Key facts
- U.S. stock futures rose slightly, with S&P 500 and Dow contracts up, while Nasdaq futures lagged.
- SpaceX's debut quarterly earnings report showed nearly doubled revenue and narrowed operating losses.
- SpaceX shares fell 10% premarket amid concerns over high spending and upcoming lock-up expiry.
- AMD forecast quarterly revenue above estimates due to AI demand, but its stock dropped 8.1%.
- Nvidia shares gained 1.9% on plans for SpaceX to use its hardware.
- Kansas City Fed President Jeff Schmid indicated a need for policy tightening to combat inflation.
U.S. stock futures showed a slight increase on Wednesday, with S&P 500 and Dow contracts edging up on hopes for a Middle East peace breakthrough, while Nasdaq futures lagged. SpaceX's first earnings report since going public revealed nearly doubled revenue and narrowed operating losses, driven by its Starlink satellite communications and AI businesses. However, the rocket company's shares slid 10% in premarket trading as executives flagged ongoing spending for its ambitions and the upcoming expiry of the stock's post-IPO lock-up period.
Chipmaker AMD also slipped overnight after its own forecast-beating update, with its stock falling 8.1%. Despite strong AI demand, investors appeared to seek a more robust outlook to justify the stock's significant year-to-date jump. Nvidia shares rose 1.9% as SpaceX plans to use its hardware for data centers.
Earlier in the day, Palantir saw its shares boom nearly 30% after its impressive quarterly results, while Dow stalwart Caterpillar also jumped on its earnings. Overall, the reporting season has been extraordinary in its strength, and the index gains appear to have held overnight. Brent crude prices edged back up above $80 per barrel on Wednesday after Yemen's Iran-aligned Houthi rebels claimed an attack on a Saudi oil tanker in the Red Sea.
Kansas City Fed chief Jeffrey Schmid indicated on Tuesday that the central bank would need to tighten policy to get inflation back to its 2% target. Traders are pricing in a 58.4% chance of a September rate hike by the Federal Reserve.