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U.S. index futures are pointing to a slightly higher open on Wednesday, suggesting a potential rebound after the markets came under pressure during Tuesday’s session.

Investor optimism around artificial intelligence continues to support equities, helping push stocks to record levels in recent weeks.

Early buying interest could be fueled by a rebound in Nvidia (NASDAQ:NVDA), which rose 0.4% in pre-market trading after dropping 2.8% on Tuesday. The AI-focused chipmaker remains a market favorite and a key driver of tech momentum.

Alibaba (NYSE:BABA) is also surging in pre-market trading, climbing 8.8% following CEO Eddie Wu’s announcement that the company plans to increase investment in AI models and infrastructure development. The Chinese tech giant also introduced new AI products and updates during Alibaba Cloud’s annual flagship conference.

Meanwhile, Micron (NASDAQ:MU) is seeing slight pre-market weakness, despite reporting better-than-expected fiscal fourth-quarter results and forecasting first-quarter revenue above estimates, driven by AI demand.

Trading may remain muted as investors await Friday’s closely watched consumer price inflation data.

On Tuesday, the major indices pulled back after trending higher in prior sessions. The tech-heavy Nasdaq fell 215.50 points, or 1.0%, to 22,573.47, while the S&P 500 dropped 36.83 points, or 0.6%, to 6,656.92. The Dow Jones Industrial Average slipped 88.76 points, or 0.2%, to 46,292.78.

The pullback partly reflected concerns about potential overvaluation following comments from Federal Reserve Chair Jerome Powell.

Speaking at an event in Rhode Island, Powell described equity prices as “fairly highly valued” after recent record highs.

He also addressed the monetary policy outlook, noting the Fed is in a “challenging situation” with near-term risks to inflation tilted upward and risks to employment tilted downward.

“Two-sided risks mean that there is no risk-free path,” Powell said. “If we ease too aggressively, we could leave the inflation job unfinished and need to reverse course later to fully restore 2 percent inflation.”

He added, “If we maintain restrictive policy too long, the labor market could soften unnecessarily. When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate.”

Nvidia’s pullback also weighed on the Nasdaq, coming after the company surged nearly 4% to a record closing high on Monday, following its strategic partnership with OpenAI to deploy at least 10 gigawatts of Nvidia systems for next-generation AI infrastructure.

Retail stocks showed notable weakness, with the Dow Jones U.S. Retail Index falling 1.2%, while software stocks also declined, reflected in a 1.2% drop in the Dow Jones U.S. Software Index.

Energy shares, however, continued to perform strongly, buoyed by a sharp rise in crude oil prices. The Philadelphia Oil Service Index jumped 3.5%, and the NYSE Arca Oil Index climbed 1.6%.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Emeis (EU:EMEIS) saw its stock climb 9.4% on Wednesday after the healthcare provider revealed plans to form a dedicated real estate company with strategic partners, a move set to cut its net debt by nearly €700 million.

The France-based elderly care specialist confirmed that Farallon Capital will act as the lead investor, alongside TwentyTwo Real Estate, to establish the healthcare real estate vehicle. Together, the partners are expected to inject €761 million by the end of 2025, representing 62% of the appraised value of the assets to be included in the new entity.

This transaction enables Emeis to surpass its original divestment goal of €1.5 billion for the period between mid-2022 and the end of 2025, bringing the total value of completed or secured deals to approximately €1.9 billion.

The real estate portfolio consists of 68 properties with a total valuation of €1.22 billion, yielding an average return of around 6%. Emeis will continue to operate the properties, which are primarily located in France (68%), with the remainder in Germany (19%) and Spain (13%).

The partnership is structured for five years, with an option to extend for an additional two, allowing Emeis to maintain operational control of the assets while reducing its leverage. The company will also retain 90% of any value creation above the partners’ expected 12% internal rate of return.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

TotalEnergies (EU:TTE) of France and German utility RWE (TG:RWE) have been awarded the contract to develop and manage a major offshore wind farm off the coast of Normandy, the companies confirmed Wednesday.

The Centre Manche 2 initiative is expected to involve an investment of around €4.5 billion ($5.32 billion) for planning, construction, and operation. TotalEnergies emphasized that this represents its largest single investment in France in the past three decades.

The 1.5-gigawatt facility is projected to produce sufficient clean energy to supply more than 1 million households, highlighting the scale of the project.

