Stock index futures showed modest gains on Wednesday as markets prepared for multiple catalysts including the Federal Reserve’s interest rate announcement and earnings reports from major technology firms.
S&P 500 futures advanced 0.2%, while Nasdaq-100 futures climbed 0.3%. Dow Jones Industrial Average futures declined 0.2% as crude oil prices moved higher following military tensions in the Middle East. Brent crude gained nearly 4% to trade above $85 per barrel after Iran conducted what US Central Command characterized as an attempted surprise attack, marking a resumption of hostilities between the nations.
Chip sector weakness overshadowed positive earnings results from SK Hynix, which reported second-quarter profit growth of 557% compared to the prior year. However, the increase fell short of Wall Street expectations, triggering concerns that the artificial intelligence investment cycle might be moderating. Asian markets reflected these concerns, with the KOSPI Composite falling nearly 6% as investors sold semiconductor positions including Samsung and SK Hynix.
The technology sector faced additional scrutiny heading into the day’s major catalysts. Microsoft and Meta were scheduled to report earnings after market close, representing critical tests for the artificial intelligence investment narrative. Markets remained sensitive to capital expenditure guidance following Alphabet’s disclosure last week, which had prompted reassessment of whether the artificial intelligence boom could sustain elevated spending levels.
The Federal Reserve was set to announce its interest rate decision at 2:00 p.m. ET. Market participants broadly anticipated the central bank would maintain rates at current levels, though elevated inflation readings and recent Federal Reserve communication restrictions left scope for a potential rate increase, which would mark the first such move in three years. Beyond major technology companies, earnings reports from consumer-oriented firms including Procter & Gamble, Starbucks, and Chipotle Mexican Grill were also scheduled for release, along with results from semiconductor companies Qualcomm and Arm Holdings.
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