Wall Street futures rise as chip stocks rebound

Wall Street futures rise: Futures for major US stock indexes showed gains on Thursday, driven by a rebound in chip stocks. Investors are awaiting comments from Federal Reserve officials to gauge the outlook for interest-rate cuts.

Micron Technology surged 1.9 per cent following reports that the memory-chip maker is set to receive over $6 billion in grants from the US Commerce Department for domestic chip factory projects. Other chip-related stocks like Advanced Micro Devices, Nvidia, and Broadcom also saw gains in premarket trading.

The rebound in chip stocks comes after a more than 3 per cent drop in the Philadelphia Semiconductor Index on Wednesday. The index had fallen nearly 13 per cent from last month's record highs amid diminishing expectations for rate cuts.

"Fundamentals will be supportive of chip stocks, but after such a strong rally, it's not unusual to see a bit of profit-taking," said Fiona Cincotta, senior market analyst at City Index.

Treasury yields, which had risen earlier in the week, fell slightly, providing some relief to equities. The S&P 500 and Nasdaq closed lower in the previous session, marking their fourth consecutive day of losses as investors remained cautious about the Fed's interest-rate stance.

Federal Reserve officials, including Cleveland Fed President Loretta Mester and Fed Governor Michelle Bowman, have expressed differing views on inflation and interest rates. Investors are closely watching for further comments from New York Fed President John Williams and Atlanta Fed President Raphael Bostic later in the day.

(with Reuters inputs)