Jan 22 (Reuters) - U.S. stock index futures rose on Monday, indicating further momentum in the S&P 500 after chip and megacap stocks drove the benchmark index to a record high last week, while corporate earnings and clues on rate cuts continued to top investors' radar.
Wall Street's main indexes stalled at the start of 2024 after the prior year's stellar run, as investors reassessed a quicker start to interest-rate cuts in light of mixed economic data and Federal Reserve policymakers playing down such bets.
A rally in chip stocks following bullish forecasts from Taiwan's TSMC and Super Micro Computer (SMCI.O), opens new tab last week, and heavyweight technology stocks steered the S&P 500 (.SPX), opens new tab to a record high of 4,842.07 points and an all-time closing high of 4,839.81 points on Friday, confirming a bull market since its October 2022 closing low.
The Philadelphia SE Semiconductor index (.SOX), opens new tab and the S&P 500 information technology index (.SPLRCT), opens new tab have jumped nearly 5% so far in January, among the top sectoral gainers, hitting all-time highs last week.
Nvidia (NVDA.O), opens new tab gained 1.0% in premarket trading after hitting its highest level on Friday, while Marvell Technology (MRVL.O), opens new tab, Qualcomm (QCOM.O), opens new tab and Micron Technology (MU.O), opens new tab climbed over 1% each.
Megacaps Alphabet (GOOGL.O), opens new tab, Meta Platforms (META.O), opens new tab and Tesla (TSLA.O), opens new tab also gained between 0.9% and 1.0%.
"Investors increasingly view these stocks as 'bulletproof' because even if the global economy loses steam, demand for AI products will still remain elevated, shielding corporate profits from any macroeconomic headwinds," said Marios Hadjikyriacos, senior investment analyst at XM.
Meanwhile, big-ticket earnings later this week from Netflix (NFLX.O), opens new tab, Tesla (TSLA.O), opens new tab, Abbott Laboratories (ABT.N), opens new tab, Intel (INTC.O), opens new tab and Johnson & Johnson (JNJ.N), opens new tab, among others, will be keenly watched for insights into the health of corporate America.
United Airlines Holdings (UAL.O), opens new tab, Brown & Brown (BRO.N), opens new tab and Zions Bancorp (ZION.O), opens new tab are set to detail their earnings after market close.
So far, 84.6% of the S&P 500 companies that have reported results have surpassed earnings expectations, LSEG data showed on Friday, compared with the 93.1% beat seen in the previous week.
On the economic data front this week, personal consumption expenditure (PCE)- the Fed's preferred inflation gauge, S&P Global PMI readings and an advance fourth-quarter GDP print will be crucial in assessing the central bank's next policy decision when it meets next week.
Traders have sharply pared bets of an at least 25-basis-point rate cut in March, currently standing at 46%, according to the CME Group's FedWatch Tool, from the over 80% chances seen by 2023-end.
At 7:09 a.m. ET, Dow e-minis were up 61 points, or 0.16%, S&P 500 e-minis were up 16.5 points, or 0.34%, and Nasdaq 100 e-minis were up 113.5 points, or 0.65%.
Among others, Boeing (BA.N), opens new tab lost 1.5% after the U.S. Federal Aviation Administration recommended airlines operating the company's 737-900ER jets inspect door plugs to ensure they are properly secured.
Renewable energy firm SolarEdge (SEDG.O), opens new tab gained 2.7% on plans to lay off about 16% of its global workforce.
B. Riley Financial (RILY.O), opens new tab tumbled 13.5% after a report said U.S. authorities are investigating the wealth manager's deals with a client who was linked to a securities fraud, and the use of his assets to help the investment bank obtain a loan from Nomura Holdings (8604.T), opens new tab.
Crypto stocks like Coinbase (COIN.O), opens new tab, Bitfarms and Riot Platforms (RIOT.O), opens new tab lost over 2.1% as bitcoin prices declined.
Reporting by Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Maju Samuel
