Nasdaq and S&P 500 futures ticked up on Wednesday, after stock markets stabilized in the prior session in the wake of sharp declines earlier in the week that were inspired by a new Chinese AI model , News.az reports citing Investhing.
Several Big Tech names are set to publish quarterly results after the closing bell, while traders will also be keeping an eye on a Federal Reserve interest rate announcement. Meanwhile, Dutch chipmaker ASML (AS:ASML) reports solid demand in the fourth quarter and luxury goods titan LVMH unveils disappointing sales growth.
1. Nasdaq, S&P futures higher
Nasdaq 100 futures and S&P 500 futures both inched higher on Wednesday, with investors looking ahead to key earnings from mega-cap tech companies and a Federal Reserve interest rate decision -- all while assessing the fallout from a steep sell-off earlier in the week sparked by a low-cost AI model from Chinese start-up DeepSeek.
By 03:30 ET (08:30 GMT), the Nasdaq futures contract had gained 96 points or 0.5%, S&P 500 futures had risen by 8 points or 0.1%, and Dow futures had dipped by 34 points or 0.1%.
All three of the indices ended higher on Tuesday. In particular, the tech-heavy Nasdaq Composite advanced by 392 points or 2.0%, recovering some losses logged on Monday which stemmed from fears that the emergence of DeepSeek's model could render massive Big Tech spending on AI unwarranted.
Shares in AI-darling Nvidia (NASDAQ:NVDA) were among the main drivers of the Nasdaq, climbing by 8.9% following a sharp drop on Monday that wiped a Wall Street-record $593 billion off its market value.
"The consensus narrative aggressively pushed back on DeepSeek-linked negativity, [with] some dismissing the product and attendant worries about it having a detrimental impact on industry capex while others offered praise, predicting it would trigger an acceleration in demand," analysts at Vital Knowledge said in a note to clients.
2. Tech earnings ahead
Focus now turns to a raft of quarterly results from major tech industry players -- and recent stock market drivers -- this week.
Software titan Microsoft (NASDAQ:MSFT), Facebook-owner Meta Platforms (NASDAQ:META), and electric vehicle maker Tesla (NASDAQ:TSLA) are due to report after the closing bell on Wall Street on Wednesday, followed by iPhone-manufacturer Apple (NASDAQ:AAPL) on Thursday.
The four groups are all part of the so-called "Magnificent 7" collection of large tech firms which have underpinned strong gains in stock markets over much of the past two years.
AI will likely be a central topic for analysts as they pour through the numbers, especially after Monday's DeepSeek-inspired rout in equities. Silicon Valley executives have previously stated their intent to shell out billions of dollars on developing their AI infrastructure, all in a bid to eventually monetize the nascent technology.
However, some doubts around the expenditures have arisen since DeepSeek's AI model, which was made with lower-capacity chips and for around a mere $6 million, shot up in popularity. Investors may be keen to hear what the tech sector's leaders have to say about the matter, analysts say.
3. Fed decision
The Federal Reserve is widely expected to leave interest rates unchanged following its latest two-day meeting on Wednesday.
In a note to clients, analysts at ING aruged the Fed would need to see "significant weakness" in the American economy as well as lower inflation in order to justify cutting rates down from their current range of 4.25% to 4.5%.
"For the moment, the job market and wages are gradually cooling, but not enough for resuming easing," they added. According to market pricing, the conditions for a reduction will not be met until June, they noted.
Instead, attention could center around Fed Chair Jerome Powell's press conference, with observers anticipating that he will be asked to comment on this week's stock market turmoil and the central bank's independence in the face of political pressure from U.S. President Donald Trump.
4. ASML, LVMH report
Investors were buoyed on Wednesday by strong results from Dutch semiconductor giant ASML, helping sentiment following the global tech slump earlier in the week.
ASML's stock price soared 10% after the biggest supplier of computer chip-making equipment posted much better than expected demand for its most advanced tools in the fourth quarter, even as DeepSeek’s low-cost model raises concerns over AI spending.
Elsewhere, shares in LVMH fell 4% as sales growth at the luxury goods giant failed to impress, following a string of solid returns from rivals and recent price gains.
Remy Cointreau 's(EPA:RCOP) stock also dipped after the French spirits maker said it now expects the decline in full year 2024/25 group sales to be close to 18%, at the lower end of its guidance target, citing a lack of visibility around the timing of a recovery in demand in the U.S. and worsening market conditions in China.
5. Oil muted
Oil prices steadied Wednesday after an uptick in U.S. crude stockpiles weighed on prices, adding to global growth concerns already exacerbated by the possible impact of President Trump's sweeping tariff plans.
By 03:31 ET, the US crude futures (WTI) gained 0.2% to $73.96 per barrel, while the Brent contract added 0.1% to $76.53 a barrel.
US crude oil inventories grew by 2.86 million barrels last week, according to data from the industry body American Petroleum Institute, after nine straight weeks of draws, as cold weather pushed up demand for heating and travel activity rose during the year-end holidays.
The Energy Information Administration, the statistical arm of the U.S. Department of Energy, is due to release its weekly report later in the session.
Oil benchmarks fell to multi-week lows early this week, dented by worries over increased U.S. production, the Trump administration’s plans to impose trade tariffs on major economies, and weak economic data from China.
