Oil prices climbed back above the $91 mark on Wednesday, while technology futures relinquished their initial advances as investors weighed inflation concerns and a mixed batch of corporate earnings. West Texas Intermediate crude rose to $91.74 per barrel by 05:47 EDT, up 0.8% from Tuesday's settlement, after dipping to a session low of $89.60 earlier in the overnight session.
The rebound in oil prices, which erased an earlier decline, came amid renewed geopolitical tensions between the U.S. and Iran. The 2.4% swing from the low to the high underscored the volatility in energy markets, as traders also monitored a softer dollar and lower Treasury yields, which provided some support for equities.
Meanwhile, Nasdaq-100 futures, which had gained 0.2% at 04:30 EDT, slipped to a mere 0.01% increase by 05:26 EDT, giving back most of their early advances. The Dow Jones Industrial Average futures outperformed, rising 0.18%, while S&P 500 futures edged up 0.07%. The small-cap Russell 2000 contract fell into negative territory, down 0.17%.
Corporate earnings triggered a wide dispersion among individual stocks. Snowflake (NYSE:SNOW) surged 23% in premarket trading after raising its product revenue and margin outlooks, a move that helped offset some of the weakness in tech futures. However, Broadcom (NASDAQ:AVGO) declined 2% after its fourth-quarter revenue guidance of $34.8 billion trailed the average analyst estimate of approximately $35.1 billion. Hewlett Packard Enterprise (NYSE:HPE) dropped 5% despite posting a beat-and-raise quarter, as investors focused on capital spending concerns.
Broadcom CEO Hock Tan emphasized that demand for custom accelerators and networking remains "very strong," and the company forecast AI chip revenue of $21.7 billion for the current quarter. Despite this upbeat commentary, the market's attention shifted to the broader outlook, limiting gains in the Nasdaq contract even as Snowflake's surge provided a bright spot.
The divergence between index futures and individual movers highlighted the fragility of growth stocks, which remain sensitive to interest rate changes. The resurgence in oil prices renewed inflation concerns, adding pressure to bonds during the week. Futures breadth narrowed before dawn, with three of four monitored equity contracts remaining above settlement, but the Russell 2000 lagging.
Looking ahead, investors will focus on a series of economic data releases scheduled for Wednesday. At 08:30 EDT, jobless claims and trade balance figures are due, along with comments from Federal Reserve Governor Christopher Waller. The final S&P Global U.S. services PMI is set for 09:45 EDT, followed by the ISM services index, including prices and employment components, at 10:00 EDT. Friday's August nonfarm payrolls report will be the next major test for markets.
As of 05:52:38 EDT, S&P 500 futures stood at 7,681.75, up 0.07%, while Nasdaq-100 futures were little changed at 29,189.75. The last hour saw a pronounced decline in tech futures, with Nasdaq slipping 0.19 percentage point from its 04:30 gain, and Russell futures dropping 0.17 point.
Traders should note that futures prices are delayed and premarket liquidity remains limited. New developments from Iran or unexpected economic data could quickly shift oil and equity trends ahead of the open.
