Wall Street futures were mixed on Wednesday as investors weighed whether the Federal Reserve and Big Tech earnings could restore confidence in a faltering AI trade.
S&P 500 futures rose 0.26%, while Nasdaq 100 futures gained 0.20%. Dow futures plunged 109 points on Wednesday.
Chip stocks remained uneven after a brutal Asian sell-off, oil climbed on renewed Middle East tension, and earnings from Microsoft and Meta threatened to turn a quiet open into another volatile session, with positioning cautious across the broader market.
5 things to know before the market opens
1. The Fed decision is the day’s main risk
The Fed announces its decision at 2 pm ET, followed by Chair Kevin Warsh’s press conference at 2:30 pm.
Markets still favour no change, but LSEG pricing assigned a 35.1% chance to a quarter-point increase.
Investors will focus on whether higher energy costs and tariffs have made policymakers more willing to tighten later this year.
2. Big Tech must justify the AI bill
Microsoft and Meta report after Wednesday’s close, with Amazon and Apple due on Thursday. The key test is no longer headline revenue alone.
Investors want evidence that cloud growth, advertising gains, and AI products can offset the vast cost of chips, data centres, and power.
Concerns over free cash flow have already pushed the Nasdaq to a three-month low.
3. Chip stocks are struggling to stabilise
Nvidia edged up 0.3% before the bell, and Micron gained 0.5%, while Applied Materials fell 1.1%.
SK Hynix’s US-listed shares slipped after its record quarter failed to meet elevated expectations.
Seagate offered some relief, rising about 6% after forecasting results above estimates, but the sector remains vulnerable to doubts over spending and Chinese competition.
4. Oil revives the inflation problem
Brent crude rose about 3.3% to $86.80 a barrel after fresh attacks in the Middle East disrupted the recent calm.
The rebound matters beyond energy shares because it can lift inflation expectations, Treasury yields, and the discount rate applied to growth stocks.
That leaves the Fed facing a more complicated choice just as investors are rotating towards consumer staples and healthcare.
5. Ford provides an earnings bright spot
Ford gained 4.7% in premarket trading after raising its annual profit outlook for the second time this year.
The carmaker now expects adjusted earnings before interest and tax of $10 billion to $11 billion, helped by resilient truck demand and pricing.
More broadly, 85.2% of the 169 S&P 500 companies to report had beaten estimates, well above the historical rate of 68%.
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