Overview
Futures tied to the major U.S. equity benchmarks were trading higher early Wednesday as market participants awaited the release of minutes from the Federal Reserve’s January policy meeting and continued to work through a new tranche of corporate earnings reports. The session also featured a sharp market reaction to guidance from a leading cybersecurity provider and a notable reshuffle of holdings at Berkshire Hathaway during what the filing described as Warren Buffett’s final quarter in charge.
Futures and recent price action
By 02:43 ET (07:43 GMT), futures showed a modest positive bias: the Dow futures contract had risen by 55 points, or 0.1%, S&P 500 futures were up 12 points, or 0.2%, while Nasdaq 100 futures were down 35 points, or 0.1%.
Stocks on Wall Street had closed higher in the prior session, supported in part by a partial recovery among technology names that had been under pressure. Gains in firms including Nvidia and Apple helped offset declines in Microsoft and Oracle and pushed the S&P 500 information technology sector about 0.5% higher on the day.
Despite the bounce, investors remain attentive to ongoing volatility across the tech complex. Traders have expressed concern that a rapid rollout of advanced artificial intelligence tools could disrupt business models across a broad swath of sectors, including software, financial services, real estate and logistics. At the same time, there is unease about the timing for when heavy spending on AI data centers will begin to translate into meaningful financial returns for the companies making those investments, a dynamic that could cloud near-term prospects for large-cap technology names with significant capital commitments to AI infrastructure.
Analysts at Vital Knowledge summarized investor sentiment succinctly, saying, "Tech investors remain traumatized by the volatility of the last several weeks and the shifting AI conversation, although there is growing anticipation for Nvidia’s earnings report next week (which most people expect will be strong) while software is still firmly in the penalty box despite the extremely oversold price action."
Fed minutes and policy backdrop
Minutes from the Federal Reserve’s January meeting, due for release on Wednesday, were expected to provide additional texture on the central bank’s thinking and the path for monetary policy. At that meeting, policymakers opted to hold interest rates in the 3.5% to 3.75% range.
The January decision was not unanimous: the meeting record shows two Fed governors, Stephen Miran and Christopher Waller, dissented from the move to pause on rate cuts. Policymakers cited indicators of stabilizing employment conditions alongside inflation that remains above the Fed’s target as reasons for maintaining the current stance.
Markets broadly anticipate that officials will keep policy rates within the current range at least through June, consistent with a wait-and-see posture as the Fed gauges how employment and price trends evolve.
Separately, the leadership transition at the central bank is a topic of market focus. Fed Chair Jerome Powell is approaching the end of his tenure and former Fed Governor Kevin Warsh has been nominated by the President as Powell’s successor. Investors are parsing how Warsh’s approach to rates may differ from Powell’s as part of expectations-setting for future monetary policy.
Energy markets
Oil prices rose modestly after a sharp drop the previous session, as reports of progress in talks between the U.S. and Iran eased some near-term supply disruption concerns.
As of 02:58 ET, Brent futures for April delivery were trading at $67.61 per barrel, up about 0.3%, while West Texas Intermediate futures rose roughly 0.2% to $62.40 per barrel. Both contracts had fallen nearly 2% and 1% respectively in the prior session.
Participants in the talks reportedly reached an understanding on key guiding principles during discussions in Switzerland, raising the possibility of an eventual agreement that could bring additional Iranian barrels to global markets. Iran’s foreign minister cautioned that the understanding does not mean a deal is imminent. The talks are watched closely given Iran’s status as a major producer and its geographic position along the Strait of Hormuz, a critical shipping chokepoint for global oil flows.
Palo Alto Networks: beats on the quarter, guidance disappoints
Palo Alto Networks shares fell sharply in extended trading after the Santa Clara, California-based cybersecurity company reported results for its fiscal second quarter that beat estimates on both the top and bottom lines but issued profit guidance that disappointed investors.
The company said it earned $1.03 per share on revenue of $2.59 billion for the quarter. Analysts had been modeling $0.94 in earnings per share on revenue of $2.58 billion.
Despite the quarterly outperformance, Palo Alto trimmed its fiscal 2026 full-year earnings-per-share guidance to a range of $3.65 to $3.70, down from a prior outlook of $3.80 to $3.90. The consensus estimate stood at $3.87. The company raised its full-year revenue outlook to $11.28 billion to $11.31 billion from a prior range of $10.50 billion to $10.54 billion, which was above expectations, but the EPS revision weighed on investor sentiment.
Palo Alto provides a suite of cybersecurity offerings, including AI-enabled platforms for network and cloud protection, firewalls, threat intelligence, zero-trust security and secure access service edge solutions. The stock reaction illustrated how market participants are sensitive not just to current performance but to management’s forward-looking profit expectations, particularly in a space where companies are investing heavily in product innovation and scaling for larger, AI-driven security workloads.
Berkshire Hathaway reshapes positions
Regulatory filings revealed that Berkshire Hathaway pared back holdings in Apple and Bank of America during the quarter ended December 31, while adding a new stake in the New York Times. The moves came during what the filing described as Warren Buffett’s final quarter as chief executive.
Specifically, Berkshire sold roughly 10.3 million shares of Apple during the quarter, marking the third consecutive quarter of reductions in its position in the iPhone maker. The conglomerate also trimmed its stake in Bank of America by about 50.8 million shares.
Conversely, Berkshire acquired some 5.1 million shares of the New York Times, increasing its exposure to a business that has been broadening beyond traditional journalism into subscription-driven digital offerings such as games and recipe content.
Buffett, aged 95, stepped down as Berkshire’s CEO at the end of 2025, and Greg Abel took over as his chosen successor. The filing noted that Abel will issue his first shareholder letter later this month when Berkshire reports its annual results.
Implications and market focus
Through the day, market attention was split across several themes. Traders were parsing the Fed minutes for any hint of shifting policy preferences, weighing quarterly corporate results and guidance for signs of margin and demand trends, and monitoring geopolitical negotiations that could affect commodity flows. Technology and financials appeared particularly sensitive to the latest headlines, while energy markets responded to developments in diplomatic talks.
For investors and analysts focused on unit economics and margin structure, the Palo Alto guidance shift is a reminder that improving revenue expectations do not always translate into higher profit projections, and that heavy investment cycles - particularly related to AI capacity and security infrastructure - can complicate near-term earnings narratives.
Bottom line
U.S. futures nudged higher as markets prepared for the Fed’s January minutes and continued to absorb corporate earnings and guidance. A mixed technology landscape, incremental progress in oil-related diplomacy and notable portfolio adjustments by Berkshire Hathaway provided multiple threads for investors to monitor as the session unfolds.