Investing.com-- U.S. stock index futures steadied in evening deals on Tuesday after a rebound in market darling Nvidia and other chipmakers supported Wall Street indexes.
But investors remained on edge before key inflation data due later in the week, which is likely to factor into the outlook for interest rates.
S&P 500 Futures steadied at 5,535.75 points, while Nasdaq 100 Futures were flat at 19,973.50 points by 19:17 ET (23:17 GMT). Dow Jones Futures fell 0.1% to 39,484.0 points.
Nvidia rebound buoys Wall Street
Artificial intelligence darling NVIDIA Corporation (NASDAQ:NVDA) surged nearly 7% on Tuesday, rebounding from three straight days of steep losses, which were sparked by profit-taking and creeping doubts over AI demand.
Gains in the stock spilled over into its chipmaking peers, and also helped bolster Wall Street indexes against losses in other sectors. Nvidia rose 0.9% in after-hours trading.
Economically sensitive sectors remained weak in anticipation of PCE price index data later this week. The reading is the Federal Reserve’s preferred inflation gauge, and is likely to factor into the central bank’s plans to begin trimming interest rates.
Markets widely expect the Fed to announce at least one 25 basis point cut in September, although the central bank has given no such signal. The Fed had recently also slashed its outlook for rate cuts this year.
The S&P 500 rose 0.4% to 5,469.30 points, while the NASDAQ Composite surged 1.3% to 17,720.05 points on Tuesday. The economically sensitive Dow Jones Industrial Average lagged, falling 0.8% to 39,112.16 points.
While Wall Street’s trajectory is likely to be determined by the path of interest rates, an AI-fueled boom in tech kept the S&P 500 and the Nasdaq close to record highs.
Fedex surges on positive profit forecast
Delivery and logistics giant FedEx Corporation (NYSE:FDX) surged in aftermarket trading, rising 14% after it forecast its fiscal 2025 profit just above Wall Street estimates.
While the company clocked stronger quarterly earnings as it slashed expenses and tightened its operations, demand for package deliveries still remained weak. Fedex is seen as a bellwether for U.S. economic activity, especially through its delivery volumes, which remained weak.
Among other aftermarket movers, electric vehicle maker Rivian Automotive Inc (NASDAQ:RIVN) jumped 46% after it entered a joint venture with Volkswagen (ETR:VOWG_p) AG (ETR:VOWG), which will see the German automaker invest an initial $1 billion in Rivian.
Rival Lucid Group Inc (NASDAQ:LCID) rose 10%.
