Stock futures are pointing higher Thursday following a steep downturn yesterday sparked by news that the Federal Reserve expects to make fewer interest rate cuts next year.
Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq were each up 0.7% about half an hour before the opening bell. The major indexes posted their biggest one-day losses in four months on Wednesday, as the Dow fell 2.6% to extend its losing streak to ten consecutive sessions, while the S&P 500 and Nasdaq Composite fell 3% and 3.6%, respectively.
The sell-off came after the Fed cut its benchmark rate by a quarter point, as had been expected, but indicated that its policy committee would be taking a cautious approach moving forward as it looks for signs that inflation remains under control. Policy committee members expect two quarter-point cuts in 2025, according to projections released yesterday, down from the four cuts they had penciled in the last time projections were issued in September.
Mega-cap technology stocks were mostly higher in premarket trading, led by AI investor favorite Nvidia (NVDA) and EV maker Tesla (TSLA), which were each up more than 2%. Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META) and Broadcom (AVGO) were also gaining ground, while Apple (AAPL) fell slightly.
Shares of chipmaker Micron (MU) tumbled 11% this morning after the chipmaker reported mixed quarterly results and issued a disappointing outlook.
Among other noteworthy post-earnings movers, shares of Olive Garden parent Darden Restaurants (DRI) were up 9%, while consulting giant Accenture (ACN) gained 5%. Shares of Lennar (LEN) were down 8% after the homebuilder released its quarterly results.
The yield on 10-year Treasurys, which is sensitive to expectations about where interest rates are headed, rose to 4.55% this morning, up from 4.50% yesterday and trading at its highest levels since May.
Bitcoin was trading at $102,000, up from an overnight low of around $99,000 but well below the record of over $108,000 set earlier this week. Gold futures were down about 1.5% at $2,610 an ounce, while crude oil futures were up slightly.
Micron Price Levels to Watch as Stock Slides on Weak Outlook
21 minutes ago
Micron Technology (MU) shares fell sharply in premarket trading Thursday after the memory chip maker and Nvidia (NVDA) partner issued a weaker-than-expected current-quarter outlook.
While the Idaho-based company said it sees a return to growth in the second half of fiscal 2025, it anticipates consumer-oriented markets to remain weaker in the near term. In prepared earnings call remarks, executives attributed the light outlook to a slower-than-expected PC upgrade cycle and softer auto and industrial markets.
Micron shares were down 11% at around $92 in recent premarket trading. Through the close of trading Wednesday, the stock had gained 22% since the start of the year, roughly in line with the S&P 500’s 23% return over the same period.
The stock looks set to stage a decisive breakdown below a trading range on Thursday, increasing the potential for further earnings-driven selling.
Investors should monitor key price levels on Micron’s chart around $85, $78, and $72, while also watching an important overhead area near $97.
Read the full technical analysis piece here.
Futures Point to Higher Open for Major Indexes
1 hr 1 min ago
Futures tied to the Dow Jones Industrial Average were up 0.7%.
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S&P 500 futures added 0.9%.
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Nasdaq 100 futures were up 0.8%.
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