Tech Giants Lead US Futures

US equity futures trimmed some of their rebound as evidence of increasing inflation weighed against the ongoing AI rally. Contracts for the S&P 500 and Nasdaq were near the flatline to remain near record highs, while the Dow was 250 points down. Producer price inflation surged more than expected in April, both for energy-exposed goods and non-energy services, to show that the impact of the war in the Middle East on prices has spread past direct fuel costs onto the broader economy. This coincided with a fresh increase in refined fuel prices this week amid the continued blockade of tankers in the Persian Gulf. Still, strong earnings prospectives from AI software and hardware producers continued to carry stock indices since the Q1 earnings season. Hyperscalers were higher premarket after SoftBank unveiled soaring gains from its private OpenAI stake. Also, Nvidia gained 2.5% as CEO Huang surprisingly joined other tech leaders and the US delegation in their summit with China.

US equity futures were mixed on Tuesday as the heavyweight tech sector continued to outperform more traditional sectors of the economy. Contracts for the Nasdaq and S&P 500 inched higher to new records, while those for the Dow were 100 points lower. Crude oil and fuel prices were steady at elevated levels to reflect the somewhat accepted outlook that supplies from the Middle East will not be restored soon, maintaining the inflationary backdrop. Still, strong earnings prospectives from AI software and hardware producers continued to carry stock indices since the Q1 earnings season. Hyperscalers were higher premarket after SoftBank unveiled soaring gains from its private OpenAI stake. Also, Nvidia gained 2.5% as CEO Huang surprisingly joined other tech leaders and the US delegation in their summit with China, potentially paving the way for exports of more advanced chips to China.

US stock futures stabilized on Wednesday as investors awaited the latest producer inflation data for additional clues on the economic impact of the ongoing Middle East conflict. During Tuesday’s regular session, the S&P 500 and Nasdaq Composite declined 0.16% and 0.71%, respectively, while the Dow Jones added 0.11%. Sentiment was pressured by weakness in technology shares and rising oil prices as President Donald Trump cast doubt on the sustainability of the US-Iran ceasefire after rejecting Tehran’s counterproposal to end the war. Economic data released Tuesday also showed US consumer inflation accelerated to 3.8% in April, above expectations of 3.7% and the highest level since May 2023. Investors are now turning their attention to another round of corporate earnings due Wednesday, including results from Nebius, Allianz, and Alibaba, among others.