Wall Street futures rise as Nvidia AI chip sparks rally
U.S. stock index futures climbed on Monday morning to kick off June on a firm footing, as a fresh artificial intelligence push from tech giants Nvidia and Microsoft successfully overshadowed lingering anxieties over the conflict between the U.S. and Iran.
Nvidia shares rose 1.6% in premarket trading after the world’s most valuable company unveiled a highly anticipated new microchip. Developed through a three-year partnership with Microsoft, the chip is designed to bring powerful AI capabilities directly to everyday laptops and desktops when it releases this fall. Microsoft shares rallied 2.8% on the news of the joint effort to "reinvent the PC for the AI era," though rival PC chipmakers AMD and Intel felt the squeeze, dropping 3.4% and 2.9% respectively, News.Az reports, citing Reuters.
The tech-led momentum sparked gains across the board. By 5:18 a.m. ET, Dow e-minis were up 143 points (0.28%), S&P 500 e-minis rose 17.5 points (0.23%), and Nasdaq 100 e-minis advanced 86.75 points (0.29%). Elsewhere in the sector, Cadence Design Systems jumped 8.2% after debuting an autonomous engineer for chip design powered by Nvidia, while Micron advanced 5.3% to breach the historic $1,022 mark—topping $1,000 for the first time following a massive 90% surge in May.
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Despite the early tech optimism, the broader geopolitical mood on Wall Street remains somber. Global oil prices ticked upward following a fresh exchange of military attacks between the U.S. and Iran, complicating international efforts to negotiate an end to the three-month-old war.
While main indexes closed May at record highs on strong corporate earnings, investors are bracing for a volatile month ahead. Wall Street is eagerly awaiting Friday's key U.S. jobs report, which will serve as a crucial indicator ahead of Kevin Warsh’s highly anticipated debut policy meeting as the new Chairman of the Federal Reserve. Against a backdrop of rising inflation fears linked to the war, traders are currently pricing in a near 70% chance of a quarter-point interest rate hike before the end of the year.
Market focus will shift later this week to corporate earnings from Broadcom on Wednesday—the second-largest U.S. chipmaker by market value—as well as a flurry of comments from Fed officials and the central bank's Beige Book report before the Fed enters its pre-meeting blackout period on Saturday.
By Aysel Mammadzada
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