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Several Big Tech names are set to publish quarterly results after the closing bell, while traders will also be keeping an eye on a Federal Reserve interest rate announcement. Meanwhile, Dutch chipmaker ASML (AS:ASML) reports solid demand in the fourth quarter and luxury goods titan LVMH unveils disappointing sales growth.
1. Nasdaq, S&P futures higher
Nasdaq 100 futures and S&P 500 futures both inched higher on Wednesday, with investors looking ahead to key earnings from mega-cap tech companies and a Federal Reserve interest rate decision -- all while assessing the fallout from a steep sell-off earlier in the week sparked by a low-cost AI model from Chinese start-up DeepSeek.
By 03:30 ET (08:30 GMT), the Nasdaq futures contract had gained 96 points or 0.5%, S&P 500 futures had risen by 8 points or 0.1%, and Dow futures had dipped by 34 points or 0.1%.
All three of the indices ended higher on Tuesday. In particular, the tech-heavy Nasdaq Composite advanced by 392 points or 2.0%, recovering some losses logged on Monday which stemmed from fears that the emergence of DeepSeek's model could render massive Big Tech spending on AI unwarranted.
Shares in AI-darling Nvidia (NASDAQ:NVDA) were among the main drivers of the Nasdaq, climbing by 8.9% following a sharp drop on Monday that wiped a Wall Street-record $593 billion off its market value.
"The consensus narrative aggressively pushed back on DeepSeek-linked negativity, [with] some dismissing the product and attendant worries about it having a detrimental impact on industry capex while others offered praise, predicting it would trigger an acceleration in demand," analysts at Vital Knowledge said in a note to clients.
2. Tech earnings ahead
Focus now turns to a raft of quarterly results from major tech industry players -- and recent stock market drivers -- this week.
Software titan Microsoft (NASDAQ:MSFT), Facebook-owner Meta Platforms (NASDAQ:META), and electric vehicle maker Tesla (NASDAQ:TSLA) are due to report after the closing bell on Wall Street on Wednesday, followed by iPhone-manufacturer Apple (NASDAQ:AAPL) on Thursday.
The four groups are all part of the so-called "Magnificent 7" collection of large tech firms which have underpinned strong gains in stock markets over much of the past two years.
AI will likely be a central topic for analysts as they pour through the numbers, especially after Monday's DeepSeek-inspired rout in equities. Silicon Valley executives have previously stated their intent to shell out billions of dollars on developing their AI infrastructure, all in a bid to eventually monetize the nascent technology.
However, some doubts around the expenditures have arisen since DeepSeek's AI model, which was made with lower-capacity chips and for around a mere $6 million, shot up in popularity. Investors may be keen to hear what the tech sector's leaders have to say about the matter, analysts say.
3. Fed decision
The Federal Reserve is widely expected to leave interest rates unchanged following its latest two-day meeting on Wednesday.
In a note to clients, analysts at ING aruged the Fed would need to see "significant weakness" in the American economy as well as lower inflation in order to justify cutting rates down from their current range of 4.25% to 4.5%.
"For the moment, the job market and wages are gradually cooling, but not enough for resuming easing," they added. According to market pricing, the conditions for a reduction will not be met until June, they noted.
Instead, attention could center around Fed Chair Jerome Powell's press conference, with observers anticipating that he will be asked to comment on this week's stock market turmoil and the central bank's independence in the face of political pressure from U.S. President Donald Trump.
4. ASML, LVMH report
Investors were buoyed on Wednesday by strong results from Dutch semiconductor giant ASML, helping sentiment following the global tech slump earlier in the week.
ASML's stock price soared 10% after the biggest supplier of computer chip-making equipment posted much better than expected demand for its most advanced tools in the fourth quarter, even as DeepSeek’s low-cost model raises concerns over AI spending.
Elsewhere, shares in LVMH fell 4% as sales growth at the luxury goods giant failed to impress, following a string of solid returns from rivals and recent price gains.
Remy Cointreau 's(EPA:RCOP) stock also dipped after the French spirits maker said it now expects the decline in full year 2024/25 group sales to be close to 18%, at the lower end of its guidance target, citing a lack of visibility around the timing of a recovery in demand in the U.S. and worsening market conditions in China.
5. Oil muted
Oil prices steadied Wednesday after an uptick in U.S. crude stockpiles weighed on prices, adding to global growth concerns already exacerbated by the possible impact of President Trump's sweeping tariff plans.
By 03:31 ET, the US crude futures (WTI) gained 0.2% to $73.96 per barrel, while the Brent contract added 0.1% to $76.53 a barrel.
US crude oil inventories grew by 2.86 million barrels last week, according to data from the industry body American Petroleum Institute, after nine straight weeks of draws, as cold weather pushed up demand for heating and travel activity rose during the year-end holidays.
The Energy Information Administration, the statistical arm of the U.S. Department of Energy, is due to release its weekly report later in the session.
Oil benchmarks fell to multi-week lows early this week, dented by worries over increased U.S. production, the Trump administration’s plans to impose trade tariffs on major economies, and weak economic data from China.
ASML: A Bull or Bear Market Play?
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In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies.
So if ASML is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.
