Stock futures rise on chip stocks bounce, encouraging inflation signs: Live updates

S&P 500 futures edged higher Wednesday morning following a rally driven by softer-than-expected inflation data. The S&P 500 closed up 0.5% and the Nasdaq Composite gained 0.7% as chipmakers led the advance and traders digested fresh evidence of cooling price pressures.

Technology stocks paced the session, with semiconductor names bouncing after recent weakness. The move extended gains from Tuesday's session, when inflation readings came in below consensus estimates and sparked a broad risk-on rotation.

Futures activity Wednesday morning suggested momentum would continue into the next session, with chip stocks providing the primary catalyst for overnight strength. The gains reflect growing confidence that the Federal Reserve's tightening cycle may be nearing an end as inflation moderates from multi-decade highs.

The Nasdaq's outperformance relative to the broader S&P 500 underscored renewed appetite for growth and rate-sensitive names, particularly in semiconductors, which had faced pressure earlier in the year from inventory concerns and demand uncertainty.