Fed Hike Lifts Futures as AI Power and Chip Makers React
US futures rose after the Federal Reserve's first rate hike in three years, while Generac and Nebius surged on AI infrastructure deals.
US equity futures climbed early Thursday following a unanimous 25 basis point rate increase by the Federal Reserve, the first such move since 2023. The central bank signaled a 'higher for longer' stance, with Chair Kevin Warsh citing persistent inflation pressures that removed a dose of monetary accommodation. Despite the macro headwind, the market focused on specific corporate catalysts in the technology and energy sectors.
Nasdaq futures rose 0.9 percent and S&P 500 futures gained 0.7 percent as of 4:00 a.m. ET. The updated dot plot indicated that 16 of 18 officials expect at least one additional rate hike before year-end, a timeline Goldman Sachs suggests could arrive as early as October. This forward-looking guidance drove trading volume in stocks directly tied to data center expansion and AI computing capacity.
Generac Secures Major AI Supply Deal
Generac Holdings shares jumped 32 percent in premarket trading after securing a long-term supply agreement with Amazon. The contract values up to $8 billion for backup generators designed to power AI data centers. This deal positions Generac as a critical infrastructure provider for the growing energy demands of artificial intelligence facilities.
Cantor Fitzgerald maintains an Overweight rating on Generac, citing the Amazon agreement as the company's most significant data center-related development. The surge in share price reflects the market's valuation of reliable power solutions as a bottleneck for AI scaling. This move aligns with broader strength in clean energy and power infrastructure names.
GPU Pricing and AI Hardware Updates
Nebius Group shares soared 8 percent after announcing a second major price increase for on-demand NVIDIA GPU compute, effective October 1. The price hike underscores strong demand for high-performance computing resources amid rapid AI model development. Meanwhile, Nvidia remains in focus as competitor Huawei announced two new advanced AI chips slated for release in 2027.
Snap Inc shares rose 3 percent following the unveiling of Specs Intelligence, an AI assistant for its upcoming augmented reality smart glasses. Salesforce also edged higher after presenting a fiscal 2030 revenue target of $63 billion at Dreamforce, a figure that exceeded Wall Street expectations. These moves highlight how AI integration is becoming a core driver for software and hardware valuations.
Energy Legislation Boosts Utility Stocks
Bloom Energy, FuelCell Energy, and GE Vernova shares rose in early premarket trade after the House passed bipartisan legislation. The bill mandates large data-center operators to cover power-system upgrades required by their facilities. This regulatory shift reduces financial risk for utility providers and accelerates investment in grid infrastructure.
Bloom Energy is also promoting its 800V DC-native power technology specifically tailored for AI data centers. The legislative support provides a clearer path for monetizing grid upgrades, benefiting companies involved in both generation and distribution. This development complements the direct supply deals seen in the generator sector.
