U.S. stock futures pointed to a positive start on Wednesday, signaling a rebound on Wall Street after a mixed performance in the previous session.
Technology shares looked set to drive the early momentum, with Nasdaq 100 futures up 0.6%, suggesting renewed buying interest in the sector.
Advanced Micro Devices (NASDAQ:AMD) jumped 6.5% in premarket trading after CEO Lisa Su said the company expects average annual revenue growth above 35% over the next three to five years. Su also projected that AMD could reach “double-digit” market share in the data center AI chip space, an area currently dominated by Nvidia (NASDAQ:NVDA).
Nvidia shares were also trading higher before the opening bell, rebounding after Tuesday’s steep decline that had weighed heavily on the tech-heavy Nasdaq.
The broader market’s optimism was further supported by developments in Washington, as the House of Representatives prepared to vote on legislation to end the longest government shutdown in U.S. history. The Senate approved the bill on Monday, extending federal funding through January 30, and the House is expected to pass it later today.
On Tuesday, the major indexes delivered a divergent performance following Monday’s strong rally. The Dow Jones Industrial Average extended its gains, rising 559.33 points, or 1.2%, to close at 47,927.96, while the S&P 500 added 14.18 points, or 0.2%, to end at 6,846.61. In contrast, the Nasdaq Composite slipped 58.87 points, or 0.3%, to finish at 23,468.30.
The uneven session reflected growing uncertainty among investors about market valuations and the sustainability of recent tech gains, amid ongoing speculation of a potential technology bubble.
Stocks had rallied earlier in the week on renewed optimism surrounding the end of the record-breaking U.S. government shutdown, recovering ground lost during last week’s sell-off. Still, valuation concerns and questions about the broader economic impact of the shutdown continued to weigh on sentiment.
Among individual movers, Nike (NYSE:NKE), Merck (NYSE:MRK), and Amgen (NASDAQ:AMGN) helped lift the Dow, while the Nasdaq was dragged down by a 3% decline in Nvidia’s shares after SoftBank sold its entire $5 billion stake in the company.
With the shutdown resolution likely nearing and tech stocks rebounding, investors appear cautiously optimistic heading into Wednesday’s trading session.