Nasdaq futures rose after artificial-intelligence stocks rallied in Asia and Europe, though investor sentiment remained muted as oil prices held close to $110 a barrel.
After volatile trade in the last session ended with the Nasdaq closing flat, futures for the tech-heavy index gained 0.75% on Wednesday. Investor concerns remain around the business models of cloud-computing companies and the impact of higher borrowing rates on the AI ecosystem. Still, chip makers and data center stocks rose across the board premarket. Micron and Intel each gained around 3.4% premarket as investors moved back into AI names that fell sharply last week.
The rally followed signs of recovery for AI stocks in Asia. South Korea's chip-dominated Kospi closed 3.3% higher. In Japan, the Nikkei 225 rose 0.85%. AI stocks rallied in Europe, too, as the continent-wide Stoxx 600 nudged up 0.2%.
Futures for the Dow Jones Industrial Average were flat. Contracts for the S&P 500--which doesn't include standout premarket performer SpaceX--rose 0.25%. Investors jumped on the Elon Musk-run group's first profits as a public company, lifting shares 9%. Earnings on Tuesday from streamer Netflix were less well received, with shares falling more than 6% premarket.
Treasurys were little moved as investors continue to price a high probability of the Federal Reserve standing pat on rates next week. Markets see an 85% likelihood the Fed will hold, according to LSEG. Ten-year Treasury yields were steady at 5.113%, while 30-year yields were similarly unmoved at 5.242%. Two-year yields slipped slightly to 4.782%.
Oil prices rose as ships transiting through the Strait of Hormuz faced continued attacks, while U.S. industry data showed a decline in crude product inventories. Benchmark Brent crude contracts rose 0.8% to $109.7 a barrel.
The dollar edged higher but held close to three-week lows. Bitcoin nudged back above $83,000, while New York gold futures were little moved at $4,141 a troy ounce.
For the day ahead, AI investors will look to narrative-shaping earnings from Meta, Texas Instruments and Lam Research and others after the closing bell. The economic calendar remains light, though the U.S. Treasury is set to hold a $13 billion 20-year bond auction.
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