This offshore wind venture aligns with France’s broader strategy to expand renewable energy output and reduce reliance on fossil fuels.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Pinewood Technologies Group PLC (LSE:PINE) saw its shares slide 5.9% on Wednesday after the automotive software provider lowered its full-year profit forecast, even amid robust revenue growth in the first half of 2025.

The cloud-based solutions firm, which specializes in retail software for the automotive sector, posted revenue of £19.6 million for the six months ended June 30, up 21.7% from £16.1 million a year earlier. Recurring revenue reached £16.8 million, making up 85.7% of the total.

Despite these gains, Pinewood now anticipates FY25 underlying EBITDA of £15.5-16.0 million, falling short of prior market expectations. The company attributed the revision to a £1.3 million short-term accounting effect linked to its buyout of Lithia’s stake in Pinewood North America LLC, along with delays in deploying its system at Marshall Motor Group.

“This has been another half of great progress for Pinewood.AI, delivering on our strategic objectives and positioning the business for continued accelerated growth,” said Bill Berman, Chief Executive Officer.

“Taking full ownership of Pinewood North America LLC and the contract signed with Lithia marked major achievements in our growth strategy for this key market.”

During the period, the company executed several strategic initiatives, including acquiring Seez to enhance its AI capabilities and assuming full control of Pinewood North America LLC to support expansion in the North American market.

Looking forward, Pinewood unveiled a medium-term target of £58-62 million underlying EBITDA for FY28, supported by strong visibility from existing contracts and a substantial pipeline of growth opportunities.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

EnQuest PLC (LSE:ENQ) reported a 6% drop in revenue to $549.1 million for the first half of 2025, down from $586.0 million in the same period last year, as the UK-focused energy producer contended with a third-party infrastructure outage and ongoing effects of the UK’s Energy Profits Levy.

The company posted a statutory net loss of $173.5 million for H1, compared to a net profit of $30.3 million a year earlier. Excluding exceptional items, including a $123.9 million non-cash adjustment tied to the two-year extension of the UK “windfall tax,” EnQuest recorded an adjusted net loss of $43.1 million, versus an adjusted profit of $84.2 million in H1 2024.

Following the earnings release, EnQuest shares fell 0.8%.

Net production averaged 43,392 barrels of oil equivalent per day (Boepd), factoring in proforma output from recent acquisitions in Vietnam. Excluding Vietnam, production totaled 38,257 Boepd, down from 42,771 Boepd in the first half of 2024. The company maintained its full-year production forecast of 40,000 to 45,000 Boepd.

“Consistent with our top-quartile performance over several years, EnQuest has again delivered exemplary production efficiency – which averaged 89% across the portfolio in the first half of 2025, with production in line with guidance,” said Amjad Bseisu, EnQuest’s Chief Executive.

Pre-tax profit fell to $65.6 million from $111.3 million a year earlier, affected by a 14% decline in Brent crude prices, partially offset by hedging strategies and a 37% increase in gas prices.

EnQuest generated $32.7 million in free cash flow, down from $55.5 million in H1 2024, and paid its inaugural dividend of $15 million during the period. Net debt stood at $376.6 million as of June 30, slightly below the $385.8 million recorded at the end of 2024.

The company emphasized its growth ambitions in Southeast Asia, completing acquisitions in Vietnam and securing new production-sharing contracts in Indonesia and Brunei, targeting regional production expansion from 8,149 Boepd in 2024 to over 35,000 Boepd by the end of the decade.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures were largely flat Wednesday, as investors weighed Federal Reserve Chair Jerome Powell’s comments and strong quarterly guidance from semiconductor maker Micron. Powell offered a cautious perspective on the outlook for interest rates, highlighting the dual pressures of soft employment data and persistent inflation, while Micron’s forecast for the current quarter exceeded expectations, fueled by robust demand from AI developers.

Muted futures ahead of Powell commentary

By 03:38 ET, Dow and S&P 500 futures were mostly unchanged, while Nasdaq 100 futures edged up 21 points, or 0.1%. Wall Street’s major indexes had fallen in the previous session, breaking a three-day streak of record closes.

Shares of Nvidia, a favorite among AI investors, slipped, particularly weighing on the tech-heavy Nasdaq Composite, retreating from gains earlier in the week driven by its announcement of a $100 billion investment in OpenAI. Meanwhile, Boeing shares gained after the planemaker revealed an $8 billion order from Uzbekistan Airways.

Powell maintains a cautious tone

Tuesday’s main focus was Powell, speaking just days after the Fed cut rates by 25 basis points and indicated that additional cuts might follow. The Fed chair remained noncommittal about the trajectory of interest rates, noting that policymakers must navigate the simultaneous challenges of slowing job growth and sticky inflation.

