U.S. Stock Futures Steady as Markets Await Fed Decision
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Stock futures are relatively subdued and mixed this morning after a powerful rally as investors shift attention from geopolitical headlines toward tomorrow's Federal Reserve decision and commentary from new Fed Chair Kevin Warsh. Markets have been encouraged by reports surrounding a preliminary U.S.-Iran agreement that could ease concerns over the Strait of Hormuz and reduce energy-related inflation pressure. Crude has continued falling with Brent and WTI moving lower as traders increasingly price in normalization of global supply and softer demand expectations. Consensus expectations for the Fed are no immediate rate move, but investors will closely watch Warsh's tone on inflation, labor conditions, and the path of policy through year-end.In pre-market trading, S&P 500 futures fell 0.04%, Nasdaq futures dipped 0.12% and Dow futures rose 0.21%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Rackspaceup 22% after disclosing a 15% workforce reduction plan intended to realign its workforce around how production AI is deployed and announcing an agreement for the phased deployment of an initial 30 MW footprint dedicated to AMD-based compute deployments across Rackspace's global data centersSpaceXup another 5% after its IPO on Friday, noting that it has finalized its agreement to acquire CursorValmontup 7% after providing FY29 guidance ahead of its investor dayOlinup 6% after the company and Huntsman announced that they have entered into a definitive agreement to combine in an all-stock merger of equalsRobinhoodup 1% after announcing a reduction in force that involves approximately 10% of the company's full-time employeesDOWN AFTER EARNINGS -Domodown 20%Dave & Buster'sdown 17%Vince Holdingdown 1%LOWER -Huntsmandown 7% after Olin and Huntsman announced that they have entered into a definitive agreement to combine in an all-stock merger of equalsEricssondown 2% after appointing Per Narvinger as CEO as Borje Ekholm has decided to step down
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Analyst Views on RXT
Wall Street analysts forecast RXT stock price to fall
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 7.530
Low
1.30
Averages
1.48
High
1.75
Current: 7.530
Low
1.30
Averages
1.48
High
1.75
About RXT
Rackspace Technology, Inc. is an end-to-end hybrid, hybrid cloud, and artificial intelligence (AI) solutions company. The Company designs, builds, and operates its customers’ cloud environments across all technology platforms, irrespective of technology stack or deployment model. The Company operates through two segments. Its Public Cloud segment is a service-centric, capital-light model providing value-added cloud solutions through managed services, elastic engineering and professional services offerings for customer environments hosted on the Amazon Web Services (AWS), Microsoft Azure and Google Cloud public cloud platforms. Its Private Cloud segment is a technology-forward, capital-intensive model providing managed service offerings for customer environments hosted in one of its data centers as well as in those owned by customers or by third parties. Private Cloud product portfolio includes Programmatic Infrastructure, Cloud Operating Systems, Platform-as-a-Service, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RXT, NBIS, and ARM Shares Surge on Bullish Growth Outlook
- RXT Stock Surge: RXT shares soared over 21% on Wednesday to $8.60, driven by a bullish note from RBC Capital which raised its price target from $2.50 to $4, highlighting the AMD partnership as a key growth catalyst.
- NBIS Expansion Optimism: NBIS shares jumped to a 52-week high of $297.93, as investors rewarded its aggressive expansion in AI cloud infrastructure, with expectations of joining the Nasdaq 100 Index this month boosting market confidence.
- ARM Stock Hits New High: ARM shares climbed to $444.80, a 52-week high, after Bernstein raised its price target from $300 to $500, citing its growing role in powering agentic AI workloads, with a projected revenue of $22 billion by 2030.
- Surge in AI Market Demand: All three companies benefited from a surge in AI-related demand, with RXT's stock up 676% year-to-date and NBIS up 212%, reflecting strong market demand for AI infrastructure and investor optimism.
See More
RXT, NBIS, and ARM Shares Surge on AI Growth Optimism
- RXT Stock Surge: Rackspace Technology shares soared over 21% on Wednesday to a 52-week high of $8.60, driven by a bullish note from RBC Capital highlighting its partnership with AMD, which is expected to significantly enhance the company's position in the enterprise AI platform market.
- Cost-Cutting Measures: Rackspace plans to implement a 10% workforce reduction to save up to $85 million annually, with part of the savings earmarked for engineering talent and AI solution development, thereby reinforcing its long-term AI strategy.
- NBIS Expansion Optimism: Nebius Group's shares jumped to $297.93 on Wednesday as investors rewarded its rapid expansion in AI cloud infrastructure, with expectations of joining the Nasdaq 100 Index this month further boosting market confidence.
- ARM Stock Hits New High: Arm Holdings shares climbed to $444.80 after Bernstein raised its price target from $300 to $500, reflecting market recognition of its growing role in AI workloads, with projected revenue reaching $22 billion by 2030.
