Stock index futures pushed higher early Wednesday, building on record closes for the S&P 500 and Nasdaq from the previous session. The upward momentum was fueled by continued enthusiasm around artificial intelligence and strength in semiconductor stocks. At 4:42 a.m. ET, Dow e-minis gained 195 points, or 0.39%, while S&P 500 e-minis rose 21 points, or 0.28%. Nasdaq 100 e-minis advanced 134 points, or 0.45%.
Goldman Sachs Raises S&P 500 Target
Goldman Sachs raised its 2026 year-end target for the S&P 500 to 8,000 from 7,600, representing a 6.4% increase from Tuesday's close of 7,519.12. The investment bank also lifted its earnings per share estimate to $340 for 2026 and $385 for 2027, signaling confidence in corporate profit growth amid the AI-driven rally.
Micron Surges on Bullish Analyst Call
Micron Technology led the semiconductor sector higher after UBS analyst Timothy Arcuri raised his price target on the stock to $1,625 from $535, citing stronger AI demand and favorable supply agreements. This makes UBS the most bullish among the 46 firms covering Micron. Arcuri stated he sees no reason why Micron should trade differently from Nvidia on a price-to-earnings basis. Mizuho's Vijay Rakesh described memory chips as the backbone of AI, noting that demand is outpacing supply into 2026-2027. Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, said the rally reflects significantly higher memory chip prices that are likely to persist for years.
Zscaler Falls on Weak Guidance
Zscaler slid in premarket trading after its fourth-quarter revenue outlook missed estimates, putting pressure on software and cybersecurity stocks. The company's disappointing guidance comes as competitors like Palo Alto Networks continue to gain market share. Zscaler CFO Kevin Rubin highlighted record profitability in the third quarter and emphasized the company's focus on driving profitable growth, but shares still slipped on the light revenue forecast.
Oil Prices Decline Amid Geopolitical Developments
Oil prices moved lower as traders weighed U.S.-Iran peace talks against ongoing violence. Brent crude fell $3.11 to settle at $96.47 a barrel, while West Texas Intermediate dropped $3.64 to $90.25. PVM analyst Tamas Varga noted palpable progress toward ending the crisis, which weighed on crude prices.
Global Markets Rally
Stocks rose across regions outside Wall Street, with European markets up 0.3% and Asian shares climbing. Japan and South Korea both hit all-time highs, driven by AI optimism. The broad-based rally reflects continued investor confidence in technology and growth sectors, though concerns over the U.S.-Iran truce remain.
Key Economic Data Ahead
The rally faces a potential test on Thursday with the release of the April Personal Income and Outlays report, which includes the personal consumption expenditures price index—a key inflation gauge. If inflation comes in hotter than expected, it could squeeze expensive tech stocks. Additionally, any bounce in oil prices, a stronger-than-expected inflation number, or a move higher in bond yields could create headwinds for the market.
