Dow Jones Futures Surge Amid AI Momentum and Fed Policy Anticipation

Dow Jones Industrial Average futures climbed 280 points, or 0.76%, in early premarket trading, reflecting broad market optimism ahead of the U.S. open. The rally was fueled by strong performance from major technology stocks, with NVIDIA (NVDA) posting a 4.2% advance on earnings momentum and AI infrastructure demand. Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL) also contributed significantly, each rising between 2.1% and 3.3% in overnight trading. The upward move comes amid heightened speculation over Federal Reserve policy direction. With inflation data showing a modest 3.1% year-over-year increase in November, markets are pricing in a 68% probability of a rate cut in March 2026, up from 44% a month ago. This shift has boosted equity valuations, especially in high-growth sectors like semiconductors and cloud computing. NVDA's market capitalization now exceeds $2.3 trillion, making it the third-largest company in the U.S. by value. Meanwhile, MSFT and AAPL remain above $3.2 trillion and $2.8 trillion, respectively. These valuations reflect strong investor confidence in AI integration across enterprise and consumer platforms. The rally has broad implications for institutional and retail investors alike. ETFs tracking the Nasdaq-100 and S&P 500 are seeing inflows of over $1.8 billion in the past five days. Financial institutions are adjusting risk exposure, with several hedge funds increasing positions in AI-related equities while reducing duration in fixed-income portfolios.