US STOCKS-Nasdaq, S&P 500 futures rise as summer trading begins
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Updated at 7:11 am ET/1111 GTM
By Lisa Pauline Mattackal and Johann M Cherian
June 3 (Reuters) - Nasdaq futures led Wall Street gains on Monday and were on track to begin June's first trading day on a positive as megacap growth stocks i up, recovering some ground after closing Friday's session in the red.
Megacap stocks including Apple AAPL.O, Meta META.O and Alphabet GOOGL.O gained between 0.3% and 0.4% in premarket trading, buoyed by a dip in U.S. Treasury yields. MKTS/GLOB
Artificial intelligence leader Nvidia NVDA.O jumped 2.7%. Chief executive Jensen Huang said on Sunday the company's -generation AI chip platform would be rolled out in 2026.
The technology sector .SPRLCT closed slightly lower on Friday as investors rebalanced their month-end portfolios.
However, despite the S&P 500 .SPX and the Nasdaq .IXIC snapping their five-week winning streaks on Friday, all three of Wall Street's main indexes ended May with strong gains.
The S&P 500 rose 4.8%, the Dow climbed 2.3% and the tech-heavy Nasdaq rose 7% last month, as strong earnings and hopes of easing monetary policy buoyed Wall Street's biggest stocks.
Investors increased bets on a September start to interest-rate cuts by the Federal Reserve on Friday, according to the CME's FedWatch tool, after inflation indicated a potential cooling of price pressures as measured by the Personal Consumption Expenditures Price Index.
"Solid earnings and the outlook of lower rates may keep risk sentiment underpinned," analysts at Generali Investments said in a .
"That said, an advanced equity rally, depressed volatility and elevated investor positioning in risk assets reflect a very high degree of market optimism that keeps the risk of temporary setbacks high."
Key economic data due this week, including surveys on the manufacturing and services sector, factory orders and Friday's closely watched payrolls report, will provide additional cues on the health of the U.S. economy.
May's reading of the Institute for Supply Management's Manufacturing Purchasing Managers' Index is due later in the day.
At 7:11 a.m. ET, Dow e-minis 1YMcv1 were up 3 points, or 0.01%, S&P 500 e-minis EScv1 were up 9.75 points, or 0.18%, and Nasdaq 100 e-minis NQcv1 were up 83 points, or 0.45%.
Among others, shares of GameStop GME.N soared 85.3% after a weekend Reddit post from stocks influencer Keith Gill, also known as "Roaring Kitty," showed a $116 million bet on the gaming retailer.
Other so-called meme stocks such as AMC AMC.N and Tupperware TUP.N rose 27.5% and 10.3%, respectively, while retail-focused brokerage Robinhood HOOD.O gained 2.9%.
Chipmaker Advanced Micro Devices AMD.O rose 1.6% after it unveiled its latest AI processors at an industry event and detailed plans to take on competitor Nvidia.
Paramount Global PARA.O shares gained 6.8% after a report on Sunday said Skydance Media had sweetened its buyout offer for the company to $15 per share.
U.S.-listed shares of Arm Holdings ARM.O O9Ty.F added 2.3% after the UK chip designer said it expects 100 billion of its devices worldwide to be ready for artificial intelligence by the end of year.
Waste Management WM.N will buy medical waste disposal company Stericycle SRCL.O in a deal valued at $7.2 billion, the companies said, sending shares of the bigger firm down 1.3 % in choppy trading.
(Reporting by Lisa Mattackal and Johann M Cherian in Bengaluru; Editing by Pooja Desai)