Nasdaq futures soar as AMD boosts chips ahead of Fed decision; Microsoft falls

TradingKeyJul 31, 2024 12:26 PM

- Nasdaq futures surged over 1% as Advanced Micro Devices' optimistic forecast boosted chip stocks, with Microsoft being an exception ahead of a significant U.S. interest-rate decision.

- AMD's premarket trading rose by 9.2% following an increase in its 2024 artificial intelligence chip sales forecast, propelling other chip stocks like Nvidia, Intel, Marvell, Qualcomm, Broadcom, and Arm Holdings up by 2% to 5.2%.

- Market indices indicated positive momentum with Dow e-minis up 0.42%, S&P 500 e-minis up 0.97%, and Nasdaq 100 e-minis up 1.52% at 5:39 a.m. ET.

Nasdaq futures surged more than 1% driven by Advanced Micro Devices' positive forecast, boosting chip stocks, while Microsoft stood out negatively ahead of a crucial U.S. interest-rate decision. AMD's premarket trading soared by 9.2% following an upward revision in its 2024 artificial intelligence chip sales projection, leading other chip stocks like Nvidia, Intel, Marvell, Qualcomm, Broadcom, and Arm Holdings to rise between 2% and 5.2%. Market indices signaled upward momentum with Dow e-minis up 0.42%, S&P 500 e-minis up 0.97%, and Nasdaq 100 e-minis up 1.52%. This surge comes amid a shift away from megacap tech stocks, which had previously led the market, towards underperforming sectors as investors anticipate the Federal Reserve's upcoming monetary policy decision and seek signs of sustained growth in the AI sector.

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