U.S. stock index futures stabilized on Tuesday afternoon as Nvidia and other chipmakers rallied, boosting Wall Street indexes. However, investors remained cautious ahead of key inflation data to be released later in the week, which could impact interest rate expectations. Nvidia, a leading artificial intelligence company, recovered nearly 7% after recent losses, helping its peers in the chipmaker sector. Economically sensitive sectors showed weakness as investors awaited the inflation data, which could influence the Federal Reserve’s decisions on interest rates. The Fed is expected to announce at least one rate cut, but no official signal has been given. FedEx stock soared 14% in after-hours trading after forecasting earnings above Wall Street estimates for fiscal 2025. While the company reported stronger profits due to cost-cutting measures, weak demand for package deliveries remains a concern. Another notable gainer was Rivian Automotive, which surged 46% after announcing a joint venture with Volkswagen AG involving a $1 billion investment from the German automaker. Rivian’s rival Lucid Group Inc also saw a 10% increase in its stock price. The technology-driven boom in AI and electric vehicles, along with ongoing interest rate speculation, continue to influence Wall Street’s performance, with the S&P 500 and Nasdaq hovering near record highs.
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