U.S. stock futures edged higher early Wednesday, with technology shares leading the charge after Advanced Micro Devices (AMD) delivered a bullish outlook tied to artificial intelligence demand. Nasdaq 100 futures gained 0.69% as of 3:40 a.m. ET, while S&P 500 futures rose 0.28% and Dow futures added 0.16%. Oil prices slipped, providing further relief to equity markets as traders monitored potential progress in U.S.-Iran negotiations.
The moves come on the heels of a strong Tuesday session that saw the S&P 500 climb 0.81% and the Nasdaq Composite advance 1.03%, both closing at record highs. The Dow Jones Industrial Average also finished higher, up 0.73%. The Philadelphia Semiconductor Index surged 4.2% to a record close, underscoring the strength in chip stocks.
AMD reported first-quarter revenue of $10.3 billion, up 38% year-over-year, with its data center segment jumping 57% to $5.8 billion. The company forecast second-quarter revenue of approximately $11.2 billion, plus or minus $300 million. CEO Lisa Su emphasized that data center is now the primary driver of both revenue and profit growth. The results underscore AMD's ongoing battle with Nvidia for dominance in the AI chip market, while Intel also pushes to regain share through its expanding manufacturing capacity.
In after-hours trading, Super Micro Computer (SMCI) surged 18% after the AI-server company projected fourth-quarter revenue between $11 billion and $12.5 billion, with adjusted earnings per share of 65 to 79 cents, both above analyst estimates. The strong guidance reflects sustained demand for AI infrastructure.
Oil prices eased, with Brent crude falling 1.5% to $108.18 a barrel and West Texas Intermediate slipping 1.6% to $100.60. The decline was fueled by President Donald Trump's decision to end the Strait of Hormuz escort mission, though Iranian port blockades continue. "Prices are holding high. With no clear peace path and slow-moving trade flows, the market's on edge," said Anh Pham, senior research specialist for oil at LSEG.
Global markets also rose, with the Stoxx Europe 600 up 1.1% and Asian stocks gaining on tech and commodity strength. "The road ahead is bumpy, but the direction of travel seems clear," said Geoff Yu, senior macro strategist at BNY, noting that de-escalation hopes are already priced in.
Investors are also watching for the U.S. jobs report later this week, with the ADP Employment Report due at 8:15 a.m. ET. A strong labor reading could prompt the Federal Reserve to maintain its current stance on rates. "If the data holds up, the Fed has little reason to rush into rate cuts," said Jonathan Cohn, head of U.S. rates desk strategy at Nomura.
Premarket action suggests chipmakers and AI infrastructure stocks will lead the session, but risks remain. A robust labor report could shift rate expectations higher, while any breakdown in Iran talks could refocus attention on oil prices.
