US stock futures traded in the mixed territory on Thursday, with Dow futures slipping in red, while futures tied to Nasdaq and S&P 500 rallied amid optimism over potential Federal Reserve rate cuts.
The market sentiment seems to be boosted by a cheery performance in semiconductor stocks following a major deal between Samsung, SK Hynix, and OpenAI, despite ongoing concerns related to the US government shutdown.
The mood seems to be shifting from the economic uncertainty surrounding the government shutdown as investors navigate a volatile but upward-trending market landscape.
5 things to know before Wall Street opens
1. A deal between Samsung, SK Hynix, and OpenAI boosted the sentiment around semiconductor stocks on Thursday.
The South Korean chipmakers signed letters of intent to supply advanced memory chips for OpenAI’s ambitious Stargate AI data center project.
The shares of Samsung and SK Hynix soared to multiyear highs after the deal. The Wall Street has shown massive optimist on AI infrastructure and chips, underscoring their critical role in powering next-generation artificial intelligence technologies.
2. No resolution seems to be in sight, as the US government shutdown enters its second day on Thursday. President Trump emphasized using the shutdown to cut “deadwood” federal workers and save billions of dollars, signaling imminent layoffs.
The shutdown has halted many infrastructure projects running in Democratic-led states, adding to economic uncertainty as negotiations remain deadlocked.
Essential services continue to operate in the country even as thousands of federal workers are looking at salary delays or worse: layoffs.
3. The pre-market trade looks cautious, but optimistic as the AES Corporation led with a 13% gain, Pfizer and Merck benefitting from healthcare sector rallies, and technology stocks like AMD showing strength.
On the downside, advertising and communication sectors saw declines, with companies like Interpublic Group and Omnicom down around 5%. Some consumer discretionary names also slipped due to broader market rotation.
4. The technical analysis of Wall Street indices shows a cautious yet generally positive outlook. The S&P 500 has been climbing steadily, up around 0.24%, supported by strong gains in tech and healthcare sectors.
It trades near record highs with a bullish daily trend, despite short-term sell signals on lower timeframes. Nasdaq 100 displays mixed signals with strong daily buying interest but shorter-term weakness.
The Dow Jones faces resistance around 41,600, with neutral to bearish indicators on shorter intervals but showing potential upside if key levels hold.
Volatility remains subdued, reflecting investor confidence amid macro uncertainties.
5. The US government shutdown has infused caution across the globe, but investors seem optimistic as tech and semiconductor gains boosted the stocks in both Europe and Asia.
At the end of the trading session, Japan’s Nikkei was trading 0.8% up at 44,936.73 levels, while the Kospi 100 index inched 2.7 higher on Thursday.
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