1. US Stock Futures Rise Ahead of Powell’s Comments and Fed Inflation Report US stock futures edged slightly higher as investors await remarks from Federal Reserve Chair Jerome Powell and anticipate the release of the Fed’s preferred inflation measure on Friday. On Wednesday, the S&P 500 snapped its two-day winning streak, falling 11 points (0.2%), while the Dow Jones Industrial Average dropped by 293 points (0.7%). Meanwhile, the Nasdaq Composite added 8 points (0.04%).
Despite Wednesday’s losses, all three indices are still on track to post gains for the month, driven by the Fed’s recent 50-basis point interest rate cut.
2. Powell to Speak Fed Chair Jerome Powell is scheduled to speak at 09:20 AM ET at the US Treasury Market Conference in New York. His comments come on the heels of last week’s 50-basis point rate cut, a move intended to protect the labor market while steering inflation back to the Fed’s 2% target. While some Fed officials have expressed concerns about inflation risks, Powell and others have defended the aggressive action as necessary for balancing inflation control and economic stability.
3. Micron’s Strong Forecast Boosts AI Optimism Micron shares surged in after-hours trading following the company’s upbeat guidance for the current quarter. The chipmaker expects adjusted per-share earnings of $1.74 on revenue of $8.70 billion, exceeding Wall Street expectations. Demand for its high-bandwidth memory chips, key for AI applications, is driving this optimism. CEO Sanjay Mehrotra highlighted strong demand from data center customers and healthy inventory levels, signaling continued growth in the AI space.
4. OpenAI Considers For-Profit Shift Reports suggest that OpenAI is planning to restructure its core business into a for-profit entity, making it more attractive to investors. This move, alongside CEO Sam Altman’s potential equity stake, comes as the company seeks to raise over $6 billion in capital. Long-term investors like Microsoft and others, including Apple and Nvidia, are reportedly eyeing participation in the round. This restructuring could signal significant developments in the AI landscape.
5. Oil Prices Slide as Saudi Arabia Eyes Increased Production Oil prices fell on Thursday amid reports that Saudi Arabia may abandon its $100 per barrel price target as it looks to increase output. The potential return of Libyan supply, which could add 1 million barrels per day back to global markets, also weighed on prices. This came despite a report from the Energy Information Administration showing a larger-than-expected drop in US oil inventories last week.
Stay sharp and see you all in chat!
— OptionsPlayers Team
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