In theory, reducing rates can encourage investment and hiring, though it carries the risk of pushing prices higher. Powell emphasized that there is no “risk-free” path for the central bank, even as markets price in potential rate reductions at the Fed’s October and December meetings. Signs are emerging that Fed officials will likely debate vigorously at those gatherings. Other Fed members also offered statements on Tuesday, defending both sides of the policy argument.

“Fed Chair Jerome Powell broadly reiterated his cautious view yesterday, signalling there is some balance between downside employment risks and upside inflation risks. The result is still a more hawkish tone by the chair relative to the FOMC consensus, as expressed by the median Dot Plot,” analysts at ING noted.

Micron’s AI-driven guidance impresses

Micron (NASDAQ:MU) shares rose in premarket trading after the company posted another quarter of growth driven by surging demand for memory chips from AI developers. CEO Sanjay Mehrotra said on the post-earnings call that the stronger-than-expected performance was powered by demand for its DRAM and NAND products.

Looking ahead, Micron expects the midpoint of its adjusted profit per share for the current quarter to reach $3.75 on projected revenue of $12.5 billion, plus or minus $300 million. Analysts had predicted $3.10 per share and $11.91 billion in revenue. Mehrotra noted that supply remains “tight,” while demand for DRAM processors should remain “healthy” next year.

To support production, Micron plans to increase its investment in the U.S. semiconductor sector to $200 billion, with $4.5 billion expected to be spent in the current quarter. For the quarter ending in August, tripling sales in its cloud memory segment to $4.5 billion helped overall revenue surge 46% to $11.32 billion, also surpassing expectations.

Alibaba ramps up AI investment

Shares of Alibaba Group (NYSE:BABA) in Hong Kong climbed more than 8% after unveiling its most powerful AI model yet and announcing plans to expand investment in the infrastructure supporting the technology. At its annual conference, Alibaba introduced Qwen3-Max, a language model with over 1 trillion parameters, excelling in code generation and autonomous agent tasks.

CEO Eddie Wu emphasized that Alibaba will continue increasing its previously announced AI infrastructure investment of 380 billion yuan ($53.4 billion) over the next three years but did not specify a new target. Other products introduced included Qwen3-Omni, a multimodal system aimed at immersive experiences like virtual reality and smart vehicle cockpits, demonstrating Alibaba’s goal of expanding AI beyond chatbots.

Gold holds near record highs

Gold prices stabilized, remaining near recent all-time peaks as Powell’s remarks fueled caution regarding growth, inflation, and rates. Expectations of further Fed rate cuts before the end of 2025 have lent support to gold, as lower rates enhance the appeal of non-yielding assets. Investors are also watching upcoming economic data, which may provide insight into inflation and overall economic activity. Heightened geopolitical uncertainty continues to bolster gold’s safe-haven status.

Spot gold rose 0.3% to $3,775.56 an ounce, while gold futures slipped 0.2% to $3,807.92/oz by 03:29 ET.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The U.S. dollar gained ground Wednesday following cautious remarks from Federal Reserve Chair Jerome Powell regarding further monetary easing, while the euro struggled to benefit from positive news on Ukraine.

At 03:50 ET (07:50 GMT), the Dollar Index, which tracks the greenback against six major currencies, rose 0.2% to 97.080, recovering slightly after earlier declines.

Powell signals caution

In a speech to Rhode Island’s Greater Providence Chamber of Commerce on Tuesday, Powell emphasized the Federal Reserve’s “challenging situation,” noting the dual risks of faster-than-expected inflation and weak job growth raising concerns about labor market health.

He offered little clarity on the timing of future interest rate cuts, warning that moving too quickly could reignite inflation, while easing too slowly might unnecessarily push unemployment higher. The Fed reduced rates earlier this month for the first time in 2025, and markets currently anticipate quarter-point cuts at the remaining two Fed meetings this year.

“Fed Chair Jerome Powell broadly reiterated his cautious view yesterday, signalling there is some balance between downside employment risks and upside inflation risks. The result is still a more hawkish tone by the chair relative to the FOMC consensus, as expressed by the median Dot Plot,” analysts at ING noted.

Later in the session, housing data may provide additional insight, though it is unlikely to shift sentiment significantly. “We retain a moderate bearish bias on the dollar this week, although a quiet day for data and Fedspeak today (only Mary Daly is due to speak) means we could see FX volatility ease further and the dollar hover close to the current level in most G10 crosses,” ING added.

