U.S. stock futures saw a robust climb on Wednesday, setting the stage for another potential all-time high for the S&P 500, driven by positive tech earnings, notably from Netflix. The S&P 500 futures rose by 0.4%, building on the momentum from the previous day’s record closing high. Dow Jones Industrial Average futures also indicated a return to gains, posting a 0.2% increase.
Tech stocks, particularly Nasdaq 100 futures, experienced a notable surge of almost 0.7%. Netflix’s quarterly earnings report, revealing impressive subscriber growth that exceeded expectations, contributed to the positive sentiment. The streaming giant’s shares surged by 10% in premarket trading.
Positive updates from chip gear maker ASML and software maker SAP further fueled optimism for a potential revival in the chip industry and a tech boom fueled by artificial intelligence.
Tesla, a notable laggard in the Magnificent Seven, took the spotlight in the array of corporate reports for the day. Investors closely monitored the EV maker’s delivery figures, particularly in the challenging market environment and against tough competition in China. Another tech stalwart, IBM, also presented its corporate report.
While earnings reports took center stage, the ongoing debate regarding when the Federal Reserve might implement interest rate cuts continued. Data-driven expectations are in focus, and updates on U.S. manufacturing and services activity expected on Wednesday will offer additional insights. These updates precede the release of the Fed-favored PCE inflation figures scheduled for Thursday.
