Wall Street's stock index futures saw a slight increase on Friday, indicating a strong finish to the week. This optimism follows the Federal Reserve's commitment to a rate-easing policy, with investors keenly awaiting Fed Chair Jerome Powell's insights later in the day.
The U.S. stock market reached new highs, driven by a surge in chip stocks, thanks to Micron Technology's positive forecast. The Federal Reserve's indication of three potential interest-rate cuts this year further bolstered investor confidence.
Market expectations for a rate cut in June have jumped to 74%, a significant increase from 56% earlier in the week, as per the CME's FedWatch Tool.
Investors are gearing up for comments from various central bankers, including Jerome Powell, to gauge the future direction of monetary policy.
The Dow Jones Industrial Average is nearing the 40,000 mark, aiming for its best weekly performance of the year. Similarly, the S&P 500 and the Nasdaq are on track for their most impressive weekly gains, with the Nasdaq targeting its best week since mid-January.
In early trading, Dow e-minis rose by 0.04%, S&P 500 e-minis by 0.11%, and Nasdaq 100 e-minis by 0.18%. Rate-sensitive megacap growth and technology stocks saw premarket advances.
Leading the market gains this week, Tesla stands out, while the Philadelphia Semiconductor Index has risen by nearly 3%.
Nike's shares dropped by 6.8% following a revenue shrinkage warning for the first half of fiscal 2025. Lululemon Athletica also saw a decrease of 12.5% in its share price after projecting lower-than-expected annual revenue and profit.
Reddit experienced a 2.5% decline after its impressive market debut, while FedEx's shares climbed by 12.5% after surpassing quarterly profit and operating margin forecasts.
As earnings season approaches, investors will closely monitor early reports from companies like Nike and FedEx for indicators of broader market trends.
