US stock futures dipped slightly late Wednesday as investors processed new quarterly earnings from Nvidia, a key player in the semiconductor sector, which added nuance to the ongoing narrative surrounding the artificial intelligence market. Futures linked to the Dow Jones Industrial Average edged down by 0.1%, while those for the S&P 500 and Nasdaq 100 both fell approximately 0.3%.
This muted trading in futures came after a positive day for equities, with the S&P 500 recording its second consecutive gain. The Nasdaq Composite and the Dow Jones Industrial Average also closed higher, buoyed by a wave of buying in technology and software stocks.
In after-hours trading, shares of Nvidia initially surged before retracing some of those gains. The company exceeded Wall Street’s expectations for its fourth-quarter profit and revenue, alleviating some concerns tied to this year’s so-called “AI scare trade.” In stark contrast, Salesforce saw its stock plummet around 5%, extending a troubling trend that has seen the company’s stock drop nearly 28% since the start of the year, primarily due to AI-related market dynamics.
During regular trading hours, technology stocks drove the market’s recovery, with Oracle and the so-called “Magnificent Seven”—a group of major tech companies—registering gains. This bullish sentiment emerged despite President Trump’s remarks during the State of the Union address, in which he indicated that Big Tech companies should prepare to bear an increasing share of electricity costs associated with their data centers.
Looking ahead, investors are bracing for upcoming economic data releases, including weekly jobless claims on Thursday and January’s producer price index report on Friday. The market will also be focused on earnings reports from several prominent companies, including Warner Bros. Discovery, Dell Technologies, and CoreWeave, all scheduled to release their quarterly results on Thursday.
In other notable market movements, Baidu’s stock price recently experienced a dramatic 20% drop amid growing regulatory pressures in China’s AI sector. Meanwhile, Nvidia’s extended trading session reflected optimism, bolstered by healthy guidance for the upcoming first quarter, further reinforcing its pivotal role in the tech landscape.
