After a challenging day for tech firms, U.S. stock futures appeared stable on Wednesday. Market watchers are particularly interested in Micron’s upcoming results, which could offer insights into AI demand.
Futures for the Nasdaq 100 rose by 0.6%, while S&P 500 futures ticked up 0.2%. This comes after both indexes experienced significant declines on Tuesday, primarily driven by falling AI-stock values. Dow Jones Industrial Average futures remained nearly unchanged, given its limited exposure to high-tech stocks.
Apprehensions about potential interest rate increases, alongside lofty valuations and extensive spending, have led many investors to take profits in rising AI stocks.
Micron is set to announce its results after market close on Wednesday, and investors will be closely monitoring the report to gauge Wall Street’s confidence in AI. Although Micron’s stock surged over 250% this year, it dropped 13% on Tuesday, reflecting broader tech sector losses.
On a different note, Cerebras released its first financial results post-IPO in May, but its stock fell over 10% in premarket trading. This dip was attributed to expectations regarding weaker profit margins compared to competitors like Nvidia.
In the realm of international relations, uncertainty continues to surround U.S.-Iran negotiations. While President Trump promised to maintain free passage in the Strait of Hormuz, discussions between Iran and Oman about imposing fees on vessels traversing this vital shipping route have commenced.
Meanwhile, in its after-hours report, FedEx highlighted the impact of declining operating profit margins, driven by rising transportation costs and shifts in trade policy. Shares in FedEx, often seen as an economic bellwether, fell by 7% before the market opened.
Big Tech’s $2.7 trillion AI bill comes due
The Magnificent Seven, which includes companies like Broadcom and Oracle, suffered a combined loss of about $2.7 trillion in market capitalization in June. This comes as investor scrutiny increases regarding companies investing heavily in AI development, per an analysis conducted by Yahoo Finance.
Jared Blikre from Yahoo Finance elaborated in today’s Chart of the Day. Initially, investor skepticism focused on the Magnificent Seven, especially Broadcom and Oracle, both crucial players in AI infrastructure, which are currently facing pressure.
The reset is impacting both sides of the AI market. Nvidia and Broadcom are significantly tied to hardware, while firms like Microsoft, Alphabet, Amazon, Meta, and Oracle are linked to spending trends. Apple and Tesla remain key growth stocks that are closely associated with AI.
SK Hynix seeks $29 billion in US initial public offering to fund AI boom
According to Bloomberg, SK Hynix is planning to raise about $29.4 billion by issuing depositary receipts on the Nasdaq. Trading is anticipated to start on July 10, as stated by the company. Currently, SK Hynix holds 57% of the global market share in revenue as of Q4 2025, although it trades at a discount when compared to competitors such as Micron and Samsung.
This year, shares of SK Hynix, which is listed in Seoul, have surged over 300%, driven by an insatiable demand for memory chips. A U.S. listing could attract new investors and help close its valuation gap with rivals.
Alphabet replaces Verizon as part of Dow Jones
In a notable change, Alphabet is set to join the Dow Jones Industrial Average on June 29, taking the place of Verizon. This move is intended to better represent growing segments of the United States economy. According to S&P Dow Jones Indices, Alphabet’s inclusion will enhance the Dow’s exposure to areas like AI, cloud computing, health tech, and digital advertising.
The release noted that Alphabet’s strong market capitalization and broad range of services position it as a leader in telecommunications services. In contrast, Verizon’s stock performance has been underwhelming, as its lower-price stocks contribute little to the index, even with a 14% increase this year.
Market decline causes liquidity decline, gold sinks below $4,100
As reported by Bloomberg, the recent tech-led selloff on Wall Street has resulted in investors offloading gold to offset losses across other investments. Spot gold dropped 1.7% in premarket trading to below $4,100 per ounce, marking a two-week low. Factors such as a rally in U.S. Treasuries and a stronger dollar have made gold more expensive for many buyers.
Although gold is typically viewed as a safe haven, it tends to decline during significant market downturns. With worries about an AI stock rally potentially overextending itself, Asian markets are poised for further losses. Ongoing inflation risks contribute to speculation over possible interest rate hikes by the Federal Reserve, which adds to the downward pressure on gold as rising borrowing costs challenge low-yielding assets.
