Wall Street's Rising Tide: AI and Rate Cut Expectations Boost Markets
Wall Street futures indicate a steady opening following record highs due to tech rallies and potential interest rate cuts. Tesla and Micron Technology shares spiked, influenced by inflation data signaling possible rate reductions. Consumer sentiment will be crucial as AI stocks drive market optimism, despite historical September downturns.
Wall Street is preparing for a steady opening on Friday, following Thursday's record-setting session where key indexes approached new highs. This momentum is fueled by rising optimism that interest rate cuts could soon be on the horizon, coupled with a robust rally in Tesla and Micron Technology shares.
The potential for rate cuts follows recent economic data that paints a less-than-rosy picture of the labor market, challenging previous assumptions. Analysts are now anticipating a series of quarter-point rate adjustments from the Federal Reserve throughout the year, reflecting revised expectations following disappointing payroll figures.
Market enthusiasts are eagerly awaiting the University of Michigan's consumer sentiment survey results for further economic insights. Meanwhile, the Nasdaq and S&P 500 are set to mark their second consecutive week of gains this September, driven largely by a surge in AI-related stocks and optimistic forecasts from tech giant Oracle.
(With inputs from agencies.)
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