Nasdaq futures led gains on Wednesday as results from SpaceX and Super Micro Computer revived the AI trade. Netflix slipped after a forecast that failed to impress investors. The Philadelphia SE Semiconductor index is trading at two-month lows after its longest losing streak in 18 years.
Nasdaq futures led gains on Wednesday as results from SpaceX and Super Micro Computer revived the AI trade, while Netflix slipped after its forecast failed to impress investors.
At 5:42 a.m. ET, Nasdaq 100 E-minis were up 149 points, or 0.50%. S&P 500 E-minis rose 18.75 points, or 0.24%, and Dow E-minis gained 36 points, or 0.07%.
SpaceX and Super Micro lead the AI rebound
Elon Musk's rocket and space technology firm rose 9.4% in premarket trading after he said on Tuesday that a merger of SpaceX and Tesla would be a good idea. SpaceX also posted its first profit as a public company, and Tesla shares were up 1.7%. Rocket Lab, Planet Labs and Intuitive Machines added between 2% and 4%.
Super Micro jumped 12.7% after the AI server maker forecast quarterly revenue and profit margin above Wall Street estimates, signaling that AI demand remained resilient. Peers HPE and Dell rose over 4% each.
Most chipmakers rise as the semiconductor index sits at two-month lows
Investors drew comfort from the reports as concerns over the profitability of the AI buildout triggered a selloff in AI-linked stocks last week, with data center operator CoreWeave at the center of the storm. CoreWeave was up 2.2% before the bell on Wednesday.
Most chipmakers also rose: Nvidia was up 1.5%, Intel gained 2.3% and Advanced Micro Devices added 1.8%. Still, the Philadelphia SE Semiconductor index marked eight consecutive sessions of declines, its longest losing streak in 18 years. Despite a brief reprieve on Monday, the index is trading at two-month lows.
Netflix falls on a weaker forecast
Netflix dropped over 6% after the streaming giant issued a weaker-than-expected forecast for fourth-quarter profit, days after laying off 6% of its workforce. Results from Meta and Tesla will be parsed after markets close.
Meanwhile, Brent crude futures were trading at over $110 a barrel, a near five-month high. Data last week confirmed that price pressures were seeping into the US economy, supporting the case for another interest rate hike by the Federal Reserve. The central bank meets next week.
Source: Economy News
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