The major index futures indicate a potential increase at the open on Wednesday, suggesting that stocks may trend upward after the mixed performance observed in the prior session. Technology stocks could potentially drive an initial upward movement, as indicated by the 0.6 percent increase in Nasdaq 100 futures. Shares of Advanced Micro Devices are surging by 6.5 percent in pre-market trading after Lisa Su predicted the chipmaker’s annual revenue growth will average more than 35 percent over the next three to five years. Su also stated that AMD could potentially attain “double-digit” market share in the data center AI chip sector, which is presently led by Nvidia. Nvidia’s shares are experiencing notable pre-market strength following a substantial decline that impacted the Nasdaq on Tuesday.
The upward momentum coincides with the House of Representatives gearing up to vote on legislation aimed at concluding the longest government shutdown in U.S. history. Following the Senate’s approval of the bill on Monday, which extends funding for the majority of agencies until January 30th, the House is scheduled to cast its vote on the legislation later this evening. In the wake of the rally that characterized the beginning of the week, the principal stock indexes exhibited markedly divergent movements during Tuesday’s trading session. While the Dow continued its robust upward trajectory observed on Monday and the S&P 500 rebounded from initial weakness, the tech-heavy Nasdaq retreated into negative territory.
The Dow experienced an increase of 559.33 points, representing a rise of 1.2 percent, concluding at 47,927.96. Meanwhile, the S&P 500 saw an uptick of 14.18 points, or 0.2 percent, finishing at 6,846.61. In contrast, the Nasdaq declined by 58.87 points, equivalent to a decrease of 0.3 percent, closing at 23,468.30. The varied performance observed, reflects traders’ apprehensions regarding the short-term market outlook, particularly concerning the potential emergence of a tech bubble in light of recent volatility. On Monday, stocks experienced a rally driven by optimism surrounding a potential conclusion to the unprecedented U.S. government shutdown, recovering from the significant downturn observed in the previous week.
Nonetheless, concerns regarding valuation persist in the markets, as traders have predominantly dismissed apprehensions about the economic ramifications of the shutdown. The continued advance by the Dow occurred alongside robust gains from Nike, Merck, and Amgen. Meanwhile, a 3.0 percent slump by shares of Nvidia weighed on the Nasdaq after Softbank sold its entire stake in the chipmaker for more than $5 billion.