US stock futures moved higher on Wednesday morning. S&P 500 futures gained 0.3% before the market opened. Nasdaq 100 futures climbed 0.6%, helped by a rebound in technology stocks. Dow Jones Industrial Average futures were up 15 points, or 0.03%.
Micron’s earnings report
Chipmaker Micron is scheduled to release earnings after the market closes on Wednesday. Analysts surveyed by FactSet expect Micron to report earnings of $20.83 per share on revenue of $35.75 billion, according to CNBC.
Micron stock rose nearly 4% in premarket trading. The stock had fallen 13% on Tuesday, marking one of its worst trading sessions recently. Investors are hoping strong earnings could support the semiconductor sector.
Other memory-chip stocks also bounced back
Sandisk shares gained nearly 3% in premarket trading. Sandisk had also dropped 13% during Tuesday’s trading session. The Roundhill Memory ETF (DRAM), which fell 14% on Tuesday, rose about 3% before Wednesday’s opening bell, noted by CNBC.
Intel and Qualcomm
Intel shares rose more than 1% in premarket trading after falling 6% on Tuesday. Qualcomm gained more than 1% after losing 8% in the previous session. Investors were buying back some technology stocks after Tuesday’s sharp decline.
Tuesday was a difficult day for technology stocks
The S&P 500 dropped 1.44% on Tuesday. The Nasdaq Composite fell 2.21%. The Dow Jones Industrial Average lost 45.87 points, or 0.09%. Heavy selling in semiconductor-related stocks was one of the main reasons for the market decline.
Morgan Stanley warned that AI-related risks may be increasing
Dan Skelly, Head of Market Research and Strategy at Morgan Stanley Wealth Management, said recent weakness may not be only due to technical trading factors. He said there are concerns about pricing wars among AI model builders. He also noted that rental prices for older graphics processing units (GPUs) have started to decline. Skelly said Microsoft appears to be focusing more on lower-cost AI models, which could signal a shift in the AI industry’s direction.
Trump made comments about the Strait of Hormuz
President Donald Trump said Iran informed the U.S. that ships passing through the Strait of Hormuz would not face tolls, insurance fees, or other charges. Trump also said the U.S. plans to use Iranian funds under American control to buy U.S. agricultural products for Iran, according to his Truth Social post. He said food supplies are urgently needed in Iran.
Elon Musk lost his trillionaire status
Elon Musk’s net worth has fallen to about $957 billion, according to the Bloomberg Billionaires Index. He became the world’s first trillionaire only a little over a week ago. Musk remains the richest person in the world despite the decline.
Also read: Elon Musk loses trillionaire status as SpaceX stock falls, says money will ‘stop being relevant’ due to AI
SpaceX stock has dropped 19% over the past five trading days. Tesla shares have fallen 7% during the same period. The declines reduced Musk’s paper wealth and pushed him below the $1 trillion mark.
Take-Two Interactive gained after major GTA 6 news
Shares of Take-Two Interactive rose more than 2% in premarket trading. The company announced that pre-orders for Grand Theft Auto VI will begin on Thursday. GTA 6 is scheduled to launch on Nov. 19 for PlayStation 5 and Xbox Series X and S, according to CNBC.
Oil prices continued to fall
Brent crude dropped 1.93% to $75.59 per barrel. U.S. West Texas Intermediate crude fell 1.82% to $71.88 per barrel. Brent crude reached its lowest level since before the Middle East conflict began on Feb. 28.
Cerebras stock fell despite strong revenue growth
Cerebras Systems shares dropped more than 10%. Revenue doubled over the past year. Investors focused on the company’s forecast for lower gross margins in the second quarter.
TD Cowen analyst Joshua Buchalter said margin concerns were overblown, according to CNBC. He said pricing was stronger than expected and demand for AI computing remains higher than supply. Buchalter said this is a positive sign for AI infrastructure providers.
Stock market today: Key points
- US stock futures rose Wednesday as investors bought back technology shares after Tuesday’s sharp sell-off.
- Micron’s earnings report is the biggest market event of the day and could influence chip stocks, AI-related companies, and the broader market.
- At the same time, falling oil prices, Elon Musk losing trillionaire status, and optimism around GTA 6 are also attracting investor attention.
