Investing.com– U.S. stock index futures steadied in evening deals on Thursday after strength in technology shares saw Wall Street extend a recent run of record highs as data showed some cooling in inflation.
Gains in Wall Street were driven largely by optimism over artificial intelligence, and came even as the Federal Reserve warned that it saw fewer chances of interest rate cuts in 2024.
fell 0.05% to 5,435.75 points, while steadied at 19,606.75 points by 19:17 ET (23:17 GMT). fell 0.1% to 38,646.0 points.
S&P 500, Nasdaq mark fourth straight day of record highs
Futures steadied after Wall Street indexes marked a fourth consecutive day of record highs, amid persistent support from technology stocks.
Tech remained heady, extending a rally seen earlier this week that was largely triggered by market major Apple Inc (NASDAQ:) announcing a major foray into AI. Apple’s announcement lent more fuel to the AI rally, and also saw the stock briefly become the most valuable company on Wall Street.
Gains in tech saw the rise 0.2% to a record high of 5,433.74 points, while the rose 0.3% to a record high of 17,665.90 points. The economically sensitive continued to underperform, falling 0.2% to 38,647.10 points.
PPI inflation cools, adds to disinflation narrative
data released on Thursday showed factory prices unexpectedly fell in May, adding to optimism that a disinflationary trend was in play.
The reading came a day after mildly softer data, and ramped up hopes that inflation was cooling.
Still, Wall Street’s pace of intraday gains now appeared to be slowing after a four-day run, especially after the Federal Reserve warned this week that it only saw one rate cut this year, compared to earlier expectations of three cuts. The central bank also hiked its inflation outlook for the year.
Tech rally continues on strong earnings, Tesla
Chipmaker Broadcom Inc (NASDAQ:) surged 12% on Thursday after clocking strong quarterly earnings on AI demand, while software maker Adobe Systems Incorporated (NASDAQ:) also logged strong earnings and hiked its 2024 guidance on higher demand for its AI-powered editing tools. The stock surged over 15% in aftermarket trade.
Electric vehicle maker Tesla Inc (NASDAQ:) surged nearly 3% on Thursday, adding another 0.5% in aftermarket trade after shareholders voted in favor of a controversial $56 billion pay package for CEO Elon Musk, as well as the company’s reincorporation in Texas.