Euro reacts cautiously to Trump comments

In Europe, the euro slipped 0.2% against the dollar to 1.1794, failing to gain despite upbeat remarks from U.S. President Donald Trump on Ukraine. Trump said via his Truth Social platform that he believes Ukraine can reclaim all territory lost to Russia since the invasion, after meeting Ukrainian President Volodymyr Zelenskiy on the sidelines of the U.N. General Assembly.

He had previously indicated that both Kyiv and Moscow might need to cede land to end the conflict. “With time, patience, and the financial support of Europe and, in particular, NATO, the original Borders from where this War started, is very much an option,” Trump wrote in his post.

“While that is a significant change of tone, markets have been treating Trump’s comments on the matter with caution due to a lack of progress in peace negotiations so far,” said ING. “If anything, there are downside risks for the euro and even more for higher-beta European currencies as Trump told EU allies to shoot down Russian planes violating NATO airspace.”

GBP/USD moved 0.3% lower to 1.3487, returning toward last week’s two-week low.

Other currency movements

Elsewhere, USD/JPY increased 0.3% to 148.10. The Bank of Japan kept policy unchanged last week, but hawkish signals have sparked speculation about earlier rate hikes. USD/CNY gained 0.1% to 7.1193, while AUD/USD rose 0.4% to 0.6620 following Australia’s CPI report for August, which showed a 3.0% year-over-year increase, slightly above forecasts of 2.9%.

The Reserve Bank of Australia had cut rates in its previous meeting and indicated the potential for further reductions if economic data supported it. However, Wednesday’s CPI print, reaching the top of the RBA’s target range, reignited concerns about the bank’s next moves.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Oil prices remained mostly steady on Wednesday after industry data indicated a drop in U.S. crude inventories last week, contributing to market expectations of tighter supply conditions.

Brent futures inched up 3 cents to $67.66 per barrel by 06:30 GMT, while U.S. West Texas Intermediate (WTI) crude gained 5 cents to reach $63.46. Both benchmarks had climbed over $1 a barrel on Tuesday following a stalled deal to resume oil exports from Iraq’s Kurdistan, which halted pipeline shipments to Turkey despite ongoing hopes for an agreement, as two major producers requested debt repayment guarantees.

The proposed accord between Iraq’s federal government, the Kurdish regional authorities, and oil companies would allow roughly 230,000 barrels per day to flow again. Pipeline operations have been halted since March 2023.

“Prices are expected to remain supported but range-bound in the near term,” said Emril Jamil, a senior analyst for oil at the LSEG.

Jamil noted that while continuing supply disruptions from Russia are bolstering prices, further increases are limited by uncertainties surrounding U.S. Federal Reserve interest rate decisions.

Data from the American Petroleum Institute (API) indicated that U.S. crude and gasoline inventories fell last week, while distillate stockpiles rose, according to market sources referencing the API figures. Crude inventories dropped by 3.82 million barrels in the week ending September 19, gasoline supplies fell by 1.05 million barrels, and distillate stocks increased by 518,000 barrels.

Official energy reports from the U.S. government are expected later Wednesday, likely showing gains in both crude and gasoline inventories, with a probable decline in distillates.

Signs of tightening supply are also evident elsewhere. Reuters reported that Chevron, a major U.S. oil company, will only be able to export roughly half of the 240,000 barrels per day of crude it produces in partnership with Venezuela.

Although the company received authorization to operate in the sanctioned country in July, new regulations mean a smaller portion of Venezuela’s heavy, high-sulfur crude will reach the U.S. market.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold prices remained steady in Asian trading on Wednesday, hovering close to recent record highs following comments from U.S. Federal Reserve Chair Jerome Powell, which raised concerns about economic growth, inflation, and interest rate policy.

Investor interest in safe-haven assets such as gold and other precious metals increased, while ongoing weakness in the dollar continued to support demand for metals. Caution was further heightened by upcoming key economic releases and disappointing U.S. purchasing managers index (PMI) data.

Spot gold inched up 0.3% to $3,776.20 an ounce, while gold futures slipped 0.2% to $3,808.50 an ounce as of 01:39 ET (05:39 GMT).

Powell Signals Economic Risks and Rate Uncertainty

Spot gold reached a record $3,791.1 per ounce on Tuesday and held near that level after a strong rally over the past week.

