- Nasdaq-100 futures rose 1.62%, signaling tech stock rebound on renewed AI interest
- Dow Jones futures fell 0.05%, indicating limited broader market recovery
- Tech stocks fell earlier due to Nvidia's decline and high US inflation data
Wall Street's technology stocks are showing signs of a rebound, but the broader market is yet to join the rally. Nasdaq-100 futures climbed sharply on Wednesday, while Dow Jones futures remained largely unchanged, pointing to a recovery driven largely by renewed interest in artificial intelligence stocks.
Nasdaq-100 futures for December 2026 were trading at 28,287.25, up 452 points, or 1.62%. Dow Jones futures stood at 52,288, down 27 points, or 0.05%.
The divergence comes after a bruising session on Wall Street, where technology stocks came under pressure from a combination of Nvidia's decline and hotter-than-expected US inflation data.
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So, what is driving the Nasdaq rebound, and what are investors pricing in?
1. Is The AI Trade Losing Steam? Not Quite
The latest earnings from CoreWeave have offered investors a reason to revisit the artificial intelligence trade. The company's third-quarter revenue jumped 168%, beating analyst expectations and providing fresh evidence that demand for AI computing infrastructure remains strong.
The results helped lift sentiment across global technology stocks. South Korea's Kospi rose 2.6%, with SK Hynix gaining 5.36% and Samsung Electronics advancing 3.57%. European chipmakers also traded higher, with Infineon climbing 6.3% and ASMI gaining 5.5%.
The recovery suggests investors may not be ready to abandon the AI trade despite recent volatility.
2. Has The Nvidia Selloff Gone Too Far?
Nvidia has been at the centre of the recent technology-led decline. The chipmaker fell 5.5% in Tuesday's session, extending its losses for a second consecutive day.
The two-day slide pushed its market capitalisation down to around $4.07 trillion, its lowest level since late March. The sharp correction has raised questions about whether investors have become too pessimistic about the world's most valuable AI chipmaker.
A rebound in technology futures suggests some investors may be looking for opportunities after the recent selling, although it remains to be seen whether Nvidia can regain its momentum.
3. Trump's Iran Signals Ease Geopolitical Concerns
Geopolitical developments have also helped improve sentiment. Futures moved higher after US President Donald Trump signalled that further military action against Iran was less likely, easing concerns about an escalation in the Middle East.
Any reduction in geopolitical risk can improve investors' willingness to take exposure to equities, particularly growth and technology stocks. However, the recovery faces another challenge at home.
US consumer prices rose 0.4% month-on-month in October, above expectations, strengthening bets on a December Federal Reserve rate hike. According to CME Group's FedWatch tool, the probability of a quarter-point increase rose to around 90%.
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