U.S. equity futures were trading higher early Wednesday, signaling a stronger start on Wall Street as investors look to build on the prior session’s modest advances.
Nvidia (NASDAQ:NVDA) was a key driver in premarket action, rising 1.9% after unveiling a broad, multi-year strategic alliance with Facebook parent Meta Platforms (NASDAQ:META). The agreement spans on-premises systems, cloud platforms and AI infrastructure, and is expected to support large-scale deployment of Nvidia CPUs along with millions of Blackwell and Rubin GPUs.
Another “Magnificent Seven” heavyweight, Amazon (NASDAQ:AMZN), also appeared poised for early gains after reports that Bill Ackman’s Pershing Square boosted its stake in the e-commerce group by 65% in the fourth quarter.
Despite the upbeat tone, overall trading volumes may remain restrained as investors await the release of minutes from the Federal Reserve’s latest policy meeting. The Fed held rates steady at its late-January gathering, and the minutes could offer fresh clues about the trajectory of monetary policy.
Tuesday’s session reflected that cautious mood. After an early dip, the major averages fluctuated around the flatline for much of the day before closing slightly higher. The Dow added 32.26 points, or 0.1%, to 49,533.19. The Nasdaq rose 31.71 points, or 0.1%, to 22,578.38, while the S&P 500 gained 7.05 points, or 0.1%, to finish at 6,843.22.
The lackluster tone came as traders hesitated ahead of several key economic releases due later this week. December’s personal income and spending report is expected to draw particular scrutiny because it includes the Fed’s preferred inflation gauges.
Earlier Tuesday, technology shares had weighed heavily on the broader market, with the Nasdaq briefly sliding to its lowest intraday level in nearly three months. Ongoing questions about the long-term payoff from aggressive artificial intelligence investment have pressured the tech sector, which previously helped power indexes to record highs.
“Investors are increasingly questioning whether the marginal dollar spent on AI will generate the expected return,” said Daniela Hathorn, Senior Market Analyst at Capital.com. “At the same time, market uncertainty is rising as new AI models frequently disrupt established players.”
“With competitive dynamics evolving rapidly, it is unclear who the long-term winners will be,” she added. “This uncertainty has led to underperformance across much of big tech, even as the broader market remains relatively resilient.”
In economic news, the National Association of Home Builders reported that confidence among U.S. homebuilders weakened unexpectedly in February. The NAHB/Wells Fargo Housing Market Index slipped to 36 from 37 in January, missing expectations for a rise to 38 and marking its lowest level since September’s reading of 32.
Sector performance was mixed. Computer hardware stocks remained under pressure, with the NYSE Arca Computer Hardware Index dropping 3.2%. Gold-related shares also declined in tandem with bullion prices, pushing the NYSE Arca Gold Bugs Index down 3.2%. Housing, software and energy names also lagged.
By contrast, airline stocks outperformed, lifting the NYSE Arca Airline Index by 2.5% on the day.