FX.co ★ US Futures Rebound on Wednesday

US equity futures rose on Wednesday, finding support after a subdued Tuesday session as markets reassessed the impact of AI-related disruption on the technology sector. Futures on the S&P 500 and Nasdaq 100 were up 0.4%, while Dow Jones Industrial Average contracts advanced nearly 100 points.

Investors have recently questioned whether the surge in AI infrastructure spending by the largest US tech companies will translate into commensurate revenue growth, even as it has fueled this year’s powerful rally in valuations and put pressure on mega-cap names. At the same time, advances in automation tools have weighed on software makers amid concerns they could be displaced.

Nvidia gained more than 2% in pre-market trading after Meta said it would deploy millions of Nvidia chips in its new data center. Amazon and Micron also climbed sharply after major asset managers disclosed increased positions in both companies.

Expectations that the Federal Reserve will begin cutting interest rates later this year continued to support equities ahead of the release of the latest FOMC meeting minutes due later today.