U.S. stock index futures pointed to a higher open on Wednesday, suggesting equities could build on the strong advances recorded in the previous trading session.
Momentum may continue to be driven by the technology sector, as investors grow increasingly optimistic ahead of earnings from AI chip leader Nvidia (NASDAQ:NVDA).
Nvidia, scheduled to report fourth-quarter results after the market close, was up 0.8% in premarket trading.
Software companies Salesforce (NYSE:CRM) and Snowflake (NYSE:SNOW) are also set to release quarterly earnings later in the day, keeping attention firmly on the tech space.
Oracle (NYSE:ORCL) could also provide support to the sector, with shares rising 2.4% in premarket trading after Oppenheimer upgraded the stock to Outperform from Perform.
Despite the positive tone, overall trading volumes may remain relatively light, as the absence of major U.S. economic data could prompt some investors to remain cautious.
Following Monday’s market sell-off, stocks rebounded sharply on Tuesday, with all three major averages posting notable gains led by technology shares.
The benchmarks finished close to session highs, with the Nasdaq climbing 236.41 points, or 1.0%, to 22,863.68. The Dow Jones Industrial Average gained 370.44 points, or 0.8%, to 49,174.50, while the S&P 500 advanced 52.32 points, or 0.8%, to 6,890.07.
Part of the rally appeared driven by bargain hunting, as investors moved back into equities after the sharp decline seen earlier in the week.
On Monday, the Dow had fallen to its lowest closing level in a month amid renewed uncertainty surrounding President Donald Trump’s tariff policies.
Semiconductor stocks played a key role in Tuesday’s rebound, with the Philadelphia Semiconductor Index rising 1.5% to a record closing high.
Advanced Micro Devices (NASDAQ:AMD) was among the strongest performers in the sector, surging 8.8%.
The gain followed AMD’s announcement of a 6-gigawatt agreement to power Meta’s (NASDAQ:META) next generation of AI infrastructure using multiple generations of AMD Instinct GPUs.
Networking stocks also showed notable strength, reflected by a 1.5% advance in the NYSE Arca Networking Index.
Oil service, gold, airline and software stocks likewise posted solid gains, joining most major sectors in moving higher.
On the economic front, data released by the Conference Board showed an improvement in U.S. consumer confidence in February.
The organization reported that its consumer confidence index rose to 91.2 in February from a revised 89.0 in January. Economists had expected the index to increase to 88.0 from the previously reported 84.5.
“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana M Peterson, Chief Economist, The Conference Board.
“Four of five components of the Index firmed,” she added. “Nonetheless, the measure remained well below the four-year peak achieved in November 2024 (112.8).”