The US Equity-index futures rose, signaling that the rally that pushed Wall Street gauges to record highs on strong megacap tech earnings may have to continue. The yen edged lower, paring some of its gains due to possible intervention by Japan.

Contracts for the S&P 500 index rose 0.2% and contracts for the tech-heavy Nasdaq 100 rose 0.1% after the underlying gauge closed at an all-time high on Thursday following solid earnings from tech megacaps. Shares of Apple Inc. advanced in extended trading after forecasting strong earnings. The Nikkei stock index rose in Japan, with many Asian markets closed for the holiday.

Meanwhile, the yen was slightly weaker at around 157.14 per dollar after rising as high as 155.57 on Thursday. The strengthening came as Japan intervened after hours in the foreign-exchange market after officials issued a “final” warning to investors against selling the currency.

The Finance Ministry in Tokyo did not respond to requests for comment. However, Japan’s Nikkei newspaper quoted a government official as reporting that the government bought yen and sold dollars. Some traders and strategists also said the suddenness of the move signaled action.

Traders had plenty to contend with in April with oil prices unresolved over the Middle East crisis, but US stocks posted their best month since 2020 thanks to a resurgence in technology stocks and artificial intelligence trade. Investors will test that narrative in the coming weeks, to see if AI-led momentum can offset price pressures and geopolitical risks.

“As long as the economy continues to grow and companies are able to grow earnings, we may see higher stock prices even with higher energy prices and inflation,” said Chris Zachrelli at Northlight Asset Management.

While US gross domestic product rose during the first quarter, driven by a large jump in AI business investment, it showed a sharp increase in inflationary pressures in March as the war pushed up gasoline prices. The personal consumption expenditure price index – the Fed’s favorite measure of inflation – rose 0.7% last month, the most since 2022.

Inflation worries are rising with European Central Bank policymakers likely to raise interest rates at their next meeting in June unless there are positive developments in energy prices and an end to the Iran war, according to people familiar with the situation.

“Investors will be watching how the Federal Reserve navigates this backdrop, with a more dovish chair likely to be its most divided committee in decades,” Brett Canwell said.