U.S. stock index futures were higher on Wednesday evening, building on a rally in earlier trade as investors weighed encouraging economic reports and corporate results against sustained geopolitical tensions involving Iran.
Market indicators
By 19:42 ET (00:42 GMT), S&P 500 Futures were up 0.3% at 6,898.25 points. Nasdaq 100 Futures rose 0.4% to 25,223.75 points, and Dow Jones Futures gained 0.1% to 48,861.0 points. These moves reflected continued buying pressure after steep losses earlier in the week related to conflict-driven market shocks.
Broadcom posts strong quarter, drives aftermarket gains
Broadcom Inc (NASDAQ:AVGO) was a notable aftermarket winner, gaining more than 5% after reporting fiscal first quarter results that beat consensus on both revenue and earnings. Management also provided a second quarter revenue forecast of $22 billion, above a $20.4 billion consensus figure, and said nearly half of the forecast would come from sales of its advanced artificial intelligence chips.
This upbeat outlook from a major AI-focused chipmaker helped revive confidence that the AI-related semiconductor demand remains an active market theme, reinforcing the view that chipmakers stand to benefit from growth in the sector.
Peers in the chip space were modestly higher in extended trading. Rival NVIDIA Corporation (NASDAQ:NVDA) rose 0.3% in the aftermarket. NVIDIA’s chief executive, Jensen Huang, characterized AI-fueled chip demand as "higher than very high."
In enterprise software, CrowdStrike Holdings Inc (NASDAQ:CRWD) climbed more than 4% after reporting quarterly results that exceeded expectations, a development that helped ease investor concerns about AI-related disruption in the software sector.
Economic data and oil price behavior bolster markets
Market participants cited several pieces of data that supported the rally. Private payrolls for February came in stronger than expected, indicating continued labor market expansion. The Institute for Supply Management's services purchasing managers index rose to its highest level in more than three years in February, signaling robust domestic demand. The Federal Reserve's Beige Book also portrayed an upbeat picture of economic activity.
These readings arrived ahead of other scheduled labor reports, including Challenger job cuts data due on Thursday and the more closely watched nonfarm payrolls report on Friday, which investors view as critical for insight into the path of interest rates.
Oil price movement also played a role in market sentiment. Energy prices trimmed much of their intraday gains after President Donald Trump said he would offer risk insurance to maritime trade transiting the Strait of Hormuz and raised the prospect of naval intervention. Still, oil remained close to multi-month highs after earlier sharp rallies prompted by weekend strikes involving the U.S. and Israel and subsequent retaliatory actions by Iran.
Geopolitical tensions remain a persistent risk
Despite the midweek rebound, the conflict in the Middle East continued to cast a shadow over markets. The outbreak of hostilities had produced substantial losses in U.S. equities earlier in the week, and officials from the United States, Israel, and Iran signaled few plans to de-escalate during the week. Iran denied reports that its intelligence ministry had contacted U.S. officials to discuss ending the war.
Investors will watch whether recent stabilization in oil markets holds and whether incoming economic reports provide further support for risk assets in the face of unresolved geopolitical uncertainty.
Market performance snapshot
- The S&P 500 advanced 0.8% on Wednesday.
- The NASDAQ Composite climbed 1.3%.
- The Dow Jones Industrial Average rose 0.5%.
These gains, together with stronger corporate reports and economic prints, helped lift futures in evening trade, though market participants remain attentive to developments in energy markets and incoming labor data that could alter the near-term outlook.