U.S. equity futures pointed to a firmer open on Wednesday, setting the stage for stocks to build on gains from the previous two sessions, with semiconductor names once again expected to lead the advance.
Chip-related stocks were among the strongest performers on Tuesday, and that momentum looked set to continue in early trading. U.S.-listed shares of ASML (NASDAQ:ASML) jumped about 5% in premarket action after the Dutch semiconductor equipment group delivered strong fourth-quarter results and issued upbeat guidance for 2026.
Elsewhere in the sector, South Korea’s SK Hynix surged in overseas trading after the memory chipmaker reported better-than-expected fourth-quarter earnings and posted a record full-year profit for 2025.
Sentiment also received a boost from a Reuters report indicating that China has approved purchases of Nvidia’s (NASDAQ:NVDA) H200 artificial intelligence chips by some of the country’s largest technology groups. Nvidia shares rose around 1.6% in premarket trading. Citing four people familiar with the matter, Reuters said Alibaba (NYSE:BABA), ByteDance and Tencent have been cleared to buy more than 400,000 H200 chips in total.
Overall trading volumes may remain relatively light, however, as investors look ahead to the Federal Reserve’s monetary policy decision later in the day. While the central bank is widely expected to keep interest rates unchanged, markets will be watching the voting breakdown and accompanying statement for clues on the future path of rates.
Attention will also turn to earnings after the closing bell, with tech heavyweights Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA) all due to report quarterly results.
On Tuesday, the major U.S. indexes finished mixed. The Nasdaq and the S&P 500 pushed higher, while the Dow Jones Industrial Average retreated sharply. The Nasdaq climbed 215.74 points, or 0.9%, to a near three-month closing high of 23,817.10, and the S&P 500 added 28.37 points, or 0.4%, to end at a record 6,978.60. In contrast, the Dow fell 408.99 points, or 0.8%, to close at 49,003.41, despite recovering from deeper losses earlier in the session.
Strength in the broader market reflected optimism ahead of earnings from major technology companies, including Microsoft, Apple (AAPL) and Meta Platforms. Microsoft shares rose 2.2%, Apple gained 1.1%, and Meta edged modestly higher.
Positive sentiment was also supported by upbeat results from companies such as General Motors (NYSE:GM) and UPS (NYSE:UPS). On the downside, the Dow was weighed down by a sharp sell-off in UnitedHealth (NYSE:UNH), whose shares plunged 19.6% after the insurer issued disappointing revenue guidance despite posting slightly better-than-expected fourth-quarter earnings. A Trump administration proposal calling for near-flat rates for Medicare Advantage insurers also pressured the sector.
In economic data, the Conference Board reported an unexpectedly steep drop in U.S. consumer confidence in January. Its consumer confidence index fell to 84.5 from an upwardly revised 94.2 in December, confounding expectations for a rise to 90.0 and marking the lowest reading since May 2014.
Sector-wise, semiconductor stocks posted a strong rally, with the Philadelphia Semiconductor Index surging 2.4% to a new record closing high. Computer hardware and networking stocks also advanced, helping lift the tech-heavy Nasdaq. Outside of technology, oil service stocks rose sharply alongside crude prices, pushing the Philadelphia Oil Service Index up 2.0%. By contrast, healthcare, airline and housing stocks came under notable selling pressure.