Key facts
- US stock index futures rose on Friday, driven by AI optimism.
- Chip stocks Advanced Micro Devices, Marvell, Cerebras and Intel rose 2% each in premarket trading.
- Akamai Technologies shares surged 21% after signing a $11.6 billion cloud services deal with AI lab Anthropic.
- Meta's AI application Muse and device Charm are gaining traction among young consumers.
- Meta shares were set for their fifth-straight week of gains, nearing a $2 trillion market value.
- Brent crude prices hovered above $100 a barrel, and the 10-year Treasury note yield was at 5.1%.
US stock index futures edged higher on Friday, with enthusiasm for artificial intelligence stocks providing a buffer against concerns over elevated oil prices and rising Treasury yields. Chipmakers and megacap technology companies saw premarket gains.
Akamai Technologies shares surged 21% after the IT services company announced a $11.6 billion cloud services deal with AI lab Anthropic. Optimism in AI sectors was further fueled by the growing popularity of Meta's AI application Muse and its integrated device, Charm, among young consumers. Meta's stock was on track for its fifth consecutive weekly gain, nearing a $2 trillion market valuation.
However, upward momentum was tempered by Brent crude prices holding above $100 a barrel and the 10-year Treasury yield reaching 5.1%, driven by inflation worries stemming from ongoing conflicts in Iran and Ukraine, and increasing government debt. A report suggesting progress in US-Iranian negotiations to de-escalate tensions offered some relief.
Traders are pricing in a 71% probability of a 25-basis-point interest rate hike by the Federal Reserve in October, an increase from earlier in the week. Policymakers, including Federal Reserve officials John Williams, Jeffrey Schmid, and Beth Hammack, are expected to reiterate a restrictive monetary policy stance in their upcoming speeches. Investors also await August durable goods data.