Wall Street on track for upbeat open as Nvidia leads megacaps higher
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Powell due to speak at 10 a.m. ET
TSMC rises on strong Q2 revenue growth
Goodyear Tire up after report Yokohama's plans to buy unit
Futures up: Dow 0.05%, S&P 500 0.25%, Nasdaq 0.40%
Updated at 8:40 a.m.ET/1240 GTM
By Lisa Pauline Mattackal and Ankika Biswas
July 10 (Reuters) - Wall Street looked set to open higher on Wednesday as strength in shares of its biggest companies fuels a record rally, with Federal Reserve Chair Jerome Powell's remarks and crucial inflation data expected to offer more direction this week.
AI-chip favorite Nvidia NVDA.O jumped 2.1% in premarket tradingafter hitting a nearly three-week high in the previous session.
Tesla TSLA.O, too, gained0.3% after HSBC hiked its price target on the EV maker's stock, whichclocked its longest winning streak of10 sessions this yearon Tuesday.
The rest of the so-called "Magnificent Seven" stocks, including Apple AAPL.O, Alphabet GOOGL.O and Microsoft MSFT.O, rose between 0.3% and 0.5%, as U.S. Treasury yields slipped.
A handful of large-cap stockshas been the main force behind Wall Street's banner rally this year, raising questions about when other sections of the market couldcatch up and leading some marketwatchers to call for greaterdiversification.
Other chip stocks including Arm Holdings ARM.O and Micron Technology MU.O gained over 1.1% each, with the U.S. listing of Taiwan Semiconductor Manufacturing Co TSM.N, the world's largest contract chipmaker, climbing 2.5% after itssecond-quarter revenue handily beat estimates.
The benchmark S&P 500 .SPX closed at an all-time high for the fifth straight session on Tuesday, whilethe tech-heavy Nasdaq .IXIC notched its sixth record closing high, after hopes for an interest-rate cut in September received a boost fromJerome Powell, who said theU.S. was "no longer an overheated economy".
However, as expected, Powell refrained from committing to a timeline for cuts in his testimony to Congress. He is slated to appear before the House Financial Services Committee at 10 a.m. ET for further questioning from lawmakers.
"Powell came in a little bit more dovish than we expected... he's purposely trying to signal to markets that if there is a good inflation print this week, that September is back on the table as a possibility for a rate cut," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
Bets on a 25-basis-point rate cut by September ticked up to74% on Wednesday, up from around 70% yesterday and 45% a month ago, according to CME's FedWatch. Comments from Fed officials Austan Goolsbee, Michelle Bowman and Lisa Cook are also expected through the day.
Attention will now shift to U.S. inflation data this week, with the ConsumerPrice Index due on Thursday and the Producer Price Index report on Friday.
The second-quarter earnings season, which kicks off this week with major banks due to report onFriday, will be a key test for whether high-flying megacaps can justify expensive valuations and continue their strong runs.
At 8:40 a.m. ET, Dow e-minis 1YMcv1 were up 20 points, or 0.05%, S&P 500 e-minis EScv1 were up 14.25 points, or 0.25%, and Nasdaq 100 e-minis NQcv1 were up 83 points, or 0.40%.
Goodyear Tire & Rubber Company GT.O gained 1.6% after a report that Japan's Yokohama Rubber was in talks to buy its off-road tire business for at least $1 billion.
Gene-sequencing equipment maker Illumina ILMN.O jumped 3.6% on plans to acquire privately held Fluent BioSciences.
Reporting by Lisa Mattackal and Ankika Biswas in Bengaluru; Editing by Pooja Desai
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
