S&P 500, Nasdaq near record highs as interest rate-cut bets creep up

The benchmark S&P 500 and tech-led Nasdaq were about 1% below their all-time peaks at Wednesday's close, following a truce in the Middle East conflict

The S&P 500 and Nasdaq were on track to open near record levels on Thursday as robust earnings from memory-chip maker Micron fueled optimism around artificial intelligence while investors assessed a slew of economic data.

 

The benchmark S&P 500 and tech-led Nasdaq were about 1 per cent below their all-time peaks at Wednesday's close, following a truce in the Middle East conflict. 

The Nasdaq 100 - a subset of the Nasdaq composite index - closed at a record high in the previous session. 

Semiconductor makers got a lift from a 1.3 per cent rise in Micron Technology shares premarket after the company forecast quarterly revenue above estimates, citing strong demand for its chips used in AI data-centers. 

 

Shares of Marvell Technology and Advanced Micro Devices climbed 2.3 per cent and 2.6 per cent, respectively. Nvidia rose 1.3 per cent after scaling a fresh all-time high on Wednesday. 

Economic data was mixed. The final reading from the U.S. Commerce Department showed gross domestic product contracted 0.5 per cent in the first quarter. Economists polled by Reuters had forecast a 0.2 per cent contraction.

 

"A 0.5 per cent contraction is worse-than-expected, but that really reflects how much imports overwhelmed exports in the first quarter, as businesses and consumers tried to get ahead of the tariff program," said Sam Stovall, chief investment strategist at CFRA Research. 

Separately, a report for weekly jobless claims showed the number of Americans filing new applications for jobless benefits fell last week. 

At 08:52 a.m. ET, Dow E-minis were up 100 points, or 0.23 per cent, S&P 500 E-minis were up 18.5 points, or 0.3 per cent. 

Nasdaq 100 E-minis were up 90 points, or 0.4 per cent Investors also weighed Federal Reserve Chair Jerome Powell's remarks during his two-day congressional testimony, where he reiterated a wait-and-see approach toward interest rate cuts. 

President Donald Trump intensified his attacks on Powell for not cutting rates sooner. On Wednesday, Trump said he had narrowed down his choice to three or four candidates to potentially replace the Fed chair. 

Traders are pricing in about 63 basis points worth of rate cuts by the end of 2025, with expectations for the first cut in September. 

On Friday, the Personal Consumption Expenditures report - the Fed's preferred gauge of inflation - will be scrutinized to ascertain tariff-induced price changes in the U.S. economy. 

Some of the central bank officials scheduled to speak later in the day include Fed Cleveland President Beth Hammack, Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari. 

Shares of sportswear company Nike edged up 0.6 per cent ahead of its quarterly results.