Wall Street Rally: Economic Insights and AI Surge
Wall Street futures dipped slightly after U.S. indexes hit record highs. Expectations remain for Federal Reserve interest rate cuts despite weak August jobs data. AI-driven stocks rallied on Oracle's forecast, boosting the S&P 500. Adobe and Microsoft made notable premarket moves, with Warner Bros Discovery witnessing gains.
On Friday, Wall Street futures experienced a slight decline following a session where the major U.S. indices achieved record highs, marking a week filled with significant economic data that did not alter expectations for upcoming interest rate cuts by the Federal Reserve.
The previous day saw a jump in Tesla and Micron Technology shares, fueled further by a monthly inflation report that suggested the central bank was set to decrease rates next week. Market forecasts already anticipated a 25-basis point reduction in monetary policy due to recent indicators showing a softer labor market.
The downtrodden August nonfarm payrolls invigorated speculation on a potential 50-basis point cut, now predicted at 7.5% according to CME's FedWatch tool. Inflation data also supported the probability of three additional quarter-point cuts in 2023, one during each remaining Fed meeting this year. Meanwhile, AI stocks surged on Oracle's favorable outlook, enhancing the performance of the S&P 500's information technology sector.
(With inputs from agencies.)
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