Dow futures surge 120 points: 5 things to know before Wall Street opens

US stock index futures advanced on Wednesday as enthusiasm around artificial intelligence continued to support risk appetite and investors stayed cautiously optimistic about a potential US-Iran deal.

S&P 500 futures rose 0.15%, Dow Jones Industrial Average futures added 119 points, or 0.24%, and Nasdaq 100 futures gained 0.23%, pointing to a firmer start on Wall Street.

The gains followed another strong session on Wall Street, where the S&P 500 and Nasdaq closed at record highs. Traders are now weighing AI-led momentum, Middle East risks, earnings strength and Thursday’s inflation data.

5 things to know before Wall Street opens

1. AI momentum keeps futures higher

Technology remained the main support for US equity futures, with investors continuing to favour companies tied to artificial intelligence infrastructure and data demand.

The move built on Tuesday’s record close for the S&P 500 and Nasdaq, which were lifted by renewed confidence in AI-linked names.

The rally has remained heavily concentrated in growth and technology shares, but investors have so far been willing to keep chasing the theme as earnings expectations improve.

2. Micron leads premarket gains

Micron Technology rose 4.6% in premarket trading and reached a market value of more than $1 trillion (approx. €872.3 billion) for the first time.

Other storage and semiconductor-linked names also gained. Sandisk, Western Digital and Seagate Technology were each up more than 1.3% before the open.

The moves underscored the strength of the AI trade, as investors continue to price in rising demand for chips, memory and data-centre hardware.

3. US-Iran risks remain a market overhang

Sentiment was also shaped by cautious optimism over a possible US-Iran deal, though recent hostilities in the Middle East kept investors alert to the risk of renewed volatility.

Fresh tensions around the Strait of Hormuz have kept energy and inflation risks in focus.

Any escalation that threatens shipping or oil flows could push energy prices higher and complicate the outlook for global growth and monetary policy.

For now, hopes of a diplomatic breakthrough are helping offset some of those concerns.

4. Earnings strength supports the rally

Corporate earnings remain a key pillar of the market’s advance.

A strong reporting season and expectations for about 29% year-on-year first-quarter earnings growth have helped underpin sentiment.

Goldman Sachs raised its year-end 2026 target for the S&P 500 to 8,000 from 7,600, citing continued earnings strength.

The upgrade reinforced the view that profit growth, rather than only valuation expansion, is supporting the equity rally.

5. PCE data may steer Fed expectations

Investors are now looking to Thursday’s personal consumption expenditures index, the Federal Reserve’s preferred inflation gauge, for clues on the interest-rate path.

Money markets currently point to the Fed staying on hold for the rest of the year, though some traders still see the possibility of a 25-basis-point move in December.

In individual movers, Zscaler dropped 21.5% after projecting fourth-quarter revenue below expectations.

GlobalFoundries fell 6.6% after a report that Mubadala Investment Company was seeking to raise $1.9 billion (approx. €1.7 billion) by selling a 3.5% stake in the chipmaker through an unregistered block trade.