U.S. stock futures were higher early Wednesday, suggesting a stronger open on Wall Street as investors looked past recent volatility and focused on renewed optimism in the technology sector and signs that the U.S. government shutdown could soon end.
Nasdaq 100 futures gained 0.6%, pointing to tech-led strength at the open.
Advanced Micro Devices (NASDAQ:AMD) jumped 6.5% in premarket trading after CEO Lisa Su forecast average annual revenue growth of more than 35% over the next three to five years. Su also said AMD aims to capture a “double-digit” share of the data center AI chip market, currently dominated by Nvidia (NASDAQ:NVDA).
Nvidia’s stock also rebounded in premarket trading after a sharp drop on Tuesday dragged down the broader tech index.
Investors were further encouraged by political developments in Washington, where the House of Representatives is expected to vote later today on legislation to end the longest government shutdown in U.S. history. The Senate passed the bill on Monday, extending funding for most federal agencies until January 30, and President Trump is expected to sign it once approved.
Tuesday’s session saw a split performance across the major U.S. indexes. The Dow Jones Industrial Average climbed 559 points, or 1.2%, to 47,927.96, while the S&P 500 added 14 points, or 0.2%, to 6,846.61. Meanwhile, the Nasdaq Composite fell 59 points, or 0.3%, to 23,468.30, weighed down by weakness in high-growth tech names.
The mixed results reflected investor caution following a volatile stretch for equities, with some traders warning of potential overvaluation in the technology sector after weeks of sharp gains.
Earlier this week, stocks had rallied on optimism surrounding a resolution to the record-long shutdown, as markets regained momentum following last week’s sell-off. Still, valuation concerns and uncertainty about the economic fallout from the shutdown remain in focus.
Among individual movers, Nike (NYSE:NKE), Merck (NYSE:MRK), and Amgen (NASDAQ:AMGN) helped propel the Dow higher, while Nvidia slipped 3% on Tuesday after SoftBank sold its entire $5 billion stake in the chipmaker.
With tech shares bouncing back and a potential end to the shutdown in sight, traders are cautiously positioning for another day of modest gains on Wall Street.
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