US stock futures rose on Wednesday as stronger results from AI-linked companies helped steady sentiment after a bruising sell-off in technology shares.
Nasdaq 100 futures gained about 160 points or 0.6%, S&P 500 futures added 0.19% and Dow futures were little changed.
SpaceX reported a surge in quarterly revenue, while Super Micro Computer sharply raised its sales outlook.
But Netflix slid after reducing its advertising forecast, Brent crude climbed back above $110 a barrel and US housing data exposed the strain from high borrowing costs.
5 things to know before Wall Street opens
1. Meta and Tesla face a crucial earnings test
Meta and Tesla report after Wednesday’s close, alongside IBM and semiconductor-equipment maker Lam Research.
Analysts expect Meta revenue of about $63.3 billion, with attention on whether heavy AI spending is boosting advertising returns.
Tesla faces questions about vehicle margins, robotaxis and its Optimus humanoid robot programme.
Morgan Stanley analyst Brian Nowak has cautioned that consumer adoption of new AI services takes time.
After the sector’s sell-off, both companies must demonstrate how spending translates into sustainable profits.
2. SpaceX and Supermicro revive AI optimism
SpaceX shares surged premarket after reporting $14.6 billion in quarterly revenue, up 161%, and net profit of $4.4 billion.
Its AI computing business and Starlink helped drive growth.
Super Micro Computer separately raised its preliminary quarterly revenue forecast to $18.5 billion–$19.5 billion from $14.5 billion–$15.5 billion, citing stronger demand for AI platforms.
Its gross-margin outlook also improved, lifting semiconductor shares.
Dan Niles of Niles Investment Management argued that the results could trigger a near-term AI rally despite unresolved financing concerns.
3. Netflix tumbles 6% as advertising outlook disappoints
Netflix shares fell roughly 6% before the bell after the streamer lowered its 2026 advertising revenue projection to $2.7 billion from about $3 billion.
Quarterly revenue rose 12% to $12.87 billion, while earnings of 87 cents a share beat estimates. Management attributed the revised advertising outlook to slower deployment of advertising products.
Fourth-quarter revenue guidance of about $13.4 billion also fell short of expectations.
The reaction suggests investors are increasingly unwilling to overlook weaker forward guidance, even when quarterly profits exceed forecasts.
4. Oil rises above $110 as Gulf supply risks persist
Brent rose about 1.5% to $110.38 a barrel in Asian trading as threats to Middle Eastern shipping overshadowed hopes of renewed diplomacy with Iran.
Industry estimates also showed US crude inventories falling 4.9 million barrels last week, although official figures remain pending.
Higher fuel prices threaten to keep inflation elevated and complicate the Federal Reserve’s interest-rate outlook.
5. US pending home sales plunge 7.3% to a record low
US pending home sales fell 7.3% in September, against forecasts for a 0.5% decline.
The National Association of Realtors reported that its index dropped to 66, the lowest since records began in 2001.
Housing starts also declined 5.2% to an annualised 1.221 million units. NAR chief economist Lawrence Yun attributed the weakness to rapidly rising mortgage rates, with the 30-year rate recently averaging 7.4%.
The housing downturn provides a counterpoint to upbeat technology earnings: higher financing costs are already weighing on household demand.
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