Dow Jones futures rose 0.2% early Wednesday, with S&P 500 and Nasdaq-100 futures also higher, as traders awaited the July consumer price index report and digested strong overnight earnings from Nvidia partners. The gains follow a Tuesday session in which the Dow, S&P 500 and Nasdaq composite all closed lower.
Dow Jones futures climbed 0.2% early Wednesday, while S&P 500 futures advanced 0.3% and Nasdaq-100 futures climbed 0.7%, ahead of the July consumer price index report due at 8:30 a.m. ET.
Optical play Lumentum Holdings, AI server maker Super Micro Computer and AI compute play CoreWeave jumped in premarket trading after strong results and guidance released after Tuesday's close. All three are Nvidia partners, and CoreWeave rose more than 15%, with the AI chip giant holding strategic stakes in Lumentum and CoreWeave. The results appeared to lift AI hardware and buildout stocks more broadly, though the lift to close peers was especially pronounced.
CPI Report Looms Over Rate Path
Core CPI is expected to rise 0.2% from June, with the 12-month inflation reading dipping to 2.5% from 2.6%. A tame reading could ease calls for a September Federal Reserve rate hike, though futures gains ahead of the data don't necessarily carry through into the regular session.
Tuesday's Losses Set the Stage
The Dow fell 0.4% Tuesday, while the S&P 500 declined 0.3% and the Nasdaq composite shed 0.6%. The small-cap Russell 2000 rose 0.3%. Alphabet and Amazon weighed on the major indexes, losing 3.8% and 2.1% respectively.
Higher oil prices added to the caution. U.S. crude rose 1.3% to $83.20 a barrel as Strait of Hormuz reopening hopes wane, with President Donald Trump and Iran stepping up demands. The 10-year Treasury yield fell one basis point to 4.68%.
Source: Investor's Business Daily
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