Dow futures climb 125 points: 5 things to know before Wall Street opens

• Chipmakers led premarket gains with Nvidia, Broadcom, and Micron rising 0.8% to 4.4% as investors bought back into the sector after Friday's sharp retreat
• Applied Digital surged 11.5% premarket after signing a 15-year hyperscaler lease expected to generate approximately $5.2 billion in revenue, highlighting strong AI data-center demand
• May CPI data due Wednesday has become the key macro test, as stronger-than-expected jobs data raised fears the Fed may keep rates higher for longer or even consider rate increases

Market Summary

Market Movement:

U.S. stock futures rallied Tuesday morning, with Dow futures climbing 125 points (+0.25%), S&P 500 futures rising 0.39%, and Nasdaq 100 futures gaining 0.67%. The advance follows a two-day recovery after recent volatility.

Key Sector Performance:

Semiconductor stocks led the rebound, with Nvidia, Broadcom, and Micron trading 0.8% to 4.4% higher premarket as investors bought back into the sector following Friday's sharp selloff.

Major Corporate Developments:

• Applied Digital surged 11.5% premarket after securing a 15-year hyperscaler lease at its Delta Forge 2 site, expected to generate approximately $5.2 billion in revenue over the term
• GSK agreed to acquire cancer-drug developer Nuvalent for $10.6 billion ($124 per share), representing a 40% premium
• SpaceX is preparing a record-setting IPO with an expected valuation of $1.75 trillion
• OpenAI has confidentially filed for a U.S. IPO

Geopolitical Impact:

Middle East tensions eased as Iran and Israel paused attacks following a U.S. appeal for ceasefire. This development lifted risk sentiment and helped ease oil prices, reducing inflation concerns tied to energy costs.

Critical Upcoming Catalyst:

Wednesday's May Consumer Price Index (CPI) report is the market's primary focus. Following Friday's stronger-than-expected jobs report, investors are concerned the Federal Reserve may maintain tighter policy longer or potentially raise rates. A hot CPI reading could pressure rate-sensitive technology stocks, while softer inflation data could extend the current rally in high-multiple growth names.

Market Sentiment: Bullish (72/100 AI rating)