U.S. stock futures moved higher on Wednesday after a powerful rally in semiconductor shares pushed the S&P 500 and Nasdaq Composite to fresh record closes in the previous session. Investors continued to balance optimism surrounding artificial intelligence with uncertainty over negotiations aimed at ending the conflict between the United States and Iran.
By 03:34 ET, Dow futures had advanced 127 points, or 0.3%, while S&P 500 futures gained 11 points, or 0.1%. Nasdaq 100 futures rose 60 points, or 0.2%.
Wall Street finished mostly higher on Tuesday, with the S&P 500 and Nasdaq Composite both reaching new closing highs. The Dow Jones Industrial Average underperformed and ended slightly lower.
Chipmakers remained among the market’s strongest performers, supported by continued heavy investment in infrastructure tied to artificial intelligence development.
“Iran dominated the market conversation, but the parabolic surge in AI-linked stocks is occurring independent of anything happening in the Middle East,” analysts at Vital Knowledge said in a note to clients.
Micron Surpasses $1 Trillion Market Value
Micron (NASDAQ:MU) was one of the standout gainers, with its rally pushing the company’s market capitalisation above the $1 trillion threshold for the first time.
Momentum continued in premarket trading on Wednesday, with Micron shares climbing more than 4%.
Growing competition among technology companies to expand AI capabilities has driven exceptionally strong demand for advanced memory chips, particularly the high-bandwidth memory products manufactured by Micron. The company recently indicated that its entire annual supply of HBM processors has already been sold out.
The supply shortage has driven memory-chip prices sharply higher, boosting expectations for Micron’s profitability and attracting increased investor interest. Reuters, citing regulatory filings, reported that the stock has become especially popular among institutional investors.
Iran Negotiations Remain Uncertain
Markets also continued to monitor developments surrounding negotiations to end the nearly three-month-long conflict between Washington and Tehran.
According to Al Jazeera, indirect discussions between the two sides have continued despite renewed military exchanges earlier this week. The United States said the fragile ceasefire remained intact, although Iran warned it would respond if the agreement were breached.
Media reports earlier in the week suggested the two countries were close to a framework agreement that could include an extension of the ceasefire and the reopening of the Strait of Hormuz, the strategically important shipping route through which roughly one-fifth of global oil supplies pass. The waterway has been largely disrupted since the conflict began in late February.
Complicating negotiations further, the Associated Press reported renewed clashes in southern Lebanon between Israeli forces and Iran-backed Hezbollah militants. Tehran has reportedly insisted that any broader peace arrangement must also address the conflict in Lebanon.
Oil Prices Decline
Oil prices moved lower as investors assessed the evolving diplomatic situation.
Brent crude futures, the global oil benchmark, were last down 2.2% at $97.38 per barrel. Although prices have eased from recent highs above $100, Brent remains significantly above levels seen before the outbreak of the conflict.
The Strait of Hormuz remained central to market attention after Iran effectively blocked passage through the channel following the escalation of hostilities involving the United States and Israel.
Reports that several vessels had successfully crossed the route this week improved hopes that the waterway could gradually reopen, although shipping volumes remain well below pre-war levels.
Samsung Workers Approve Wage Agreement
Meanwhile, a majority of unionised workers at Samsung Electronics (USOTC:SSNHZ) approved a tentative wage deal on Wednesday, avoiding a major strike that had threatened semiconductor supply chains and the wider South Korean economy.
According to the union, approximately 74% of participating workers voted in favour of the agreement. The deal suspended plans for an 18-day strike involving around 48,000 employees, most of them working within Samsung’s semiconductor division.
Shares in Samsung closed 2.7% higher in Seoul trading.
The agreement, brokered with government involvement, was reached last week following difficult negotiations over bonuses and profit-sharing arrangements linked to booming demand for AI-related memory chips.