US stock futures experienced an uptick on Wednesday, with the Dow Jones Industrial Average approaching a new all-time high as jubilant earnings reports fueled optimism surrounding artificial intelligence (AI) and the likelihood of an imminent resolution to the protracted US government shutdown.
The futures for the Dow (YM=F) climbed by 0.3%, following the blue-chip index’s record-setting closing performance on Tuesday, amidst a mixed trading session for equities. Contracts for the S&P 500 (ES=F) advanced nearly 0.4%, while the Nasdaq 100 (NQ=F) surged by almost 0.6%.
Tech-oriented indices surged further following a bold sales forecast from AMD’s CEO, which was primarily driven by its AI initiatives.
Earnings reports have amplified AI enthusiasm, with Nvidia (NVDA) partner Foxconn (2317.TW, HNHPF) projecting sustained growth in data centers, a sentiment echoed by German semiconductor manufacturer Infineon (IFX.DE).
In premarket trading, AMD shares soared over 5%, while Nvidia rose by more than 1%, highlighting a rebound in semiconductor stocks.
Additionally, the prevailing sentiment was buoyed by increasing optimism surrounding a critical House vote that could potentially terminate the longest government shutdown in US history later today.
The decisive ballot is anticipated around 7 p.m. ET, and swift approval from President Trump is expected, given his endorsement of the proposal.
A reopening of the government could release a backlog of economic data stalled by the shutdown, including the crucial September jobs report, possibly available as early as next week.
Wall Street is eager for comprehensive insights into the economy after relying on private data to ascertain the Federal Reserve’s forthcoming decisions regarding interest rates.
Several Federal Reserve officials are scheduled to speak on Wednesday, including Trump’s most recent appointee, Stephen Miran. Christopher Waller, reportedly a frontrunner for the central bank’s chairmanship, is also among the speakers.
Attention will be focused on potential clues regarding the Fed’s policy choices at the December meeting, where expectations largely lean towards a quarter-point rate reduction.
As earnings season continues at a measured pace, most S&P 500 companies have already reported their figures. Cisco (CSCO) is set to be the main attraction when results are unveiled after market hours.
Ahead of the opening bell, cryptocurrency firm Circle (CRCL) exceeded quarterly profit expectations due to its growth in stablecoin activity, yet its shares declined in value.
Good morning. Here’s what’s happening today.
Economic data: MBA mortgage applications (week ended Nov. 7)
Earnings calendar: Cisco Systems (CSCO), TransDigm (TDG), Manulife (MFC), Flutter Entertainment (FLUT), Tencent Music Entertainment (TME), ORIX Corporation (IX), Circle (CRCL), GlobalFoundries (GFS), Pan American Silver Corp (PAAS), Ascendis Pharma (ASND), On Holding (ONON), Firefly Aerospace (FLY), McGraw-Hill (MH)
Here are some of the biggest stories you may have missed overnight and early this morning:
- How the AI phenomenon may be causing investors to miss opportunities
- House lawmakers reconvene to seek government reopening by evening
- House considers a stock-trading prohibition upon government resumption
- AMD shares rise as investors respond favorably to growth targets
- Circle reports quarterly revenue increase fueled by stablecoin expansion
- Goldman categorizes US stocks as likely to lag behind global counterparts in the coming decade
- Foxconn hints at an OpenAI collaboration, projecting robust AI demand
- China accuses the US of orchestrating a $13 billion Bitcoin hack
- SoftBank’s shares decline as Nvidia’s sale underscores AI funding necessities
Circle falls after quarterly profit beats estimates on stablecoin growth
Circle (CRCL) experienced a 3% decline in premarket trading on Wednesday despite surpassing Wall Street expectations for its third-quarter earnings, which benefited from increased reserve income linked to a rise in the circulation of its USDC stablecoin.
Premarket trending tickers: Bill, Micron, and Lyft
Bill Holdings (BILL) shares surged by 12% in premarket trading amid reports indicating that the payment platform is contemplating a potential sale.
Micron (MU) reported a 2% increase prior to the market opening, spurred by the ascent in AMD shares following CEO Lisa Su’s optimistic speech and outlook the previous day.
Lyft (LYFT) saw a 2% uptick in premarket trading after analysts revised their price targets upwards.
Nvidia supplier Foxconn optimistic about AI demand, hints at OpenAI announcement
Foxconn (2317.TW, HNHPF), Taiwan’s dominant contract electronics manufacturer, garnered a 1% rise in shares on Wednesday as it expressed a positive forecast regarding demand related to AI, forecasting it as a significant driver of growth into 2026, while hinting at an impending announcement next week in collaboration with OpenAI (OPAI.PVT).
IBM debuts new quantum chip
IBM (IBM) announced the introduction of a new quantum computing chip on Wednesday, projected for release by the conclusion of 2026, aimed at significant advancements in practical quantum computing applications.
The IBM Quantum Nighthawk chip, designed to work in conjunction with the company’s quantum software, aims to facilitate the attainment of “quantum advantage” within the next year.
This advantage alludes to a benchmark wherein quantum computing yields superior outcomes compared to any classical computational methodologies, as explained by IBM’s vice president of quantum adoption, Scott Crowder, in an interview with Yahoo Finance.
IBM is currently collaborating with diverse clients, including Boeing (BA), Lockheed Martin (LMT), and Vanguard, to employ its quantum technologies, with aspirations to unveil the first large-scale, fault-tolerant quantum computer named Starling by 2029.
Quantum equities have skyrocketed over the past year as tech giants like Google (GOOG) and Nvidia (NVDA), alongside dedicated quantum tech firms such as Rigetti (RGTI) and IonQ (IONQ), have rolled out innovative chips and software.
Nevertheless, IBM remains committed to maintaining its market leadership.
“In terms of adoption metrics, we maintain a substantial lead,” stated Crowder. “Many of our competitors display significant gaps in their developmental timelines.”
The company’s stock has appreciated approximately 43% year-to-date.
AMD CEO forecasts 60% jump in data center revenue as market hits $1 trillion
Shares of Advanced Micro Devices (AMD) increased over 5% in premarket trading following CEO Lisa Su’s ambitious projections presented during the chipmaker’s analyst day.
Japan’s finance minister issues a warning as the yen falls toward a critical level
Japanese Finance Minister Satsuki Katayama has issued a renewed caution about currency volatility as the yen (JPY=X) approaches the critical threshold of 155 per dollar, nearing levels where market intervention was previously triggered.
“We have observed one-sided, rapid currency fluctuations lately,” Katayama remarked in a parliamentary session on Wednesday, acknowledging that the adverse effects of yen depreciation are becoming increasingly evident.
“The government is vigilantly monitoring for excessive and disorderly movements with heightened urgency.”
These remarks come amidst growing apprehension in the markets regarding the yen’s gradual approach to intervention-triggering levels.
While many analysts still view this as a distant away, further depreciation of the yen could fuel additional speculation, compelling Katayama to consider more frequent verbal interventions before contemplating actual measures.
The last instance of Japan intervening in the foreign exchange market occurred in July of the previous year, when the yen hovered around 160 to the dollar.
Gold halts three-day streak of gains as traders assess potential end to government shutdown
Gold prices experienced a reversal after a three-day period of increases as traders began to evaluate the implications of a possible end to the government shutdown.
Source link: Finance.yahoo.com.
