Dow Jones, S&P 500 and Nasdaq futures are currently pointing to a higher open on Wednesday, with stocks likely to see further upside following the strength seen in the previous session.
Technology stocks may help lead the way higher once again, as reflected by the 0.8 percent advance by the tech-heavy Nasdaq 100 futures.
Shares of Micron Technology (NASDAQ:MU) are surging by 7.6 percent in pre-market trading after soaring by 19.3 percent on Tuesday following a substantial price target increase by UBS.
An extended slump by the price of crude oil may also generate early buying interest, with U.S. crude oil futures plummeting by 6 percent amid persistent optimism about a U.S.-Iran peace deal.
“Brent crude oil prices remain below $100 per barrel – a good barometer of how talks between Tehran and Washington are perceived to be progressing,” said AJ Bell investment director Russ Mould.
He added, “The hope will be that this is finally the week when a real breakthrough is achieved, but should negotiations fail then we could see market patience wear thin.”
However, traders may be somewhat reluctant to make significant moves ahead of the release of key U.S. economic data on Thursday, including the Federal Reserve’s preferred readings on consumer price inflation.
With technology stocks showing a substantial move to the upside, the tech-heavy Nasdaq surged to a new record closing high on Tuesday. The S&P 500 also advanced to a new record closing high, while the narrower Dow showed a modest move to the downside.
The Dow dipped 118.02 points or 0.2 percent to 50,461.68, but the S&P 500 climbed 45.65 points or 0.6 percent to 7,519.12 and the Nasdaq shot up 312.21 points or 1.2 percent to 26,656.18.
The jump by the tech-heavy Nasdaq came amid a sharp increase by shares of Micron Technology (NASDAQ:MU), with the chipmaker soaring by 19.3 percent.
Micron surged after UBS increased its price target on the company’s stock to $1,625, which would reflect a more than 100 percent spike compared to its closing price last Friday.
With Micron leading the way higher, semiconductor stocks showed a substantial move to the upside, driving the Philadelphia Semiconductor Index up by 5.5 percent to a record closing high.
Considerable strength was also visible among airline stocks, with the NYSE Arca Airline Index soaring by 4 percent to its best intraday closing in almost three months.
Gold, steel and networking stocks also saw notable strength, while energy stocks came under pressure amid a steep drop by the price of crude oil.
U.S. crude oil futures plunged by nearly 3 percent amid persistent optimism about an end to the U.S. war with Iran. President Donald Trump said in a post on Truth Social on Monday that negotiations with Iran “are proceeding nicely!”
Traders seemingly shrugged off news the U.S. military launched what it described as “self-defense” strikes in southern Iran, targeting missile sites and boats near the Strait of Hormuz.
In U.S. economic news, a report released by the Conference Board showed a modest deterioration in consumer confidence in the month of May.
The Conference Board said its consumer confidence index dipped to 93.1 in May from an upwardly revised 93.8 in April.
Economists had expected the consumer confidence index to edge down to 92.0 from the 92.8 originally reported for the previous month.