U.S. stock futures and later cash equities moved higher as AI spending plans, Micron investment and a heavily subscribed SK Hynix U.S. share offering steadied semiconductor sentiment.
U.S. equity markets strengthened as technology and semiconductor news supported risk appetite. Before the open, Nasdaq 100 futures rose 1.04%, outpacing a 0.34% gain in S&P 500 futures and a 0.13% increase in Dow futures, as investors weighed Meta's plan to begin producing its AI chip in September, a reported C$13 billion Alberta data center project, Micron's planned $3 billion investment in the U.S. semiconductor supply chain, and reports that SK Hynix's U.S. offering was more than seven times subscribed. Later, cash equities also edged higher, with the Dow Jones Industrial Average up 149.6 points, or 0.29%, to 52,637.01, the S&P 500 up 31.75 points, or 0.42%, to 7,575.39, and the Nasdaq Composite up 74.72 points, or 0.29%, to 26,281.61. Bank of America also said Nvidia's forward price-to-earnings ratio had fallen to about 18 times, the lowest in the current AI bull market and near a seven-year low.