Nasdaq Futures Higher After Asian AI Rally, Brent Crude Holds Close to $110 — Update
By Joe StonorNasdaq futures rose after artificial-intelligence stocks rallied in Asia and Europe, though investor sentiment remained muted as oil prices held close to $110 a barrel.After volatile trade in the last session ended with the Nasdaq closing flat, futures for the tech-heavy index gained 0.6% on Wednesday. Investor concerns remain around the business models of cloud-computing companies and the impact of higher borrowing rates on the AI ecosystem. Still, chip makers and data-center stocks rose across the board premarket. Micron Technology and Intel each gained over 2% premarket as investors moved back into AI names that fell sharply last week.The rally followed signs of recovery for AI stocks in Asia. South Korea's chip-dominated Kospi closed 3.3% higher. In Japan, the Nikkei 225 rose 0.85%. AI stocks rallied in Europe, too, as the continent-wide Stoxx 600 rose 0.65%.Futures for the Dow Jones Industrial Average were 0.2% higher. Contracts for the S&P 500, which doesn't include standout premarket performer SpaceX, rose 0.25%. Investors jumped on the Elon Musk-run group's first profits as a public company, lifting shares over 8% premarket. Earnings on Tuesday from streamer Netflix were less well received, with shares falling more than 6% premarket.Treasurys were little moved as investors continued to price a high probability of the Federal Reserve standing pat on rates next week. Markets see an 85% likelihood the Fed will hold, according to LSEG. Ten-year Treasury yields slipped below 5.100%, while 30-year yields also edged lower to trade around 5.400%. Two-year yields slipped slightly to 4.782%.French government bonds continued to sell off, with yields on 10-year OATs rising by 6 basis points to trade just under 5%--on track for their highest close since July 2002.Oil prices rose as ships transiting through the Strait of Hormuz faced continued attacks, while U.S. industry data showed a decline in crude product inventories. Benchmark Brent crude contracts rose 0.3% to $109.15 a barrel.The dollar slipped to trade around a three-week low against a basket of global currencies. Bitcoin rose back above $83,000, while New York gold futures nudged up 0.3% at $4,155 a troy ounce.For the day ahead, AI investors will look to narrative-shaping earnings from Meta Platforms, Texas Instruments and Lam Research and others after the closing bell. The economic calendar remains light, though the U.S. Treasury is set to hold a $13 billion 20-year bond auction.Write to Joe Stonor at [email protected]