U.S. stock futures ticked higher early Wednesday as investors awaited the release of the Federal Reserve’s January meeting minutes and reviewed the latest corporate updates. Shares of cybersecurity firm Palo Alto Networks (NASDAQ:PANW) declined after issuing softer-than-expected earnings guidance. Meanwhile, Warren Buffett’s final quarter at the helm of Berkshire Hathaway (NYSE:BRK.B) featured significant portfolio adjustments, including reductions in major technology and banking holdings.
Futures edge up
By 02:43 ET, Dow Jones futures were up 55 points, or 0.1%. S&P 500 futures gained 12 points, or 0.2%, while Nasdaq 100 futures slipped 35 points, or 0.1%.
Wall Street’s main indices closed higher in the prior session, helped by a modest recovery in technology stocks that had recently been under pressure. Strength in Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) offset weakness in Microsoft (NASDAQ:MSFT) and Oracle (NYSE:ORCL), lifting the S&P 500 information technology sector by 0.5%.
However, uncertainty continues to surround the tech sector following the rollout of new artificial intelligence tools. Some investors are concerned that AI advancements could disrupt industries spanning software, financial services, real estate, and logistics.
There are also lingering questions about when heavy spending on AI-focused data centers will begin to generate meaningful returns, especially as large-cap tech companies have outlined substantial capital commitments to infrastructure supporting AI systems.
“Tech investors remain traumatized by the volatility of the last several weeks and the shifting AI conversation, although there is growing anticipation for Nvidia’s earnings report next week (which most people expect will be strong) while software is still firmly in the penalty box despite the extremely oversold price action,” analysts at Vital Knowledge said.
Focus on Fed minutes
The minutes from the Federal Reserve’s January policy meeting, scheduled for release later Wednesday, are expected to provide additional insight into the central bank’s rate outlook.
At that meeting, two officials—Stephen Miran and Christopher Waller—voted against the decision to keep rates unchanged, effectively pausing the easing cycle that began in mid-2024.
Policymakers pointed to a resilient labor market and inflation that remains above target but is stabilizing as reasons to hold rates within the 3.5% to 3.75% range.
Markets widely expect the Fed to maintain this range at least through June, adopting a cautious stance as it evaluates incoming data on jobs and inflation.
Fed Chair Jerome Powell is nearing the end of his term, and President Donald Trump has nominated former Fed Governor Kevin Warsh as his successor. Investors are assessing how a leadership change might influence future rate decisions.
Oil rebounds on US–Iran developments
Oil prices posted modest gains after sliding nearly 2% in the prior session, as signs of progress in U.S.–Iran nuclear talks helped ease concerns over potential supply disruptions.
As of 02:58 ET, Brent crude futures for April delivery rose 0.3% to $67.61 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.2% to $62.40 per barrel.
Brent had fallen almost 2% on Tuesday, while WTI dropped 1%.
Reports suggested that U.S. and Iranian negotiators agreed on key “guiding principles” during talks in Switzerland, raising hopes for a deal that could eventually bring additional Iranian oil to global markets.
Still, Iran’s foreign minister cautioned that the understanding does not signal that a comprehensive agreement is close.
Palo Alto Networks declines on guidance
Palo Alto Networks (NASDAQ:PANW) shares fell in after-hours trading despite posting better-than-expected quarterly results, as investors reacted to weaker profit guidance.
The Santa Clara-based cybersecurity company reported fiscal second-quarter earnings of $1.03 per share on revenue of $2.59 billion, beating analyst forecasts of $0.94 per share on $2.58 billion in revenue.
However, the company revised its fiscal 2026 earnings per share outlook to a range of $3.65 to $3.70, down from a previous forecast of $3.80 to $3.90. The consensus estimate had been $3.87.
Berkshire trims Apple and Bank of America stakes
Berkshire Hathaway (NYSE:BRK.B) reduced its holdings in Apple and Bank of America (NYSE:BAC) and initiated a new investment in New York Times (NYSE:NYT) during Warren Buffett’s final quarter as chief executive.
A regulatory filing showed that Berkshire sold about 10.3 million Apple shares in the quarter ended December 31, marking the third consecutive quarter of reductions in its stake. The conglomerate also cut its position in Bank of America by 50.8 million shares.
At the same time, Berkshire purchased roughly 5.1 million shares of New York Times, backing a company that has expanded beyond traditional news publishing into digital subscription offerings such as games and recipes.
Buffett, 95, stepped down as CEO at the end of 2025, handing over leadership to his chosen successor, Greg Abel, who is set to deliver his first annual shareholder letter later this month.
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