U.S. stock futures point to a modestly higher open on Friday, suggesting that equities could extend the gains seen in the previous session.
Markets have been buoyed by recent momentum, which has lifted the major indexes to new record highs. Despite September historically being one of the weaker months for stocks, the benchmarks have moved higher over the first weeks of the month.
Investor optimism has been fueled by lower interest rates, following the Federal Reserve’s 25-basis-point cut on Wednesday and its indication of two additional rate reductions later this year.
Traders will also be watching a scheduled phone conversation between President Donald Trump and Chinese President Xi Jinping, which could finalize an agreement on TikTok’s U.S. operations.
Trading activity may remain somewhat muted, as the absence of major U.S. economic reports could keep some participants on the sidelines. Uncertainty over the next significant market catalyst after the Fed’s rate cut may also weigh on volume.
On Thursday, equities extended their early gains throughout the day, building on a mixed session on Wednesday to reach new record closing highs. The Nasdaq led the advance, climbing 209.40 points, or 0.9%, to 22,470.73. The S&P 500 rose 31.61 points, or 0.5%, to 6,631.96, while the Dow added 124.10 points, or 0.3%, to 46,142.42.
Tech stocks played a key role in driving the rally, particularly Intel (NASDAQ:INTC), which surged 22.8% to its highest closing level in over a year. The jump followed Intel’s announcement of a partnership with Nvidia (NASDAQ:NVDA) to co-develop several generations of custom data center and PC products. Nvidia, which had seen losses in recent sessions, rose 3.5% and will invest $5 billion in Intel’s common stock at $23.28 per share.
CrowdStrike (NASDAQ:CRWD) also gained 12.8% after providing strong guidance and unveiling a strategic partnership with Salesforce (NYSE:CRM) during an investor day on Wednesday.
On the economic front, the Labor Department reported that initial jobless claims fell by more than expected to 231,000 for the week ending September 13, a decrease of 33,000 from the previous week’s revised total of 264,000. Economists had anticipated claims would drop to 240,000 from 263,000.
Separately, the Conference Board’s leading economic index fell 0.5% in August, following a revised 0.1% rise in July, a sharper decline than the 0.1% drop economists had expected.
Semiconductor stocks rallied alongside Intel, lifting the Philadelphia Semiconductor Index by 3.6% to a record closing high. Other technology sectors, including computer hardware and biotechnology, also showed notable strength, contributing to the Nasdaq’s advance.
Financials performed strongly as well, with the KBW Bank Index up 1.4% and the NYSE Arca Broker/Dealer Index rising 1.3%.
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