U.S. stock futures suggest a modestly higher open on Friday, as investors look to continue the momentum from Thursday’s strong session.
Despite September typically being one of the weaker months for equities, major indexes have trended upward over the past few weeks. Optimism surrounding lower interest rates has bolstered the markets, following the Federal Reserve’s 25-basis-point cut on Wednesday and hints at two more reductions later this year.
Traders will also monitor a scheduled call between President Donald Trump and Chinese President Xi Jinping, expected to focus on a potential agreement for TikTok’s operations in the U.S.
Market activity could remain relatively subdued, given the lack of significant economic releases and uncertainty over the next major catalyst after the Fed’s move.
On Thursday, stocks built on early gains to post new record closing highs. The Nasdaq led the way, climbing 209.40 points, or 0.9%, to 22,470.73. The S&P 500 advanced 31.61 points, or 0.5%, to 6,631.96, while the Dow rose 124.10 points, or 0.3%, to 46,142.42.
Technology shares were key drivers of the rally. Intel (NASDAQ:INTC) soared 22.8% to its highest close in over a year after announcing a collaboration with Nvidia (NASDAQ:NVDA) to develop multiple generations of custom data center and PC products. Nvidia rose 3.5% and plans to invest $5 billion in Intel at $23.28 per share.
Cybersecurity firm CrowdStrike (NASDAQ:CRWD) jumped 12.8% following positive guidance and the announcement of a strategic partnership with Salesforce (NYSE:CRM) during its investor day on Wednesday.
Economic data showed initial jobless claims dropped more than expected to 231,000 for the week ending September 13, down 33,000 from the prior week’s revised 264,000. Economists had projected a decline to 240,000.
Meanwhile, the Conference Board reported that its leading economic index fell 0.5% in August, steeper than the anticipated 0.1% drop and following a revised 0.1% increase in July.
Semiconductor stocks pushed the Philadelphia Semiconductor Index up 3.6% to a record closing high. Broader tech sectors, including computer hardware and biotechnology, also contributed to gains in the Nasdaq.
Financial stocks rallied as well, with the KBW Bank Index climbing 1.4% and the NYSE Arca Broker/Dealer Index rising 1.3%.
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