US equity futures extended their rally, lifted by a surge in AI stocks as traders awaited key PCE inflation data. President Donald Trump formally unveiled his Board of Peace initiative during the World Economic Forum in Davos, Switzerland. The announcement came amid a backdrop of market optimism but also geopolitical tension.

The new board, a Trump administration initiative, aims to address global conflicts through dialogue and economic cooperation. Its launch at Davos, a forum for global business and political leaders, signals an attempt to shape international policy discussions. The move coincides with a volatile week for the global bond market, as noted by Priya Misra of JPMorgan Asset Management.

Investors are now parsing the geopolitical implications alongside domestic economic signals. The Board of Peace adds a layer of uncertainty, even as AI-driven tech stocks provide a strong market tailwind. All eyes remain on the upcoming PCE data for clues on the Federal Reserve's rate path and the sustainability of the current equity rally.