Stock futures increased on Wednesday, following the previous day’s establishment of new records by the benchmark S&P 500 and the tech-centric Nasdaq Composite, as semiconductor shares maintained their upward trajectory and oil futures experienced a downturn. Futures for the Nasdaq 100, Dow Jones Industrial Average, and S&P 500 exhibited increases of 0.6%, 0.4%, and 0.3%, respectively, in the latest trading session. Yesterday, the Nasdaq Composite and S&P 500 surpassed both intraday and closing records established on May 14. Chip stocks led gains, with Micron soaring 19%. The blue-chip Dow concluded the trading session with a modest decline.
Shares of Micron, which surpassed $1 trillion in market capitalisation yesterday, indicated a further increase of 7.5% prior to the opening bell. SK Hynix crossed the $1 trillion market cap threshold in South Korean trading today as chip stocks continue to surge. AI chip designer Marvell Technology is poised to report quarterly results after the bell today, having advanced 6.5% in premarket trading following a 6% surge yesterday. Shares of Salesforce were nearly 1% lower before the bell, as the company is set to issue earnings after markets close today. They have experienced a decline of nearly one-third in value since the beginning of the year, as software stocks have faced challenges due to concerns surrounding AI disruption.
Oil prices experienced a decline on Wednesday, following a significant surge in global benchmark Brent crude futures the previous day. This increase was attributed to a U.S. military action against two Iranian vessels, which were reportedly attempting to deploy mines in the Strait of Hormuz. Front-month contracts of Brent crude experienced a decline of 2.6%, settling around $97 in recent trading sessions. Meanwhile, West Texas Intermediate futures, which serve as the U.S. crude oil benchmark, fell by 3.5% to $90.55. The 10-year Treasury yield, a key determinant of interest rates for mortgages and various consumer loans, decreased to below 4.48%, down from Tuesday’s closing figure of over 4.49%. Gold futures experienced a decline of 1.2%, settling at $4,445 per ounce. Bitcoin was at 75,900, slightly lower over the past 24 hours.
The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, decreased to 99.12. The Magnificent Seven stocks exhibited a mixed performance, registering minor fluctuations prior to the market opening. Notably, Tesla experienced an increase of over 2%, building on its previous day’s lead with a 1.8% gain. Elsewhere, shares of Zscaler tumbled almost 25% in premarket trading after the cybersecurity company issued a cautious outlook, while Insulet fell 5.5% following a “voluntary Medical Device Correction” for specific lots of certain insulin pods due to a manufacturing issue.