U.S. stock futures displayed a lackluster performance Wednesday night, hovering just below the neutral mark as investors navigated two significant developments. The market showed easing worries regarding inflated valuations in the artificial intelligence (AI) sector, while optimism was sparked by a Supreme Court hearing that suggested potential limitations on President Donald Trump’s tariff policies.
Futures contracts for the S&P 500 and the Dow Jones Industrial Average remained near the flatline, indicating a tepid market sentiment. Conversely, Nasdaq 100 futures experienced a slight dip of 0.1%. Investors were particularly attentive to the skepticism exhibited by several justices during the Supreme Court discussions concerning the legality of the President’s extensive trade tariffs. A ruling against these tariffs could have profound implications for international trade dynamics and domestic economic spending.
In related news, shares associated with AI rebounded significantly after a rocky start to the week. Advanced Micro Devices (AMD) saw a robust increase of over 2% following a strong performance that surpassed Wall Street expectations for its third-quarter earnings. This surge helped buoy other semiconductor firms, with Broadcom (AVGO) and Micron Technology (MU) rising by 2% and 9%, respectively.
The resurgence of AI stocks contributed to a broader market recovery after earlier-week declines had set all three major indexes on a trajectory for weekly losses. Nevertheless, concerns regarding a potential AI bubble linger, as investment in the sector remains at unprecedented levels.
As the earnings season progresses, attention will shift toward upcoming reports from notable companies including Warner Bros. Discovery (WBD), Airbnb (ABNB), and the pharmaceutical firm Moderna (MRNA), all set to be released on Thursday. Additionally, investors will be closely monitoring the outcome of Tesla’s shareholder meeting at 4 PM ET, where discussions are expected to revolve around Elon Musk’s proposed trillion-dollar compensation package.
Overall, market participants remain vigilant as they assess the implications of these developments, anticipating their impact on investor sentiment and economic trends in the coming days.
