U.S. stock index futures were largely unchanged late Wednesday, reflecting a cautious tone after a sharp selloff on Wall Street. Investors weighed strong corporate earnings against lingering concerns over inflation, economic momentum, and stretched valuations in technology stocks. S&P 500 futures dipped nearly 0.1% to 6,773.5, while Nasdaq 100 futures edged higher to 24,912. Dow Jones futures slipped 0.2% to 48,163.
Sentiment was also shaped by remarks from President Donald Trump, who announced a $1,776 payout for U.S. military personnel and said he would soon name his nominee for the next Federal Reserve chair. Trump also signaled plans for sweeping housing reforms next year. While the announcements briefly trimmed gains, they did little to alter the broader wait-and-see stance ahead of inflation data.
Earlier losses on Wall Street underscored investor unease. The S&P 500 fell 1.2%, the Nasdaq Composite slid 1.8%, and the Dow dropped 0.5%, led by renewed weakness in large-cap technology shares tied to artificial intelligence spending.
Micron’s AI Bet Lifts Semiconductors
Micron Technology emerged as a bright spot, with shares jumping more than 7% in after-hours trading. The memory-chip maker beat expectations for its fiscal first quarter and delivered guidance that far exceeded forecasts. Micron projected adjusted earnings of $8.42 per share, plus or minus 20 cents, for the current quarter—nearly double the $4.49 analysts had expected.
The company pointed to sustained demand from artificial intelligence applications, particularly data centers requiring high-bandwidth memory. Micron, alongside Samsung Electronics and SK Hynix, is a critical supplier of these components, which are essential for advanced AI processors.
Key takeaways from Micron’s results include:
- Strong pricing power for high-bandwidth memory chips
- Continued investment by cloud and AI infrastructure providers
- AI demand offsetting weak consumer electronics sales
Despite the upbeat results, broader confidence in the AI trade remains fragile. Investors have questioned whether returns can justify heavy capital spending, a concern that has driven recent pullbacks across the sector.
CPI Data in Focus as Policy Signals Loom
Looking ahead, markets are bracing for November’s U.S. Consumer Price Index report, a key input for Federal Reserve policy decisions. Headline inflation is expected to rise slightly to 3.1% year over year, while core CPI is forecast to hold near 3%.
Inflation trends and labor-market conditions remain central to the Fed’s outlook on interest rates. Stronger-than-expected nonfarm payrolls earlier this week suggested economic resilience, even as unemployment ticked higher. Any indication that inflation remains stubborn could reduce the likelihood of near-term rate cuts.
Beyond macro data, individual stocks continued to move on company-specific news. Instacart slid sharply on reports of an FTC probe into alleged AI-driven price discrimination, while Coinbase gained after announcing plans to add stock trading and prediction market contracts. Together, the developments highlight a market caught between innovation-led optimism and policy-driven caution.
