U.S. stock futures ticked higher early Wednesday as investors assessed shifting dynamics in the artificial intelligence trade. Dell Technologies (NYSE:DELL) lifted its full-year outlook on the back of soaring demand for AI-focused servers, while Deere & Co prepares to issue its latest quarterly numbers. Traders will also be watching for the Federal Reserve’s upcoming release of its “Beige Book” survey as expectations firm around a potential rate cut in December.
Futures inch upward
Equity futures pointed to modest gains after analysts noted widening divergences across AI-related names in the previous session.
By 02:28 ET, Dow futures were up 135 points (0.3%), S&P 500 futures had added 28 points (0.4%), and Nasdaq 100 futures were ahead by 143 points (0.6%).
Tuesday’s action on Wall Street saw all major indices move higher, with the Dow posting its strongest session since August. The S&P 500 gained 0.9% and the Nasdaq Composite rose 0.7%.
Alphabet (NASDAQ:GOOG) shares drew heavy attention, rising 1.5% and moving closer to a $4 trillion valuation following reports that the company is in talks with Meta (NASDAQ:META) to provide Google’s AI chipsets for Meta’s data centers. Google has been racing to establish itself as a meaningful AI chip maker in an effort to reduce reliance on outside suppliers.
Some analysts cautioned that the development could heighten competitive pressure for Nvidia (NASDAQ:NVDA), the chipmaker at the center of the AI boom. It also revived concerns about increasingly circular deal structures in the sector, many tied to Nvidia’s dominance.
Nvidia shares slipped 2.6%, further underscoring a widening gap between the two tech giants. So far in November, Alphabet is up 15% while Nvidia is down 12%.
Meanwhile, newly released U.S. economic data—delayed by the recent government shutdown—showed softer-than-expected retail sales in September and a rebound in producer prices. The figures did little to shake market conviction that the Fed is poised to cut rates next month as policymakers respond to a cooling labor market.
Dell boosted as AI server demand accelerates
Dell Technologies shares jumped more than 4% in after-hours trading after the company issued stronger-than-expected guidance for the current quarter.
Riding robust demand for its AI servers—many of which use Nvidia chips—Dell forecast fourth-quarter revenue of $31 billion to $32 billion, ahead of Reuters-cited LSEG estimates of $27.59 billion. Adjusted earnings are expected to come in at $3.50, above projections of $3.21.
The company also raised its full-year targets. Fiscal 2026 revenue is now projected at $111.2 billion to $112.2 billion, up from prior guidance of $105 billion to $109 billion, and adjusted earnings per share have been lifted to $9.92.
During a call with analysts, Chief Operating Officer Jeff Clarke said Dell would “do everything” it can to manage cost increases linked to higher production expenses, addressing concerns that margins could come under pressure amid rising competition from server manufacturers such as Super Micro Computer (NASDAQ:SMCI).
Dell also projected that AI server shipments will generate $25 billion in fiscal 2026 revenue—up from a previous forecast of $20 billion—and reported that new orders drove its third-quarter AI server backlog to $18.4 billion.
Deere & Co earnings on the way
Agricultural machinery maker Deere & Co (NYSE:DE) is set to headline Wednesday’s earnings calendar. Bloomberg consensus estimates point to fiscal fourth-quarter net income of $1.05 billion on revenue of $11.55 billion.
In August, Deere reported a drop in third-quarter profit and warned that widening U.S. tariffs would hit results harder than expected, with farm-equipment demand already dampened by weaker crop prices. Analysts, however, suggest that the backdrop may be improving following last month’s trade agreement between U.S. President Donald Trump and China’s Xi Jinping, as well as recent—and possibly upcoming—U.S. interest-rate cuts.
Fed’s Beige Book ahead
Later today, the Federal Reserve will publish its qualitative economic roundup, known as the “Beige Book.” With official data releases disrupted during the shutdown, analysts expect this edition to carry extra weight in shaping policymakers’ thinking ahead of the December meeting.
The October edition signaled generally steady economic activity but noted emerging signs of strain, particularly rising layoffs and reduced spending among lower- and middle-income households.
“The labor market is still weak and […] we’re getting no evidence telling me it’s rebounding,” Fed Governor Christopher Waller said in an interview with Fox Business earlier this week.
Oil hovers near monthly lows
Crude prices stabilized near their lowest levels in more than a month, with traders weighing the prospect of oversupply alongside developments in Russia-Ukraine peace negotiations.
Brent futures dipped 0.2% to $61.65 a barrel, while U.S. West Texas Intermediate contracts fell 0.5% to $57.83.
Both benchmarks finished lower Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders he was prepared to advance a U.S.-supported framework to end the war—potentially allowing Russian crude to more fully return to global markets.
However, Trump appeared to soften his stance on a Thanksgiving deadline for Ukraine to accept the plan, saying only that progress was being made.
U.S. crude inventories declined last week, according to the American Petroleum Institute. Official Energy Information Administration data is due later Wednesday.