Tech Surge Boosts Futures as Investors Eye Fed Decision and Earnings

U.S. stock index futures climbed owing to a rise in chip stocks, amidst anticipation for the Federal Reserve's rate decisions and earnings announcements from Big Tech firms. Nvidia, Intel, Micron, and Microchip Technology saw significant gains. Eager eyes are on 'The Magnificent Seven' earnings as tech optimism remains robust.

U.S. stock index futures saw a rise on Wednesday as gains in chip stocks fueled market optimism, with investors gearing up for the Federal Reserve rate decision and Big Tech's quarterly earnings results. The Fed is widely expected to keep rates unchanged between 3.5%–3.75%, with traders eagerly awaiting clues on future rate paths from the Fed's statement and Chair Jerome Powell's remarks.

Premarket trades showed Nvidia climbing 1.7%, Intel up by 5.5%, while Micron and Microchip Technology each gained over 4%. A key Nvidia supplier, SK Hynix, reported record profits, and ASML received its highest-ever fourth-quarter orders, leading to a tech rally spanning from Europe to Asia. Meanwhile, the S&P 500 achieved a record high, drawing the focus back on earnings after previous volatility spurred by President Trump's Greenland acquisition remarks.

Louise Dudley, a portfolio manager for global equities at Federated Hermes, noted an increase in optimism as earnings season unfolds, with tech's performance being closely monitored. At 07:12 a.m. ET, Dow E-minis were marginally down, while S&P 500 and Nasdaq 100 E-minis showed gains. The U.S. central bank navigates policy amidst a politically charged atmosphere, following a Justice Department probe involving Powell and potential announcements of his successor by Trump.

(With inputs from agencies.)