaled the start of an easing cycle, with analysts forecasting rate cuts totaling at least 125 basis points. However, gains have slowed recently as uncertainty over the Fed’s next move grows.

On Wednesday, the S&P 500 slipped 0.2% to 5,722.26 points, the NASDAQ Composite ended flat at 18,084.51 points, and the Dow Jones Industrial Average dropped 0.7% to 41,914.75 points.

Aramark Surges Amid Sodexo Acquisition Interest
In other post-market action, Aramark Holdings (NYSE) soared over 10% to a three-year high following reports that French catering giant Sodexo SA (EPA) was eyeing a takeover.

Meanwhile, H B Fuller Company (NYSE) tumbled 9% after slashing its annual guidance, and Concentrix Corp (NASDAQ) dropped 11% on weak quarterly earnings and downgraded guidance.

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