Wall Street is gearing up for a positive start on Wednesday, with major stock indexes rising as chipmakers and growth stocks regain momentum in light trading. This resurgence comes ahead of the release of fundamental economic data, comments from the Federal Reserve, and an extended holiday weekend.
After experiencing three consecutive declines, both the Dow Jones and S&P 500 are expected to recover today. The recent slowdown was marked by pressure on most mega-cap stocks and the struggle to maintain bullish momentum in the market.
Investors’ attention is focused on remarks by Federal Reserve Board Governor Christopher Waller, who will address the Economic Club of New York later in the day.
Key economic indicators are anticipated, including the personal consumption expenditure (PCE) price index, which is scheduled to be released on Good Friday, coinciding with the close of the US stock market. Any unexpected rise in inflation could temper market optimism about possible early rate cuts.
Also coming out this week are final fourth-quarter GDP figures, the University of Michigan’s consumer confidence reading, and weekly jobless claims data.
The optimism driving the market comes from recent gains fueled by artificial intelligence (AI) and expectations of future interest rate cuts from the Federal Reserve.
Traders currently assign a 70% probability that the Federal Reserve will begin its easing cycle in June, according to the CME FedWatch tool.
Robert Pavlik, senior portfolio manager at Dakota Wealth Management, said: “The market is just consolidating a little… people are just wondering what the next catalyst will be to drive stock prices.” He highlighted the continued focus on AI, particularly in the technology sector and semiconductor companies.
In premarket trading, Dow e-minis were up 145 points, S&P 500 e-minis were up 18.25 points, and Nasdaq 100 e-minis were up 70.25 points.
Growth stocks, particularly in the mega-cap category, showed positive movement before the opening bell. Tesla gained about 1%, while AI leader Nvidia advanced 0.5%. Additionally, several chip stocks posted gains, with Micron Technology and Marvell Technology among those with notable results.
Biotech company Moderna rose 3.9% following news of a major financing deal with Blackstone’s life sciences investment platform. Merck & Co also saw a notable 5.2% increase after receiving FDA approval for its therapy targeting high blood pressure.
Trump Media & Technology Group saw a notable 13.2% jump after its successful Nasdaq debut, while Robinhood Markets rose 7% after launching a new credit card.
However, GameStop faced an 18.1% drop after reporting lower fourth-quarter revenue and announcing job cuts as part of cost-cutting measures.
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