S&P 500 futures rose Wednesday evening as investors digested fresh corporate earnings and assessed results from Alphabet, following a sharp sell-off in software stocks that pushed the index to a second consecutive session of losses.
Futures tied to the S&P 500 and Nasdaq 100 advanced 0.29% and 0.45%, respectively, while Dow Jones Industrial Average futures edged up 6 points, or 0.01%.
Alphabet, the latest of the “Magnificent Seven” to report earnings, saw its shares slip nearly 1%. The company forecast a significant rise in artificial intelligence spending and projected capital expenditures of up to $185 billion in 2026. Shares of Nvidia and Broadcom gained on the news, lifting optimism around the AI trade.
Qualcomm dropped 9% after issuing a weaker-than-expected outlook, citing a global memory shortage.
Wall Street closed a volatile session earlier in the day, with the S&P 500 and Nasdaq Composite falling 0.5% and 1.5% as the tech sell-off deepened. In contrast, the Dow Jones Industrial Average climbed 260 points, or 0.5%, while the equal-weighted S&P 500 rose 0.9%.
Software stocks came under heavy pressure as concerns over AI-driven disruption sparked a broad rotation out of technology and into more attractively valued sectors. By the close, however, some investors viewed the pullback as overdone, fueling speculation that a dip-buying opportunity may be emerging.
Looking ahead, earnings season continues with results from Tapestry and Peloton Interactive due before Thursday’s open, while Amazon is set to report after the close. Traders will also monitor weekly jobless claims data scheduled for release Thursday morning.
Frequently Asked Questions
Why did S&P 500 futures rise despite recent market losses?
Investors reacted positively to earnings updates and signs the recent tech sell-off may have been overdone.
How did Alphabet’s earnings impact the market?
Alphabet’s higher AI spending outlook supported AI-related stocks like Nvidia and Broadcom, even as its own shares dipped.
Why were software stocks hit hard?
Fears of AI-driven disruption triggered a broad rotation out of software and high-valuation tech names.
What caused Qualcomm shares to fall sharply?
Qualcomm issued a weaker forecast, citing a global memory shortage, which pressured the stock.
What key events are traders watching next?
Investors are focused on upcoming earnings from Amazon, Tapestry, and Peloton, along with weekly jobless claims data.
