U. S. stock futures remained mostly unchanged on Tuesday evening as investors awaited key earnings reports from major technology firms and a crucial interest rate decision by the Federal Reserve. Futures linked to the Dow Jones Industrial Average edged up 19 points, or 0.04%, while S&P 500 and Nasdaq-100 futures hovered near their previous levels.
In Asia, markets showed signs of optimism. Japan's Nikkei 225 was set to rise, with the Chicago futures contract at 64,410 compared to the index's last close of 63,268.37. Hong Kong's Hang Seng index futures stood at 23,093, slightly above the previous close of 23,041.32. Meanwhile, Australia's S&P/ASX 200 gained 0.27% in early trading.
Tuesday's regular U. S. trading session saw major indices close higher, driven by gains in semiconductor stocks. Broadcom's announcement of a $63 billion financing plan for chip and networking solutions, intended for leasing to Anthropic, boosted the sector. Broadcom shares rose 4%, Advanced Micro Devices climbed 5.5%, and Micron Technology increased by 2.8%, contributing to a 1.2% rise in the Nasdaq Composite.
Lower oil prices also supported the stock market. Crude prices fell after Iran's Supreme Leader Mojtaba Khamenei met with top security official Mohsen Rezaei to discuss potential conditions for ending hostilities with the U. S.
Federal Reserve Decision and Big Tech Earnings
Attention now shifts to the Federal Reserve's policy meeting, concluding on Wednesday. The central bank is widely expected to maintain the current interest rate range of 3.75% to 4%, following a quarter-point increase in September. Market analysts estimate a 92% probability that rates will remain unchanged, though some anticipate Fed Chair might hint at future hikes. The decision will be announced at 2:00 p.m. ET.
Post-announcement, the focus will turn to the earnings reports from tech giants Alphabet and Microsoft, which are set to reveal their quarterly results. These companies, part of the so-called 'Magnificent Seven', have faced recent challenges related to AI financing concerns. Despite this, Morgan Stanley's chief U. S. equity strategist, Mike Wilson, suggested that the tech sector's correction phase might be nearing its end, citing a recent recovery in tech stocks.
Asia-Pacific markets are expected to open higher on Wednesday, buoyed by Wall Street's gains and declining oil prices. Japan's Nikkei 225 and Hong Kong's Hang Seng index futures are positioned for growth, while Australia's S&P/ASX 200 has already seen an uptick in early trade.
In other market movements, Oracle's shares rose 3.6% on Tuesday following its announcement to integrate OpenAI's ChatGPT and Codex into its applications. This expansion aims to enhance enterprise access to AI tools. Oracle also plans to incorporate Google TPUs, OpenAI's Jalapeño chip, and Cerebras hardware into its cloud infrastructure offerings.
Oracle's president of Cloud Infrastructure, Mahesh Thiagarajan, highlighted the potential for users to build, deploy, and manage applications using ChatGPT. The company is set to host OpenAI CEO Sam Altman and Oracle co-CEO Clay Magouyrk for a keynote at Oracle AI World in Las Vegas.
In after-hours trading, several companies experienced significant stock movements. Robinhood's shares fell nearly 5% after the company aligned its third-quarter revenue with expectations but lowered its full-year 2026 adjusted operating expenses forecast. Seagate Technology's stock dropped 6% despite surpassing earnings and revenue expectations in its fiscal first-quarter report. Meanwhile, NXP Semiconductors saw a 9% decline after its fourth-quarter revenue projections met expectations, with anticipated revenue between $3.85 billion and $3.86 billion.
