U.S. stock index futures rose on Wednesday morning, supported largely by strength in semiconductor shares, as investors positioned themselves ahead of quarterly reports from several of the so-called "Magnificent Seven" technology firms and a Federal Reserve interest-rate decision.
In premarket action, some of the largest moves were in chip-related names: Nvidia climbed 1.7%, Intel jumped 6.6%, and both Micron and Microchip Technology posted gains in excess of 5%. The rally in semiconductors was reinforced by upbeat industry news overseas: SK Hynix, a significant supplier to Nvidia, recorded a record quarterly profit, while ASML reported its best-ever fourth-quarter order intake. The combination of those results helped lift technology equities across markets from Europe to Asia.
Texas Instruments provided another dose of optimism for the sector, jumping 8% after the analog chipmaker said it expects first-quarter revenue and profit to come in above Wall Street estimates.
The heavyweight technology companies will come into focus again when earnings start to flow later in the day. Meta, Microsoft and Tesla are scheduled to report after the bell, marking the beginning of quarterly results from the group of stocks that has been central to the AI-related rally and broader market gains. Given the high valuations attributed to these names and the ongoing rotation into smaller-cap stocks, investors will be paying close attention to the companies' capital-allocation plans as they assess whether expected AI spending continues to support elevated multiples.
Among the Magnificent Seven names in early trade, Meta slipped 0.4%, while Microsoft and Tesla each inched up 0.2%. IBM, another major technology bellwether that is also set to report after the close, was unchanged in premarket trading.
Several consumer-oriented companies were also scheduled to report before the opening bell. Starbucks fell 0.4% in premarket activity, VF Corp was flat, and AT&T recorded a modest gain of 0.3%.
On the futures screen at 05:40 a.m. ET, Dow E-minis were up approximately 28 points, or 0.06%. S&P 500 E-minis rose about 25.25 points, or 0.36%, and Nasdaq 100 E-minis gained roughly 234 points, or 0.9%.
FED WATCH
The Federal Reserve will announce its policy decision later in the day, with most market participants expecting policymakers to hold the target federal funds rate steady in a range of 3.5% to 3.75%. Attention will be focused on the Fed's statement and on remarks from Chair Jerome Powell for any indications about the likely path of rates going forward.
The central bank is conducting policy against a backdrop that includes more timely economic data flows following last year's partial government shutdown. The Fed's task is being carried out amid an increasingly politicized environment - an element the market is watching closely as it evaluates policy communication.
This meeting also arrives after news of a Justice Department inquiry involving Chair Powell earlier this month and comments by President Donald Trump suggesting a successor might be named "soon." Those developments form part of the political context investors will monitor as the Fed communicates its decision.
Other individual-company moves included Seagate Technology, which jumped 11.3% after forecasting third-quarter revenue and profit that topped Wall Street expectations.
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Markets will remain sensitive to the combination of company-level earnings and central bank signals. The interplay between results from large-cap technology firms, semiconductor supply-chain momentum and the Fed's guidance on rates is likely to shape trading in the near term.