Alphabet’s 1% jump in pre‑market trading set the tone for a cautiously optimistic session, with the Nasdaq Composite adding 0.4% and the S&P 500 0.3% as investors digested the latest data.
The Dow, meanwhile, edged up 43 points, or 0.1%, but remained largely flat in later trading, suggesting limited breadth in the rally.
Semiconductor stocks led the tech rally: SK Hynix surged 9% after reporting a record quarterly profit, while Micron and Arm Holdings added 4% and 2% respectively. Marvell Technology and AMD also gained about 2% and 1%, underscoring the sector’s buoyancy amid AI infrastructure demand.
Market sentiment is still tightly focused on the Federal Reserve’s two‑day policy meeting. According to the CME Group’s FedWatch tool, markets price a 90% probability that the Fed will keep the benchmark rate steady in the 3.75%‑4% range. Investors are primed to parse Fed Chair Kevin Warsh’s 2 pm and 2:30 pm press conference for any hints on future rate hikes.
Oil prices added a layer of uncertainty, with Brent futures up 1% to $115.07 and WTI at $101.72, following U.S. preparations to renew strikes against Iran. The spike reflects fears of supply disruptions that could pressure energy‑linked tech stocks.
Ahead of the bell, Alphabet and Microsoft are set to report earnings, offering fresh insight into AI investments and cloud demand. Other companies slated for releases include Ford, GE Vernova, T‑Mobile US, eBay, Chipotle Mexican Grill and ServiceNow, which could further influence market breadth.