U.S. equity futures moved slightly higher on Wednesday evening following a regular session that saw broad weakness in technology and AI-focused stocks. By 19:21 ET (00:21 GMT), S&P 500 Futures had inched up 0.3% to 6,923.0 points, Nasdaq 100 Futures were up 0.4% at 25,088.75 points, and Dow Jones Futures traded largely flat at 49,589.0 points.
The cash market was softer earlier in the day. The S&P 500 closed about 0.5% lower and the NASDAQ Composite fell roughly 1.5%, as renewed selling pressure hit large technology and AI-related names. The Dow Jones Industrial Average diverged, rising about 0.5% as investors shifted into more defensive and value-oriented positions.
Technology and AI-exposed equities absorbed most of the selling, extending a sector-wide slide that has persisted into early February. Software and services groups declined amid heightened concern about how rapid AI developments could alter established business models and squeeze margins for incumbent players.
Advanced Micro Devices (NASDAQ:AMD) was a prominent negative catalyst. AMD’s shares plunged about 17% after the company released quarterly results and provided a forecast that fell short of elevated market expectations. While the chipmaker pointed to strong AI-related demand, investor focus centered on potential pricing pressure and mounting competition in data centres, prompting the stock’s steepest single-day drop in years.
Attention also turned to Alphabet (NASDAQ:GOOGL), which reported results after the bell. The Google parent logged solid advertising revenue and reiterated plans for substantial investment in AI infrastructure. Nevertheless, market participants appeared cautious about the immediate implications of those investments for near-term profitability. Alphabet shares fell more than 1% in extended trading.
Qualcomm (NASDAQ:QCOM) also weighed on sentiment, with its shares sliding nearly 10% in post-market trade after the company projected second-quarter revenue and profit below Wall Street estimates. Qualcomm cited a global memory chip shortage that it expects will weigh on mobile phone sales and broader device demand.
Economic data added to the backdrop for market participants. Private payrolls increased by 22,000 jobs in January, well under the 50,000 gain that had been expected and following a downward revision to December’s 37,000 increase. The monthly government jobs report, which is closely watched by investors, was postponed earlier in the week due to a brief government shutdown.
With the delayed non-farm payrolls report now rescheduled, traders are focused on weekly jobless claims due on Thursday for another near-term read on labour-market conditions ahead of the full jobs report.
Market context:
- Futures were modestly firmer after a tech-led pullback in the cash session.
- Major tech names reported results and issued guidance that left investors concerned about near-term margins and demand.
- Labour-market data showed private payrolls growth below expectations, and the headline jobs report was delayed by a brief government shutdown.