Fed Chair Powell on Tuesday highlighted growing uncertainty over the U.S. economic outlook, noting that there is no “risk-free path” for cutting interest rates while attempting to control inflation and support jobs.

He also acknowledged that the labor market had weakened sharply in recent months, while inflation remained persistent, complicating the central bank’s efforts to ease monetary policy.

Powell’s remarks came just a week after the Fed reduced rates by 25 basis points, as anticipated, and indicated further potential easing. Gold prices had surged following the rate cut, as lower yields make non-interest-bearing assets like metals more appealing.

Markets are largely betting on at least two more 25-basis-point cuts this year, according to CME FedWatch data. Additional signs of U.S. economic softness could prompt further monetary easing, with the dollar hovering near three-year lows.

September PMI readings showed that both manufacturing and services activity expanded less than expected, as businesses grappled with higher trade tariffs, sticky inflation, and slow consumer spending.

Other Metals See Gains

Other precious metals also advanced Wednesday, with spot platinum up 0.6% at $1,485.41 per ounce and spot silver rising 0.5% to $44.2495 per ounce.

Among industrial metals, London Metal Exchange copper futures edged up 0.1% to $9,999.95 per ton, while COMEX copper futures rose slightly to $4.6430 per pound.

Upcoming U.S. Data in Focus

Investors are awaiting more U.S. economic data, including the final reading for second-quarter GDP growth on Thursday, expected to confirm stronger-than-anticipated growth.

Attention will also be on the PCE price index—Fed Chair Powell’s preferred inflation gauge—due Friday. Analysts expect inflation to remain sticky in August, which could intensify uncertainty over the Fed’s interest rate plans. Several Fed officials are also scheduled to speak in the coming days, adding further potential market-moving commentary.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Luxury equities are showing early signs of recovery heading into the third quarter, helped by easier year-ago comparisons in China and steadier performance during July and August, according to RBC Capital Markets.

Analysts expect Hermes (EU:RMS) to achieve 10% organic revenue growth, while Burberry’s (LSE:BRBY) retail like-for-like (LFL) sales are anticipated to turn slightly positive. The focus now is whether this momentum can extend into Q4, when comparisons become more difficult.

For Hermes, RBC forecasts revenues of €3.9 billion, representing 10% organic growth, with Leather Goods up 14%, Ready-to-Wear rising 6%, and Other Hermes increasing 13%. Growth is projected across regions, with Europe and the Americas each gaining 11% and Asia rising 8%.

Analysts led by Piral Dadhania noted that Hermes remains “underindexed to tourism,” which could help cushion the impact of weaker travel-related spending.

Burberry’s second quarter is expected to generate retail revenues of £425 million, reflecting a 1% LFL increase, while wholesale sales are projected to decline 14%. RBC anticipates a first-half gross margin of 66.5% and adjusted EBIT of £10 million. The brokerage expects slight improvement in Greater China due to onshoring of spending, stable trends in the Americas, and softer performance in Europe, the Middle East, and Japan.

The analysts highlighted Hermes’ defensiveness and Burberry’s “well underpinned turnaround credentials” as appealing attributes within the sector.

Other luxury groups show mixed trajectories. RBC expects LVMH (EU:MC) to report group revenues of €17.95 billion, down 1% organically, with its Fashion & Leather division falling 5% amid continued weakness in Japan and softer demand in the U.S. and Europe.

Kering (EU:KER) is projected to experience steeper declines, with group revenues down 10% organically, driven by Gucci’s 17% drop. Moncler (BIT:MONC) is also expected to fall slightly, with revenues down 1% at constant FX, reflecting weaker retail LFL sales. By contrast, Richemont’s (BIT:1CFR) Jewellery Maison is forecast to grow 9% on a constant FX basis.

“We continue to view defensiveness at Hermes, relative underperformance at LVMH and well underpinned turnaround credentials at Burberry as attractive in luxury,” the analysts wrote.

While the sector remains in a cyclical downturn, share price movements are increasingly tied to expected revenue growth inflections in 2026 rather than short-term earnings revisions. RBC’s forecasts remain slightly below consensus for Hermes and Burberry, with EBIT estimates reduced by 3% and 7%, respectively. Nevertheless, both stocks are rated Outperform, with price targets of €2,300 for Hermes and 1,400 pence for Burberry.

The central question is whether the third-quarter gains are temporary or indicate a more sustained recovery. RBC notes that seasonal and gift-related demand, along with U.S. tariff-driven pricing, could provide partial support through the end of the year.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.