Wall Street set for a rebound as Nvidia and CoreWeave lift tech
US stock futures point higher before the open on Wednesday after the S&P 500 fell 0.46% and the Nasdaq 100 lost 0.60% on Tuesday. AI sentiment recovers, while the dollar index stands at 102.4380.
- 01The S&P 500 closed Tuesday at 7521.26, down 0.46%; the Nasdaq 100 ended at 27740.8, down 0.60%.
- 02Nasdaq futures led stock futures higher on Wednesday as AI sentiment rebounded.
- 03Nvidia shares rose about 4% in premarket trading after two days of declines.
- 04The US Dollar Index stands at 102.4380, up 0.77%.
US stock futures pointed higher before the open on Wednesday, with Nasdaq futures in the lead. The move follows a Tuesday session in which the S&P 500 fell 0.46% to 7521.26.
What happened
On Tuesday the S&P 500 lost 34.9 points to close at 7521.26, from a previous close of 7556.16. The Nasdaq 100 fell 0.60%, or 166.83 points, to 27740.8. Tuesday's weakness came as concerns about Federal Reserve rate hikes returned to the market.
Futures recovered on Wednesday as artificial-intelligence sentiment rebounded. Nvidia shares gained about 4% in premarket trading after falling for two days. CoreWeave rose after its third-quarter results.
The US Dollar Index stands at 102.4380, up 0.77% from a previous close of 101.6530.
Why it matters
CoreWeave has been at the center of AI jitters in recent sessions. Its results and outlook have eased some of that tension, and they also lifted sentiment in Europe, where the STOXX 600 traded near a record high. Siemens Energy's outlook added to that support.
Nvidia is in focus for two reasons. Investors are assessing whether a personal matter involving CEO Jensen Huang could spill over into the business, and the company is approaching its earnings release. One market commentary noted that Nvidia now trades at a discount to the S&P 500 by one measure, after its valuation fell to a 15-year low.
A stronger dollar is a separate factor. A rise of 0.77% in the dollar index in one session is a sizable move for a currency gauge, and it can affect the earnings of US multinationals and the pricing of dollar assets. For investors, the open will show whether the AI rebound can hold against rate worries and a firmer dollar.
What to watch next
The first test is whether Nvidia holds its premarket gain once the New York Stock Exchange opens at 09:30 America/New_York. Attention will also stay on Nvidia's coming earnings release and on any further news about Huang.
Rate expectations remain a key driver after Tuesday's revival of Fed rate-hike concerns. Another market commentary flagged the risk of further losses for the S&P 500. US bond markets take a Veterans Day breather, which may mean thinner trading in rates.
The dollar index is also worth tracking, as its direction could shape the tone for large-cap technology and exporters through the session.
Sources:UCapital Markets (ucapital.com)barrons.comcnbc.comwsj.comwsj.comreuters.commarketwatch.comreuters.com
UCapital24 S.p.A. or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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