U.S. stock index futures posted gains on Friday, with AI enthusiasm helping to balance concerns over elevated oil prices and rising Treasury yields. At 05:15 a.m. ET, Dow E‑minis were up 162 points (0.31%), S&P 500 E‑minis rose 23.75 points (0.31%), and Nasdaq 100 E‑minis climbed 188 points (0.61%).
AI‑focused chips lead the rally
Semiconductor companies tied to artificial intelligence saw the strongest pre‑market moves. Advanced Micro Devices, Marvell, Cerebras and Intel each jumped about 2%, leading the technology sector. Megacap names such as Tesla, Nvidia and SpaceX also posted modest gains.
Major cloud deal fuels optimism
Akamai Technologies surged 21% after announcing an $11.6 billion cloud‑services agreement with Anthropic, an AI research lab. The deal underscores growing corporate investment in AI infrastructure.
Meta’s AI push adds momentum
Meta Platforms benefited from increased consumer interest in its AI application Muse and a new device featuring the AI agent Charm. The stock was set for a fifth straight week of gains, positioning it for its largest five‑week rally since January 2023 and leaving it less than 1% away from a $2 trillion market valuation.
Energy and inflation pressures linger
Despite the tech‑driven upside, market gains were tempered by Brent crude prices remaining above $100 a barrel and the 10‑year Treasury yield at 5.1%. Analysts linked these pressures to ongoing inflation worries stemming from the prolonged conflicts in Iran and Ukraine, as well as rising U.S. government debt.
Geopolitical developments offer a glimmer of hope
U.S. and Iranian negotiators reportedly continued to explore a phased path out of the conflict, which could involve Tehran reopening the Strait of Hormuz and Washington easing its economic blockade. Such a development could ease oil market volatility.
Fed rate expectations rise
The CME Group’s FedWatch Tool indicated a 71% probability that the Federal Reserve will raise interest rates by at least 25 basis points in October, up from roughly 50% earlier in the week. Policymakers, including New York Fed President John Williams, Kansas City Fed President Jeffrey Schmid and Cleveland Fed President Beth Hammack, are expected to reaffirm a restrictive monetary stance in upcoming remarks.
Upcoming data and corporate news
Durable‑goods orders for August are scheduled for release at 8:30 a.m. ET, providing another gauge of economic activity. In corporate news, MGM Resorts International is reported to be in discussions about a potential bid for an online‑services company, a move that could expand its digital footprint.
Overall, the market narrative this week reflects a balancing act: AI‑driven growth and strong earnings are lifting futures, while higher oil prices, elevated yields, and inflation concerns keep investors cautious.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
