S&P, Dow Jones futures rise as tech leads ahead of Fed minutes

US stock index futures moved higher on Wednesday, supported by gains in major technology shares as investors awaited the release of minutes from the Federal Reserve’s latest policy meeting for signals on the interest-rate outlook.

Futures tied to the Dow Jones Industrial Average rose 216 points, or 0.44%.

S&P 500 futures climbed 0.49%, while Nasdaq 100 futures advanced 0.57%.

Tech shares drive early gains

Large-cap technology stocks led premarket advances, helping steady sentiment after a volatile period fueled by uncertainty surrounding artificial intelligence spending and its impact on corporate earnings.

Nvidia shares rose 1.8% in premarket after the company announced a multi-year agreement to supply Meta Platforms with millions of its current and next-generation AI chips.

Amazon gained more than 1.57% after regulatory filings showed Bill Ackman’s Pershing Square increased its stake in the company by 65% during the fourth quarter, making it the fund’s third-largest holding.

The move followed Amazon snapping a nine-day losing streak.

Micron Technology also rose more than 1.1% after David Tepper’s Appaloosa Management expanded its position in the chipmaker.

Other megacap companies advanced as well, with Meta Platforms and Microsoft each adding about 0.7% in premarket trading.

Despite Wednesday’s rebound, markets have been unsettled in recent weeks.

Concerns that rapidly improving artificial intelligence tools could disrupt industries from software to trucking have weighed on equities, while investors have sought clearer evidence that heavy AI spending will translate into revenue growth.

Wall Street ended the previous session with only modest gains after sharp intraday swings.

The S&P 500 closed 0.1% higher after falling as much as 0.9% earlier in the day, while the Dow and Nasdaq also reversed early losses.

The software sector remained under pressure amid fears of AI disruption.

Focus shifts to Fed minutes and inflation data

Investors are closely watching the minutes from the Federal Reserve’s January meeting, when policymakers held interest rates steady.

The document is expected to provide insight into how long the central bank may keep borrowing costs unchanged.

Markets are also preparing for the personal consumption expenditures price index due Friday.

The PCE, the Fed’s preferred inflation gauge, is expected to provide further clarity on inflation and the path of monetary policy.

According to CME’s FedWatch Tool, traders see roughly a 63% chance of a 25-basis-point rate cut at the Fed’s June meeting.

Corporate developments in focus

Individual stock moves also shaped trading.

Palo Alto Networks fell 6.7% after trimming its annual profit forecast, citing rising costs tied to artificial intelligence investments.

Cadence Design Systems climbed 5.6% after beating fourth-quarter revenue estimates.

Meanwhile, Western Digital announced plans to raise $3.17 billion by selling part of its stake in its former unit Sandisk through a secondary share sale, sending Sandisk shares down 2.5%.

As earnings season continues, investors remain cautious while awaiting clearer signals on inflation, interest rates, and whether AI investment can justify elevated valuations in technology stocks.