US stock futures advanced during European trading hours on Thursday, driven by a sharp rally in the technology and artificial intelligence (AI) sectors. Dow Jones futures gained 0.17% to trade around 52,710, while S&P 500 futures and Nasdaq 100 futures rose 0.34% and 0.74%, trading near 7,550 and 29,690, respectively [1]. The surge in tech futures followed reports that Beijing will permit leading Chinese AI firms to purchase a limited supply of Nvidia's H200 chips. Chinese officials have reportedly informed major companies, including Alibaba, ByteDance, and DeepSeek, that they may soon receive approval to procure these processors [1].
Despite the positive momentum in tech and AI stocks, traders remain cautious due to concerns that elevated energy prices could reignite inflation. This could potentially prompt the Federal Reserve to consider an earlier-than-expected interest rate hike. The cautious sentiment follows a decline in the previous trading session, where the Dow Jones and S&P 500 fell by 1.09% and 0.28%, respectively, weighed down by losses in materials, financials, and real estate sectors. In contrast, the Nasdaq 100 managed a 0.2% gain, supported by strength in energy and technology stocks [1].
The release of the Federal Reserve's June Meeting Minutes highlighted a growing divide among policymakers during Kevin Warsh’s first meeting as FOMC Chairman on June 16–17. Some committee members anticipated that the benchmark rate, currently at a target range of 3.50% to 3.75%, would likely remain unchanged or be lowered by year-end. However, a more hawkish group argued that persistent price pressures might necessitate a rate hike before the end of the year [1].
CONCLUSION
US stock futures are climbing, led by gains in the tech and AI sectors after news that Chinese firms may soon access Nvidia's H200 chips. However, concerns about inflation and potential Fed rate hikes are tempering market optimism. The market remains sensitive to both sector-specific developments and broader macroeconomic risks.