US stock futures showed a slight increase after a notable rally on Wall Street that set new records. Futures linked to major indices, including the Dow Jones Industrial Average, the S&P 500, and the tech-heavy Nasdaq 100, each rose by approximately 0.1%.
On Tuesday, stocks experienced a downturn following a speech by Federal Reserve Chair Jerome Powell in Rhode Island. Powell’s remarks highlighted the economic challenges of low employment alongside high inflation, indicating that the central bank faces a complicated path forward without an entirely risk-free solution. While he did indicate that there could be room for further interest rate cuts later this year, Powell emphasized a cautious approach to any additional reductions. His assessment also included a comment on the current valuation of stocks, describing them as “fairly highly valued.”
In after-hours trading, shares of Micron Technology saw an uptick after reporting earnings that surpassed Wall Street’s expectations. These results were particularly relevant to investors as they viewed Micron’s performance as a critical indicator for the artificial intelligence sector.
Market participants are now closely anticipating the release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation, set to be made public on Friday. In light of Powell’s statements, traders are seeking assurance that inflation will not undermine the strong expectations surrounding potential interest rate cuts in the upcoming months.
Amid these economic dynamics, analysts will be watching the stock market closely, with particular attention focused on the insights provided by the forthcoming inflation data.
