US stock futures pointed to a firmer open on Wednesday, with the Dow Jones Industrial Average futures climbing about 145 points, or 0.28%, while S&P 500 futures added 0.21%. Nasdaq 100 futures were little changed, reflecting a cautious tone as investors awaited key inflation data and more earnings from major financial institutions.
The market's mood is a delicate balance. On one hand, ASML's robust quarterly results offered fresh evidence that demand for AI infrastructure remains strong. On the other, Brent crude holding above $105 and the 10-year Treasury yield near 5.2% keep growth stocks sensitive to any upside surprise in inflation.
CPI report could set the tone
September consumer prices are expected to rise 0.6% from August and 3.6% year over year, with core CPI projected to increase 0.2% month over month. The 10-year Treasury yield, around a two-week low but still elevated, makes equities vulnerable to a hotter-than-expected reading. BMO Capital Markets strategist Ian Lyngen noted that a material beat could revive concerns about further Federal Reserve tightening.
Oil above $105 adds to inflation worries
Brent crude remained above $105 as attacks on commercial shipping near the Strait of Hormuz reignited supply concerns. Two vessels were struck this week, and the Financial Times reported the region is experiencing its most intense wave of shipping attacks since the conflict began. Higher crude prices support energy shares but threaten margins and inflation expectations, making oil a key component of the CPI reaction.
ASML bolsters AI optimism
ASML reported third-quarter net profit of €4.96 billion on sales of €11.66 billion and raised its full-year revenue forecast to €44 billion-€45 billion. More importantly for chip sentiment, the company said demand for advanced lithography equipment could exceed capacity through 2028, with customers discussing orders extending into 2029 and 2030. This suggests sustained AI infrastructure spending despite this week's semiconductor sell-off.
Bank earnings and regulatory scrutiny
Bank of America and Morgan Stanley are scheduled to report before the bell, following a mixed start to big-bank earnings on Tuesday. Bank of America shares were under pressure after regulators imposed a roughly $1.2 billion fine over weaknesses in financial-crime monitoring. BlackRock provided a brighter spot, with adjusted net income rising 37% to $2.62 billion and assets under management reaching $15.49 trillion, sending its shares about 3% higher premarket.
Investors differentiate AI winners and laggards
Micron and Intel were lower premarket, while Nvidia was roughly flat as investors weighed the threat from China's CXMT to memory-industry pricing. Liquidia was a standout, jumping more than 40% after settling six lawsuits with United Therapeutics and securing continued sales of Yutrepia.
The market's advance remains narrow rather than decisively bullish. ASML argues that AI demand is intact, but the CPI print and 5% Treasury yields will ultimately determine what investors are willing to pay for that growth.
This article is for informational purposes only and does not constitute financial advice.
