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US stock futures gained on Wednesday in a sign that AI fears are waning, as investors waited for a fresh batch of earnings and for Federal Reserve minutes to give insight into interest-rate cuts.
S&P 500 futures (ES=F) added 0.5^%, while those on the tech-heavy Nasdaq 100 (NQ=F) moved roughly 0.6% higher. Meanwhile, Dow Jones Industrial Average futures (YM=F) added 0.4% after the major US gauges closed Tuesday with modest gains.
Technology stocks are recovering composure after a turbulent stretch that saw software names in particular take a bruising. But while the pressure is easing, investors are still weighing the long-term impact of AI on business models and corporate competition, adding to the long-running debate over when AI spending will pay off.
Attention is turning now to the Fed’s January meeting minutes later Wednesday for insight into policymakers’ thinking on the economy and rates. Officials are expected to see three cuts, while markets are pricing in at least two reductions this year. Those bets could change with Friday’s release of the Personal Consumption Expenditures index, a key inflation input for the Fed.
On the corporate calendar, earnings from DoorDash (DASH), eBay (EBAY), and Analog Devices (ADI) are set for release Wednesday.
LIVE 6 updates
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Inside CH Robinson’s AI sell-off
You might recall that shares of transportation logistics player CH Robinson (CHRW) were run over last week out of the blue. The company had no earnings report. Execs weren’t presenting at an investment banking conference.
Instead, the stock was swept up into the AI sell-off after Algorhythm Holdings (RIME) said it had created software that made transport logistics way more efficient.
I think the sell-off was very overdone, and in no way reflective of CH Robinson’s impressive fundamentals. The company is at the forefront of using AI in its business. In fact, it has stripped a ton of costs from its business thanks to its first-mover advantage in AI.
You can find out what CH Robinson CEO Dave Bozeman has to say about it, live on the Opening Bid show at 9:45 a.m. ET today.I expect Bozeman to fiercely defend his company, as he should.
Tune in here or on the Yahoo Finance mobile app.
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Berkshire cuts Amazon stake, makes bets on New York Times
Shares of The New York Times Co. (NYT) popped in premarket trading after Berkshire Hathaway (BRK-B, BRK-A) made a new multibillion-dollar investment in the publisher.
The fourth quarter move was seen as a vote of confidence in the NYT’s strategy from Berkshire, which dumped holdings in dozens of newspapers in 2020. It’s also one of Berkshire’s last with Warren Buffett as CEO, after he handed the reins of the conglomerate to Greg Abel in January.
From Bloomberg:
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Premarket trending tickers: Palo Alto, Western Digital, Sandisk, and SSR Mining
Palo Alto (PANW) stock fell 7% before the bell on Wednesday after the company cut its full-year earnings outlook on Tuesday.
Western Digital (WDC) stock rose 2% during premarket hours on Wednesday following its annoucment that it will raise $3.17 billion by selling its stake in Sandisk (SNDK). Sandisk stock fell by 2% during premarket trading today.
SSR Mining (SSRM) stock rose by 7% before the bell on Wednesday after reporting higher fourth-quarter adjusted earnings and revenue during prior days trading. The mining company said it expects to see a 10% increase in its gold-equivalent production of 450,000 to 535,000 ounces from its Marigold, CC&V, Seabee and Puna operations.
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Nvidia and Meta expand their GPU team-up with millions of additional AI chips
Shares of Nvidia (NVDA) rose in premarket trading as investors assessed fresh moves from the AI chip leader, including a boosted India AI build-out and the sale of its stake in chip tech firm Arm (ARM).
The highlight is news that Meta (META) has agreed to buy millions of Blackwell and Rubin GPUs alongside other Nvidia processors in the next few years, deepening their multiyear, multi-generational partnership.
Yahoo Finance’s Daniel Howley reports:
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Japan, US reach $36B of gas, mineral deals in Trump pact
Japan has announced that it plans to invest up to $36 billion in US oil, gas, and critical mineral projects. This investment is part of Tokyo’s $550 billion commitment, which forms part of the trade agreement it struck with President Trump last year.
“Our MASSIVE Trade Deal with Japan has just launched!” Trump posted on Tuesday on social media. “The scale of these projects are so large, and could not be done without one very special word, TARIFFS.”
Japan’s Prime Minister Sanae Takaichi said that the projects will help build more resilient supply chains through partnerships in crucial areas for economic security.
Bloomberg News reports:
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Tesla sales not suspended in California after judgement over ‘misleading’ self-driving ability
AP Finance reports:
