(Reuters) – Futures for U.S. stock indexes showed a slight increase on Wednesday, bouncing back from recent significant losses. Investors are closely monitoring the progress of a key tax-cut proposal moving through Congress and eagerly awaiting pivotal updates from leading artificial intelligence company Nvidia. As of 05:36 a.m. ET, Dow E-minis were up by 101 points, or 0.23%, S&P 500 E-minis were higher by 27.75 points, or 0.46%, and Nasdaq 100 E-minis saw a rise of 163.5 points, or 0.77%.
Investor nerves have been on edge following recent data releases, including Tuesday’s disappointing consumer sentiment report, raising concerns about potential economic slowdown in the largest economy globally. This unease is compounded by persistent inflation, which has led the Federal Reserve to approach any further interest rate cuts cautiously.
The S&P 500 and the Nasdaq experienced their most substantial declines in a four-day period since September, primarily attributed to weakness in the technology sector. Analysts have hinted at concerns over industry oversaturation and excessive spending on artificial intelligence. The upcoming quarterly results and forecasts from AI giant Nvidia, due after market hours, are expected to greatly influence Wall Street sentiment. This comes on the heels of China’s DeepSeek introducing low-cost AI models in January, causing a stir in the sector.
In premarket trading, Nvidia’s stock gained 2.6%, while competitors Broadcom and Advanced Micro Devices saw increases of 2.3% and 1.5%, respectively. Large-cap companies like Amazon.com and Alphabet saw rises of 0.9% each, with Tesla climbing by 1.8% after briefly dipping below a $1 trillion market value.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted, “Investors have become accustomed to robust results, so any hint of risk could temper optimism from strong outcomes. With the current market volatility, Nvidia faces the challenge of boosting market sentiment this week. Failure to do so could lead to accelerated stock selloffs despite decreasing yields.”
On the fiscal front, President Donald Trump’s $4.5 trillion tax-cut and border security proposal is set to move to the U.S. Senate after passing the House of Representatives. Expectations that Trump’s 2017 tax cuts might be extended have contributed to positive investor sentiment following his election victory. Amid broader economic uncertainties, futures for the domestically-focused Russell 2000 index inched up by 0.2%, while Treasury bond yields recovered slightly from Tuesday’s declines.
Traders are anticipating the Fed’s first interest rate cut in July, as indicated by data compiled by LSEG. Remarks from policymakers Thomas Barkin and Raphael Bostic, scheduled for later in the day, are likely to echo the central bank’s cautious stance.
In the realm of global trade, Trump
