Stock futures little changed after AI trade recovers from pullback: Live updates

A trader works on the floor of the New York Stock Exchange.

NYSE

Stock futures were slightly lower on Wednesday evening as investors grew less wary of eye-watering AI valuations and were encouraged by the tone of a Supreme Court hearing on President Donald Trump’s sweeping tariffs.

S&P 500 futures ticked down 0.2%, while Nasdaq 100 futures fell about 0.3%. Futures tied to the Dow Jones Industrial Average slipped 62 points, or 0.1%.

Investors increasingly expect the Supreme Court to rule against the Trump administration’s aggressive trade policy after high court justices on Wednesday expressed some skepticism about the trade taxes’ legality at a hearing in Washington. The potential ruling would trigger a rollback of the president’s tariffs, likely pushing stocks higher.

AI-linked equities have also begun rebounding from valuation concerns that swirled earlier this week—another potential boon for the major indexes.

Advanced Micro Devices closed more than 2% higher on Wednesday, after the semiconductor company reported better-than-expected third-quarter results. The performance pulled up some other AI stocks alongside it, including Broadcom and Micron Technology, which jumped 2% and 9% on the day, respectively. Oracle also recouped some recent losses during the session.

The recovery of the AI names helped the market bounce back on Wednesday following a soft start to the week that has all three major U.S. indexes in the red week to date.

“We’re still very early in the AI super-cycle,” Dynasty Financial Partners’ Shirl Penney told CNBC’s “Closing Bell” on Wednesday. “There’s going to be continued significant capex, not just with some of the ‘Mag Seven,’ but also you see it with large financial firms like Schwab, JPMorgan and others.”

Earnings season continues, with travel stocks Expedia and Airbnb as well as AI data center play Vistra among those reporting their latest financial results on Thursday.

It’s time to trim back on the Mag Seven, Torsten Slok says

It’s time for investors to trim back some exposure to the “Magnificent Seven” stocks, and get diversified in the portfolios, according to Apollo Global Management chief economist Torsten Slok.

“You and I need a balanced diet. That is the best advice we all get. And the balanced diet in finance is to have a diversified portfolio,” Slok told CNBC’s “Power Lunch” on Wednesday.

“And if you really step back and think about what the consequences are on this, it is exactly that, as an investor, there’s just so much weight on my plate now on the Mag Seven, and it is a good time to take some chips off and begin to think about, ‘well, what is it that I’m doing elsewhere?'” he said.

— Sarah Min

Stocks move after the bell on Wednesday

These are some of the companies making headlines in after-hours trading on Wednesday.

Snap — The social media company surged 26% after it unveiled a $500 million buyback program and issued strong fourth-quarter revenue guidance. On top of that, Snap said Perplexity AI will pay it $400 million to integrate the AI startup’s search capabilities into Snapchat.

Arm Holdings — Chip designer Arm Holdings’ stock rose nearly 3% after beating expectations on the top and bottom lines. Arm earned 39 cents per share, excluding items, on revenue of $1.14 billion. Analysts surveyed by LSEG had expected Arm to earn 33 cents per share on revenue of $1.06 billion. The company’s third-quarter forecast also outpaced estimates.

Figma — AI software company Figma saw its shares rise nearly 6% after it beat third-quarter revenue estimates and raised its forecast for the year. Figma reported revenue of $274 million, topping the $265 million estimate, per LSEG. The firm now expects revenue of $1.04 billion and $1.05 billion in fiscal 2025, up from its earlier forecast of $1.02 billion to $1.03 billion.

Lyft — The ride hailing stock climbed nearly 3% following an earnings beat. Lyft earned 11 cents per share. Analysts expected a profit of 8 cents per share, per LSEG.

See the full list here.

— Liz Napolitano