See More
US-Iran Signs Peace Deal, Markets Turn Optimistic
- Peace Agreement Signed: The U.S. and Iran have signed a 14-point Memorandum of Understanding that extends the ceasefire and establishes a framework for a peace agreement, with a 60-day negotiation period that could enhance stability and economic recovery in the Middle East.
- Significant Economic Impact: As part of the deal, the U.S. will lift its naval blockade of Iran and restore pre-war military deployments within 30 days, while Iran will facilitate the reopening of the Strait of Hormuz, allowing commercial shipping to resume, which is expected to stabilize global oil prices.
- Federal Reserve Policy Dynamics: At Kevin Warsh's first meeting, the Federal Reserve decided to keep interest rates unchanged, although it now projects a rate hike in 2026, with inflation expectations raised to 3.6%, indicating a cautious stance that may affect future market liquidity.
- Positive Market Reaction: Following the signing of the U.S.-Iran peace agreement, U.S. stock futures rose broadly, with S&P 500 futures up about 0.81%, reflecting market optimism about future economic improvements, particularly against the backdrop of energy prices and inflation pressures.
See More
U.S. Stocks Decline Amid Fed Policy Decisions
- Fed Rate Decision: The Federal Reserve, under Chairman Kevin Warsh's first meeting, decided to keep the key interest rate at 3.50%-3.75% while hinting at a possible hike by the end of 2026, which raised concerns about future rate increases and led to a 1.2% drop in the S&P 500.
- Inflation Outlook Adjustment: The Fed raised its inflation forecast for the end of 2026 to 3.6% from 2.7% in March, indicating persistent inflationary pressures due to rising oil prices and a strong labor market, which could influence future monetary policy decisions.
- Market Reaction: Following the Fed's announcement, markets reacted to Warsh's emphasis on
See More
Rackspace Partners with AMD to Enhance AI Strategy
- Strategic Partnership Boosts Market Share: Rackspace's multi-year agreement with AMD to deploy AMD GPUs and EPYC processors across global data centers is expected to significantly enhance its market share in highly regulated sectors such as healthcare, financial services, energy, and government by 2028.
- Price Target Increase: RBC Capital raised Rackspace's stock price target from $2.50 to $4, with analyst Daniel Perlin noting that this partnership supports Rackspace's goal of becoming a leading enterprise AI provider, contributing to a more than 35% stock price increase over the past three days.
- Cost Reduction and Restructuring: Rackspace has reduced its workforce by approximately 10% to lower costs, anticipating up to $19 million in one-time restructuring charges while generating annual savings of up to $85 million, with part of these savings earmarked for investment in engineering talent and AI solutions.
- Retail Sentiment Turns Bullish: Retail sentiment on Stocktwits regarding Rackspace shifted from 'bullish' to 'extremely bullish', accompanied by extremely high message volumes, indicating strong institutional buying activity that has propelled the stock to a more than 730% increase this year.
See More
Rackspace Partners with AMD, Shares Surge Amid Workforce Cuts
- Partnership Expansion: Rackspace announced an expansion of its partnership with AMD, planning to deploy 30 MW of compute capacity for highly regulated enterprise clients from 2026 to 2028, which, while not significantly impacting AMD, is crucial for boosting market confidence in Rackspace.
- Stock Price Surge: Rackspace shares rallied by 21.2% on Tuesday, settling at a 5% gain, reflecting a positive market response to its new strategy, although its market cap remains below $1.5 billion, indicating cautious optimism among investors regarding its future.
- Workforce Reduction: The company revealed a 15% workforce reduction, expected to save between $75 million and $85 million annually, aimed at refocusing on AI opportunities, despite only achieving 2% revenue growth last quarter and still facing slight operating losses.
- Risks and Opportunities: Although Rackspace's stock has surged 543% in 2026, it still faces significant debt and market uncertainties, making future profitable growth uncertain, thus investors should approach with caution.
See More
RXT, NBIS, and ARM Shares Surge on Bullish Growth Outlook
- RXT Stock Surge: RXT shares soared over 21% on Wednesday to $8.60, driven by a bullish note from RBC Capital which raised its price target from $2.50 to $4, highlighting the AMD partnership as a key growth catalyst.
- NBIS Expansion Optimism: NBIS shares jumped to a 52-week high of $297.93, as investors rewarded its aggressive expansion in AI cloud infrastructure, with expectations of joining the Nasdaq 100 Index this month boosting market confidence.
- ARM Stock Hits New High: ARM shares climbed to $444.80, a 52-week high, after Bernstein raised its price target from $300 to $500, citing its growing role in powering agentic AI workloads, with a projected revenue of $22 billion by 2030.
- Surge in AI Market Demand: All three companies benefited from a surge in AI-related demand, with RXT's stock up 676% year-to-date and NBIS up 212%, reflecting strong market demand for AI infrastructure and investor optimism.
