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Futures: Dow off 0.02%, S&P up 0.34%, Nasdaq provides 0.65%
March 18 (Reuters) –
Futures monitoring the S&P 500 and the Nasdaq rose on Monday forward of the Federal Reserve’s assembly this week, the place it’s anticipated to maintain borrowing prices regular and supply cues on its financial coverage path this yr.
Stronger-than-expected inflation figures final week have prompted traders to rethink when and by how a lot policymakers will decrease charges this yr, with merchants pulling again bets of a June charge reduce to 57% from 71% final Monday, in accordance with the CME FedWatch Device.
However, led by optimism round synthetic intelligence (AI), Wall Road hit recent all-time highs in March, earlier than pulling again some good points final week.
A hawkish tilt by the Fed in its coverage assembly that concludes on Wednesday may additional stress the high-flying shares.
“Whereas the latest pullback in tech shares could observe fears that the market has run too far and portfolios are too concentrated, we imagine traders can discover compelling diversification alternatives by the subsequent AI leaders,” mentioned Mark Haefele, chief funding officer at UBS International Wealth Administration.
Buyers eyed chipmaker Nvidia’s GTC developer convention from March 18 to 21, which can be parsed for AI-related bulletins. Shares of the AI big rose 2.1% in premarket buying and selling.
Friends similar to Micron Know-how and Superior Micro Gadgets added 2.6% and 1.2%, respectively.
At 5:30 a.m. ET, Dow e-minis had been down 6 factors, or 0.02%, S&P 500 e-minis had been up 17.5 factors, or 0.34%, and Nasdaq 100 e-minis had been up 117.5 factors, or 0.65%.
Most megacap progress and know-how shares additionally superior in buying and selling earlier than the bell.
Alphabet gained 3.1% after a media report that Apple is in talks to construct Google’s Gemini AI engine into the iPhone.
Tesla rose 3.3% after the electrical carmaker mentioned it might improve the worth of its Mannequin Y EVs in some European international locations on March 22, by roughly 2,000 euros ($2,177) or its equal in native currencies.
U.S.-listed shares of Xpeng climbed 7.0% on plans to launch a less expensive EV model amid fierce worth competitors.
In the meantime, Boeing shed 1.1% after a media report {that a} Federal grand jury in Seattle issued a subpoena to the planemaker over the Jan. 5 midair blowout. (Reporting by Bansari Mayur Kamdar in Bengaluru; Enhancing by Pooja Desai)
