U.S. equity futures were mostly higher early Wednesday as investors positioned cautiously ahead of a packed session featuring a key Federal Reserve policy decision and a heavy slate of corporate earnings. The Fed is widely expected to keep interest rates unchanged, while several mega-cap technology groups are set to report results after U.S. markets close. Elsewhere, gold climbed to yet another all-time high, and reports said China has approved purchases of Nvidia’s H200 artificial intelligence chips for the first time.
S&P 500 and Nasdaq futures advance
Futures tied to major U.S. indices were trading modestly in positive territory, reflecting guarded optimism ahead of the day’s events.
By 02:49 ET, Dow futures were up 37 points, or 0.1%, S&P 500 futures had gained 28 points, or 0.4%, and Nasdaq 100 futures were higher by 249 points, or 1.0%.
Wall Street closed mixed on Tuesday as investors digested a wave of quarterly earnings. Sentiment was dented by a sharp drop in UnitedHealth (NYSE:UNH), after the healthcare group warned that 2026 revenue would be lower following a federal proposal for a smaller-than-expected increase in Medicare Advantage premiums. The move weighed on the broader health insurance space, with CVS Health (NYSE:CVS) and Humana (NYSE:HUM) both suffering double-digit losses.
By the close, the Dow Jones Industrial Average had fallen 0.8%. However, relative strength in technology and automotive stocks helped support the broader S&P 500 and the Nasdaq Composite.
Beyond earnings, investors were also monitoring the risk of a partial U.S. government shutdown amid political backlash over fatal shootings involving immigration enforcement agents in Minneapolis, alongside renewed tariff threats from President Donald Trump.
Adding to the cautious tone, U.S. consumer confidence sank in January to its lowest level in 12 years, according to data from the Conference Board, highlighting growing unease among households despite an economy that remains resilient but constrained by high inflation and soft hiring.
Fed decision in focus
Against this backdrop, policymakers at the Federal Reserve are expected to leave interest rates unchanged at the conclusion of their meeting later today.
Last year, the central bank delivered a series of rate cuts to support a cooling labour market, bringing borrowing costs into a range of 3.5% to 3.75%. Since then, relatively low layoffs and inflation still well above the Fed’s 2% target have reduced the urgency for further easing.
As a result, attention is likely to turn to Chair Jerome Powell’s guidance on the future path of rates, particularly after the Fed’s December meeting revealed deep divisions among officials over how policy should evolve. Markets currently do not expect the next rate cut until June.
Investors are also closely watching developments around the leadership of the Fed. Powell, whose term as chair ends in May, is facing a criminal investigation launched earlier this month by the Trump administration. Powell has denied any wrongdoing and described the probe as a politically motivated attempt to undermine the Fed’s independence. Trump has repeatedly criticised Powell for not cutting rates more aggressively, arguing that faster easing would help stimulate growth.
Although Powell has received support from members of Trump’s Republican Party, it remains unclear whether he will remain on the Fed’s rate-setting board after his term ends. Trump has reportedly been speaking with potential successors, with prediction markets currently viewing BlackRock executive Rick Rieder as the leading candidate.
Earnings deluge
Earnings season remains a dominant theme, with investors facing a flood of results, particularly from large technology companies.
After the U.S. market closes, attention will turn to reports from Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA). These updates are expected to offer fresh insight into the sustainability of the artificial intelligence boom, which has become a major driver of equity markets and, potentially, broader economic growth.
Big technology groups have been investing heavily in AI infrastructure, fuelling strong demand for advanced semiconductors and data centres. Reinforcing expectations that this trend could extend into 2026, Europe’s largest listed company, ASML (NASDAQ:ASML), reported stronger-than-expected fourth-quarter bookings and said orders continue to increase.
Earlier in the day, investors will also parse earnings from AT&T (NYSE:T), Starbucks (NASDAQ:SBUX) and energy equipment maker GE Vernova (NYSE:GEV).
Gold sets another record
Gold prices surged to a new record above $5,200 an ounce on Wednesday, supported by strong demand for safe-haven assets and continued weakness in the U.S. dollar.
Other precious metals remained elevated, with silver and platinum trading close to recent highs. The cautious mood ahead of the Fed decision has underpinned demand for havens.
Gold has risen around 20% so far in 2026, building on last year’s strong gains. Heightened geopolitical tensions — including developments in Venezuela and a dispute involving Greenland — alongside uncertainty over U.S. policy have been key drivers of the rally.
A weaker dollar has further boosted metals prices. The greenback slid to a near four-year low this week after Trump signalled on Tuesday that he was unconcerned by the currency’s decline, prompting additional selling.
China clears purchases of Nvidia’s H200 chips – reports
China has approved the purchase of an initial batch of Nvidia’s (NASDAQ:NVDA) H200 artificial intelligence chips, according to media reports.
Authorities have reportedly authorised major domestic technology groups — including ByteDance, Alibaba and Tencent — to buy more than 400,000 H200 chips combined, as Beijing seeks to support its ambitions in artificial intelligence while balancing efforts to bolster domestic chip production.
The first round of approvals could be worth around $10 billion, with other companies still awaiting clearance. According to the Wall Street Journal, firms seeking approval were required to submit detailed explanations outlining how the chips would be used.
The move comes as Nvidia chief executive Jensen Huang has been visiting China, after previously receiving approval from the Trump administration to begin H200 sales to Chinese customers. Nvidia shares rose more than 1% in extended trading following the reports.