US stock futures steadied on Wednesday after a second bruising day for techs, with Wall Street looking to Micron’s (MU) earnings later for a health check on AI demand.
Nasdaq 100 (NQ=F) futures rose 0.5%, while those on the S&P 500 (ES=F) put on 0.1%, coming off steep closing losses for the indexes as AI-focused names took a hit. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, fell 0.1%.
Worries about lofty valuations and massive spending, alongside fears of coming interest-rate hikes, have prompted a wave of profit-taking in high-flying AI-linked stocks.
Micron’s earnings are due after the bell on Wednesday, and its results will be closely watched as Wall Street assesses just how much faith to put in AI. Its shares have been on a tear this year, rising more than 250%, but they sank 13% on Tuesday amid the tech rout.
Late Tuesday, Cerebras posted its first earnings report since going public in May. Shares of the AI chipmaker dropped over 10% in premarket after it forecast profit margins would lag those from rivals such as Nvidia (NVDA).
Meanwhile, uncertainty persists over US-Iran talks and where key issues might ultimately land. While President Trump had pledged the Strait of Hormuz would remain free of tolls, Iran and Oman have started discussing a system to charge fees for ships to cross the key supply-flow waterway.
FedEx (FDX) cited rising transportation costs and the impacts of shifting trade policy for shrinking operating margins in its after-hours earnings report. The delivery company, seen as a bellwether for the broader economy, saw its shares slide before the bell.
