TLDR
- S&P 500 and Nasdaq futures rose Wednesday, building on record highs hit the previous session
- The AI trade is driving gains, with chip and tech stocks leading the rally
- Oil prices fell sharply, with Brent dropping to around $94 a barrel as US-Iran peace talks progress
- Bitcoin dipped 1.2% over 24 hours to $75,746
- Key earnings due Wednesday from Marvell Technology, Salesforce, Snowflake, and Abercrombie & Fitch
US stock futures edged higher on Wednesday morning, pointing to further gains after the S&P 500 and Nasdaq Composite both closed at record highs on Tuesday.
Futures on the S&P 500 rose 0.2% to 0.4%, while Nasdaq 100 futures climbed around 0.5% to 0.6%. Dow Jones futures were mixed, trading flat to up 0.5%.
The gains come as investors continue to bet on the artificial intelligence trade. Chip and tech stocks have been at the center of the rally in recent months, following a strong quarterly earnings season.
On Tuesday, memory-chip maker Micron Technology and flash-memory supplier Sandisk were standout performers, helping push both the S&P 500 and Nasdaq to new records. The Dow closed lower, missing out on the broader market’s gains.
“The artificial-intelligence trade has roared back to life in recent months, with investors piling into chip and tech stocks,” analysts noted.
Oil Falls as Iran Peace Talks Advance
Oil prices dropped on Wednesday as markets responded to progress in US-Iran peace negotiations.
Brent crude fell around 2.3% to $94.46 a barrel. West Texas Intermediate dropped nearly 3% to around $90 to $91 a barrel.
A full resolution to the conflict still isn’t certain. Secretary of State Marco Rubio said any deal would likely take a few more days to finalize. The Strait of Hormuz remains largely closed to commercial shipping traffic.
Alexander Guiliano, chief investment officer at Resonate Wealth Partners, said the stock market has largely tuned out Iran headlines. He said oil near $100 a barrel looks like a temporary shock, not a new normal.
Guiliano also said record highs tend to build on themselves. “When stocks hit record highs, that momentum can continue, as new highs tend to point to even more new highs,” he said.
The 10-year US Treasury yield slipped 2 basis points to 4.47%. The dollar edged 0.1% lower against a basket of currencies.
Crypto and Earnings in Focus
Bitcoin fell 1.2% over the past 24 hours to $75,746. The drop reflects a broader pullback in risk appetite, even as stock markets hold near highs.
Several major companies are set to report earnings on Wednesday. Marvell Technology, Salesforce, Snowflake, and Abercrombie & Fitch are all due to post results.
Earnings season is winding down, but these reports could give investors a fresh read on how AI spending and consumer demand are holding up.
Nasdaq 100 futures sat at around 30,264 points in pre-market trading.
Markets remain focused on two things: the AI-driven tech rally and the path toward an Iran peace deal.
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