See More
RXT, NBIS, and ARM Shares Surge on AI Growth Optimism
- RXT Stock Surge: Rackspace Technology shares soared over 21% on Wednesday to a 52-week high of $8.60, driven by a bullish note from RBC Capital highlighting its partnership with AMD, which is expected to significantly enhance the company's position in the enterprise AI platform market.
- Cost-Cutting Measures: Rackspace plans to implement a 10% workforce reduction to save up to $85 million annually, with part of the savings earmarked for engineering talent and AI solution development, thereby reinforcing its long-term AI strategy.
- NBIS Expansion Optimism: Nebius Group's shares jumped to $297.93 on Wednesday as investors rewarded its rapid expansion in AI cloud infrastructure, with expectations of joining the Nasdaq 100 Index this month further boosting market confidence.
- ARM Stock Hits New High: Arm Holdings shares climbed to $444.80 after Bernstein raised its price target from $300 to $500, reflecting market recognition of its growing role in AI workloads, with projected revenue reaching $22 billion by 2030.
See More
US-Iran Signs Peace Deal, Markets Turn Optimistic
- Peace Agreement Signed: The U.S. and Iran have signed a 14-point Memorandum of Understanding that extends the ceasefire and establishes a framework for a peace agreement, with a 60-day negotiation period that could enhance stability and economic recovery in the Middle East.
- Significant Economic Impact: As part of the deal, the U.S. will lift its naval blockade of Iran and restore pre-war military deployments within 30 days, while Iran will facilitate the reopening of the Strait of Hormuz, allowing commercial shipping to resume, which is expected to stabilize global oil prices.
- Federal Reserve Policy Dynamics: At Kevin Warsh's first meeting, the Federal Reserve decided to keep interest rates unchanged, although it now projects a rate hike in 2026, with inflation expectations raised to 3.6%, indicating a cautious stance that may affect future market liquidity.
- Positive Market Reaction: Following the signing of the U.S.-Iran peace agreement, U.S. stock futures rose broadly, with S&P 500 futures up about 0.81%, reflecting market optimism about future economic improvements, particularly against the backdrop of energy prices and inflation pressures.
See More
U.S. Stocks Decline Amid Fed Policy Decisions
- Fed Rate Decision: The Federal Reserve, under Chairman Kevin Warsh's first meeting, decided to keep the key interest rate at 3.50%-3.75% while hinting at a possible hike by the end of 2026, which raised concerns about future rate increases and led to a 1.2% drop in the S&P 500.
- Inflation Outlook Adjustment: The Fed raised its inflation forecast for the end of 2026 to 3.6% from 2.7% in March, indicating persistent inflationary pressures due to rising oil prices and a strong labor market, which could influence future monetary policy decisions.
- Market Reaction: Following the Fed's announcement, markets reacted to Warsh's emphasis on
See More
Rackspace Partners with AMD to Enhance AI Strategy
- Strategic Partnership Boosts Market Share: Rackspace's multi-year agreement with AMD to deploy AMD GPUs and EPYC processors across global data centers is expected to significantly enhance its market share in highly regulated sectors such as healthcare, financial services, energy, and government by 2028.
- Price Target Increase: RBC Capital raised Rackspace's stock price target from $2.50 to $4, with analyst Daniel Perlin noting that this partnership supports Rackspace's goal of becoming a leading enterprise AI provider, contributing to a more than 35% stock price increase over the past three days.
- Cost Reduction and Restructuring: Rackspace has reduced its workforce by approximately 10% to lower costs, anticipating up to $19 million in one-time restructuring charges while generating annual savings of up to $85 million, with part of these savings earmarked for investment in engineering talent and AI solutions.
- Retail Sentiment Turns Bullish: Retail sentiment on Stocktwits regarding Rackspace shifted from 'bullish' to 'extremely bullish', accompanied by extremely high message volumes, indicating strong institutional buying activity that has propelled the stock to a more than 730% increase this year.
See More
Rackspace Partners with AMD, Shares Surge Amid Workforce Cuts
- Partnership Expansion: Rackspace announced an expansion of its partnership with AMD, planning to deploy 30 MW of compute capacity for highly regulated enterprise clients from 2026 to 2028, which, while not significantly impacting AMD, is crucial for boosting market confidence in Rackspace.
- Stock Price Surge: Rackspace shares rallied by 21.2% on Tuesday, settling at a 5% gain, reflecting a positive market response to its new strategy, although its market cap remains below $1.5 billion, indicating cautious optimism among investors regarding its future.
- Workforce Reduction: The company revealed a 15% workforce reduction, expected to save between $75 million and $85 million annually, aimed at refocusing on AI opportunities, despite only achieving 2% revenue growth last quarter and still facing slight operating losses.
- Risks and Opportunities: Although Rackspace's stock has surged 543% in 2026, it still faces significant debt and market uncertainties, making future profitable growth uncertain, thus investors should approach with caution.
See More
