Nasdaq Futures Rise as ASML's Orders Surpass Estimates
Semiconductor-related stocks surged in premarket trading on Wednesday, driving Nasdaq futures higher. Dutch chip equipment manufacturer ASML reported exceptional fourth-quarter orders that exceeded analyst expectations.
Focus on Company Results and Fed's Rate Decision
Investors will closely monitor quarterly earnings reports from General Dynamics, UPS, and T-Mobile US before the opening bell. After the market closes, the focus shifts to "Magnificent 7" members Microsoft, Meta (parent of Facebook), and Tesla, along with Apple's upcoming earnings release later this week.
The Federal Reserve is poised to announce its first interest rate decision of the year at 2 p.m. ET. While markets anticipate a steady rate, analysts will analyze the Fed's tone and guidance.
Inflation Concerns Amidst Potential Tariffs
Concerns over inflation linger due to President Donald Trump's proposed tariffs. Inflationary pressures could hinder Fed rate cuts, especially in light of the December personal consumption expenditures (PCE) price index, scheduled to be released on Friday.
Semiconductor Sector Performs Strongly
Shares of semiconductor companies and related equipment makers climbed in premarket trading. KLA Corp, Applied Materials, Lam Research, and Micron Technology all gained approximately 4%.
Market Performance
At 04:41 a.m. ET, Dow E-minis were slightly lower (0.14%), while S&P 500 E-minis edged higher (0.02%) and Nasdaq 100 E-minis surged (0.32%).
Other Notable Stock Movements
Cybersecurity firm F5 jumped 15.4% after exceeding first-quarter revenue estimates and forecasting strong second-quarter revenue. Chipmaker Qorvo declined 4.1% due to lower third-quarter revenue.