Nasdaq Futures Surge 2% as Chip Outlook Eases AI Concerns

US stock futures extended gains overnight, with Nasdaq futures climbing 2.24% as semiconductor companies delivered upbeat guidance on artificial intelligence demand. According to reports, memory chip giants Micron and Qualcomm both posted strong pre-market gains following their positive outlooks, signaling renewed confidence in the AI sector after recent volatility. The announcement indicated that these forecasts have helped restore investor sentiment following earlier jitters surrounding AI-related valuations and growth expectations.

The positive momentum from US equities is expected to carry into Asian trading, with Indian markets positioned for a constructive open as futures strength typically supports regional sentiment. Semiconductor and technology stocks have been under pressure in recent weeks due to valuation concerns and questions about the pace of AI monetization; however, concrete guidance from major chipmakers like Micron and Qualcomm suggests corporations remain committed to AI infrastructure investment. This shift could prove significant for growth-oriented portfolios and technology-heavy indices.

Market participants are now focused on upcoming US inflation data, which traders hope will validate the current risk-on sentiment while addressing persistent concerns about interest rate trajectories. A softer inflation reading could reinforce expectations that central banks may pause or moderate further rate hikes, potentially supporting equities and reducing volatility. Conversely, stronger-than-expected inflation could quickly reverse today's gains, making the data release a critical pivot point for both US and global markets as investors reassess monetary policy implications.

Source: Markets-Economic Times