U.S. stock futures pointed to a stronger start on Wednesday, suggesting Wall Street could build on the modest advances recorded in the previous session.
Nvidia (NASDAQ:NVDA) was among the standout movers before the bell, climbing about 1.9% after unveiling a sweeping, multi-year strategic alliance with Meta Platforms (NASDAQ:META), the parent company of Facebook. The agreement spans on-premise systems, cloud infrastructure and artificial intelligence platforms, and is expected to support large-scale deployment of Nvidia CPUs along with millions of its Blackwell and Rubin GPUs.
Another member of the “Magnificent Seven,” Amazon (NASDAQ:AMZN), also looked set for early gains after it emerged that Bill Ackman’s Pershing Square boosted its stake in the e-commerce giant by 65% in the fourth quarter.
Despite the upbeat tone, overall trading volumes could remain restrained as investors await the release of minutes from the Federal Reserve’s latest policy meeting later in the day. At its late-January gathering, the central bank opted to keep interest rates unchanged, and the minutes may provide additional insight into policymakers’ thinking on the rate outlook.
Tuesday’s session reflected that cautious stance. After opening lower, the major indexes fluctuated around the flatline for much of the day before finishing slightly higher. The Dow Jones Industrial Average rose 32.26 points, or 0.1%, to 49,533.19. The Nasdaq Composite added 31.71 points, or 0.1%, to 22,578.38, while the S&P 500 edged up 7.05 points, or 0.1%, to 6,843.22.
The uneven performance came as traders held back ahead of several key economic reports due in the coming days. December’s personal income and spending data is likely to draw particular focus, as it includes the Federal Reserve’s preferred inflation gauges.
Earlier Tuesday, technology shares had weighed on the broader market, with the Nasdaq sliding to its lowest intraday level in nearly three months. Questions surrounding the return on heavy artificial intelligence investments have recently pressured the tech sector, which had previously propelled indexes to record highs.
“Investors are increasingly questioning whether the marginal dollar spent on AI will generate the expected return,” said Daniela Hathorn, Senior Market Analyst at Capital.com. “At the same time, market uncertainty is rising as new AI models frequently disrupt established players.”
“With competitive dynamics evolving rapidly, it is unclear who the long-term winners will be,” she added. “This uncertainty has led to underperformance across much of big tech, even as the broader market remains relatively resilient.”
On the economic front, the National Association of Home Builders reported that U.S. homebuilder confidence unexpectedly declined in February. The NAHB/Wells Fargo Housing Market Index slipped to 36 from 37 in January, missing expectations for a rise to 38 and marking its lowest reading since September.
Sector-wise, computer hardware stocks remained under pressure, with the NYSE Arca Computer Hardware Index falling 3.2%. Gold-related shares also retreated alongside the price of the metal, sending the NYSE Arca Gold Bugs Index down 3.2%. Housing, software and energy names likewise posted notable losses.
In contrast, airline stocks rallied sharply, lifting the NYSE Arca Airline Index by 2.5% for the session.
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