Nasdaq 100 futures advanced on Wednesday, October 28, after record third-quarter earnings from SK Hynix triggered a global rally in artificial intelligence (AI) semiconductor stocks. However, investors remained cautious ahead of the Federal Reserve’s interest rate decision and earnings reports from major technology companies, including Microsoft, Alphabet and Amazon.
At 06:06 ET (10:06 GMT), Nasdaq 100 futures gained 0.4%, while S&P 500 futures rose 0.1%. Dow Jones futures declined 0.2%, highlighting mixed sentiment across US equity markets.
SK Hynix shares surged over 10% in South Korea after reporting record third-quarter earnings and announcing plans to return 100 trillion won ($75.5 billion) to shareholders in 2026. Strong AI-driven demand for high-bandwidth memory is expected to keep supply tight through at least 2030.
The rally spread across the sector, with Samsung Electronics gaining around 9% and Micron Technology rising more than 3% in premarket trading. Semiconductor strength lifted Nasdaq futures, boosting optimism around AI growth. However, traders should assess whether earnings can justify elevated valuations or whether the positive outlook is already priced in.
Investors are also preparing for quarterly results from from Microsoft and Alphabet to assess whether heavy AI and cloud investments are delivering sufficient returns. Revenue growth, capital expenditure and forward guidance will be key, while Amazon reports on Thursday. Strong results could support tech stocks, but disappointing guidance may trigger profit-taking.
Fed Decision in Focus
The Federal Reserve is widely expected to hold interest rates steady, leaving traders focused on its policy outlook amid persistent inflation. Markets are pricing in roughly a three-in-four chance of a December rate hike. The decision and Chair Kevin Warsh’s press conference could influence tech valuations, Treasury yields and the US dollar. Thursday’s US third-quarter GDP and September PCE inflation reports could reshape rate expectations. Strong growth alongside persistent inflation may reinforce a tighter policy outlook, while softer inflation could support risk appetite.
AI earnings, Fed signals and economic data could trigger sharp market moves. Traders should monitor Nasdaq futures, semiconductor stocks, Treasury yields and the US dollar, while managing exposure to potential reversals. The key question is whether AI-driven growth can justify elevated tech valuations in a restrictive rate environment.
