U.S. equity futures showed modest gains on Wednesday as volatility that characterized earlier trading sessions cooled and market participants prepared for a key earnings report from Nvidia later in the day. The market has traded unevenly in February as investors questioned whether substantial AI-related spending being touted by major technology companies is resulting in measurable financial benefits, while new tariff uncertainty has added to price swings.
Several industry groups have endured sharp selloffs in recent sessions. Sectors from commercial real estate to trucking and logistics have recorded steep declines, in part driven by fears that recent developments in the AI arena could disrupt established business models across multiple industries.
Goldman Sachs analysts framed the dilemma in a note, saying investors are searching for long-term "winners" that will use AI to lift productivity but that few companies have so far quantified the earnings impact. For firms at risk of disruption, the analysts wrote, stabilizing earnings is a prerequisite for stabilizing share prices, though they cautioned that uncertainty around disruption is unlikely to be resolved quickly.
On the political front, U.S. President Donald Trump used his State of the Union address on Tuesday to highlight gains in the stock market and to assert that "almost all" countries and corporations want to adhere to prior tariff and investment agreements with the United States. A temporary global tariff of 10% imposed by the administration came into effect on Tuesday following a broad Supreme Court ruling last week. President Trump later said the levy would be 15%, but it remained unclear when or whether that higher rate would be implemented.
Sentiment toward AI-exposed stocks improved on Tuesday, lifting indexes such as the tech-heavy Nasdaq, which closed more than 1% higher. At 04:49 a.m. ET on Wednesday, equity futures showed modest gains: Dow E-minis were up 58 points, or 0.12%; S&P 500 E-minis were up 10 points, or 0.14%; and Nasdaq 100 E-minis were up 48.75 points, or 0.19%.
Nvidia’s fourth-quarter results, expected after markets close on Wednesday, were in focus as AI investors looked for signs that the chipmaker’s profits are expanding in line with a Big Tech capital spending budget of $630 billion projected for 2026. In premarket activity, Nvidia’s shares were up about 0.5%.
Other large-cap and growth stocks showed a mixed premarket performance. Axon Enterprise rose sharply, gaining 15.9% after the maker of Tasers reported better-than-expected fourth-quarter profits. Workday fell 8.9% after the enterprise software company forecast fiscal 2027 subscription revenue below estimates. First Solar declined 15.2% after projecting annual sales below expectations, and HP Inc dropped 5.1% after warning of a downturn in PC shipments.
Some major retailers and consumer names were scheduled to report results before the opening bell, with off-price retailer TJX Companies and home improvement chain Lowe’s Companies among the notable companies on the calendar.
Investors will also track earnings from large software firms later in the week, including Salesforce, Intuit and Snowflake. The S&P 500 software and services index has fallen almost 23% so far this year amid mounting fears about AI-driven disruption within the sector.
Market participants were additionally monitoring Federal Reserve commentary. At least three Fed officials were slated to speak through the day as investors looked for indications about future monetary policy paths. Two Fed speakers on Tuesday signaled they did not see a near-term case for changing the current interest rate settings.
Investment product note included in original reporting: The article also referenced an AI-driven research product that evaluates companies including Intuit using more than 100 financial metrics. That product is described as identifying stock ideas based on fundamentals, momentum and valuation, and the original copy named past winners such as Super Micro Computer (+185%) and AppLovin (+157%). The product is presented as a tool that highlights whether Intuit is included in any of its strategies or if alternatives exist in the same sector.
As markets awaited Nvidia’s closely watched earnings release, participants were balancing improving AI sentiment against lingering questions about how quickly and broadly AI spending will translate into corporate earnings. Tariff developments and incoming Fed commentary added additional variables to a trading environment that has so far been uneven this month.
Summary
Futures moved slightly higher ahead of Nvidia’s earnings report, as optimism around AI stocks returned somewhat and traders continued to weigh the implications of a new tariff measure and forthcoming Federal Reserve remarks. Industry groups exposed to disruption have seen notable weakness, while several companies reported earnings that produced sizable market moves in premarket trading.