U.S. stock index futures stabilized on Wednesday evening after a downbeat session on Wall Street, with technology shares taking a hit from weak earnings and regulatory concerns. Investors were also uncertain about the future of interest rates following strong economic data, including an inflation gauge favored by the Federal Reserve. Trading volumes were low and expected to decrease further due to the Thanksgiving holiday.
The S&P 500 futures rose slightly to 6,017.75 points, while the Dow futures steadied at 20,819.50 points by 18:17 ET (23:17 GMT). The Nasdaq futures edged up less than 0.1% to 44,852.0 points.
Tech stocks were under pressure on Wednesday, as disappointing earnings from Dell Technologies Inc and HP Inc raised questions about the impact of artificial intelligence on the sector. NVIDIA Corporation also suffered losses, while Microsoft Corporation faced a 1.2% decline amid reports of an antitrust investigation by the Federal Trade Commission.
Concerns over regulatory challenges for tech giants were heightened after U.S. authorities recommended Alphabet Inc to divest some key assets. Despite strong economic data, Wall Street retreated as doubts about future interest rate cuts lingered. The Fed’s preferred inflation gauge rose as expected in October, signaling inflation above the 2% target.
Overall, the U.S. economy’s strength is expected to give the Fed room to proceed cautiously with rate adjustments, as indicated in the minutes of the November meeting. Wall Street indexes closed lower, but remained near record highs, with trades shifting towards economically sensitive sectors.