{
  "type": "article",
  "title": "Chip earnings reignite the AI trade, lifting US index futures before a key inflation reading",
  "summary": "US index futures rose in European trade on Thursday as blowout forecasts from Micron and Qualcomm rekindled enthusiasm for AI and semiconductor stocks. Markets now turn to the Federal Reserve's preferred inflation gauge, the May PCE report.",
  "content": "Wall Street looked set for a brighter open on Thursday, with futures tied to the major US indices climbing in European trading as a fresh burst of optimism in chip and artificial intelligence names did the heavy lifting. Dow Jones futures edged up 0.15% to trade near 52,350, while S&P 500 futures gained 0.80% to around 7,490 and Nasdaq 100 futures jumped 2.25% to roughly 30,180.\n\nThe mood was a sharp turnaround from Wednesday's mixed regular session, when losses in heavyweight technology stocks dragged on the indices. That left the Nasdaq 100 down 0.4% and the S&P 500 off 0.1%, even though the Dow Jones managed to squeeze out a 0.34% gain.\n\nChip and AI stocks lead the charge\nThe latest leg higher was driven largely by strong semiconductor outlooks that revived interest in the artificial intelligence sector. Micron Technology soared more than 15% in after-hours trading after beating third-quarter expectations and issuing a massive revenue forecast of $50 billion for the current quarter, well above analysts' $43.58 billion estimate.\n\nQualcomm also rallied 13% after aggressively lifting its fiscal 2029 non-handset revenue target to $40 billion. The enthusiasm spread across the wider chip industry, pulling up other related names such as SanDisk, Western Digital and Marvell Technology.\n\nAll eyes on the PCE inflation report\nWith futures pointing higher, traders have shifted their focus to the upcoming US Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred inflation gauge. Economists expect the headline index to accelerate to 4.1% year-over-year in May, up from April's 3.8% print. Core PCE, meanwhile, is projected to edge up to an annual rate of 3.4%, a sign that underlying price pressures remain sticky.\n\nWhat the Dow Jones Industrial Average is\nThe Dow Jones Industrial Average is one of the oldest stock market indices in the world, made up of the 30 most heavily traded stocks in the US. Rather than being weighted by market capitalization, it is price-weighted, calculated by adding up the prices of its constituent stocks and dividing the total by a factor that currently stands at 0.152. The index was created by Charles Dow, who also founded the Wall Street Journal. Over the years it has drawn criticism for not being broadly representative, since it tracks just 30 large companies, unlike wider benchmarks such as the S&P 500.\n\nWhat moves the Dow\nA range of factors drive the Dow Jones Industrial Average. The biggest is the combined performance of its component companies, revealed through quarterly earnings reports. US and global macroeconomic data also play a part, as they shape investor sentiment. Interest rates set by the Federal Reserve matter too, because they affect the cost of credit that many large corporations depend on. That makes inflation, along with other figures that feed into the Fed's decisions, a major influence on the index.\n\nDow Theory and reading the trend\nDow Theory is a method, developed by Charles Dow, for identifying the primary trend of the stock market. A central step is to compare the direction of the Dow Jones Industrial Average and the Dow Jones Transportation Average, and to act only on trends where both move the same way. Volume serves as a confirming signal. The theory relies on peak and trough analysis and lays out three phases of a trend: accumulation, when smart money begins buying or selling; public participation, when the broader public joins in; and distribution, when smart money steps out.\n\nWays to trade the Dow\nThere are several ways to trade the index. One is through ETFs, which let investors treat the Dow as a single security instead of buying shares in all 30 companies, with the SPDR Dow Jones Industrial Average ETF (DIA) being a leading example. Futures contracts allow traders to bet on the index's future value, while options give the right, but not the obligation, to buy or sell it at a set price down the line. Mutual funds, in turn, let investors own a slice of a diversified basket of Dow stocks and gain exposure to the index as a whole.\n\nWhat this means for you\n• For investors: Strong chip earnings have revived risk appetite in US markets, which can ripple into AI and tech stocks worldwide.\n• What's next: If May PCE inflation rises to the expected 4.1%, it could shape the Fed's rate path and global market sentiment, so keep it in mind before making borrowing or investing moves.\n\nQuestions & Answers\n\n1. How much did US index futures rise on Thursday?\nDow Jones futures gained 0.15% to near 52,350, S&P 500 futures rose 0.80% to around 7,490, and Nasdaq 100 futures jumped 2.25% to roughly 30,180.\n\n2. What drove the rally?\nStrong semiconductor outlooks revived interest in the AI sector, led especially by results from Micron and Qualcomm.\n\n3. Why did Micron's stock surge?\nMicron beat third-quarter expectations and guided to $50 billion in revenue for the current quarter, well above analysts' $43.58 billion estimate, sending the stock up more than 15% in after-hours trading.\n\n4. How much did Qualcomm rally?\nQualcomm rose 13% after raising its fiscal 2029 non-handset revenue target to $40 billion.\n\n5. What are economists expecting from the PCE report?\nThey expect headline PCE to accelerate to 4.1% year-over-year in May from April's 3.8%, with core PCE edging up to 3.4%.\n\n6. What happened in Wednesday's session?\nTech losses pushed the Nasdaq 100 down 0.4% and the S&P 500 down 0.1%, though the Dow Jones still closed 0.34% higher.\n\n7. Which other chip stocks benefited from the rally?\nRelated names such as SanDisk, Western Digital and Marvell Technology also moved higher.",
  "url": "https://trendkia.com/en/market/chipa-knpaniyon-ke-damadara-natijon-se-wall-street-phyucharsa-men-uchhala-aba-nigahen-ameriki-mahngai-ke-ankaron-para-2927",
  "category": "Market",
  "publishedAt": "2026-06-25",
  "tags": [
    "Dow Jones futures",
    "PCE inflation",
    "US stock market",
    "Micron",
    "Qualcomm",
    "semiconductor stocks",
    "Federal Reserve",
    "AI rally"
  ],
  "language": "en",
  "site": "TrendKia"
}