U.S. stock futures showed mixed signals on Wednesday as tech-related gains contrasted with broad losses, while energy price surges heightened inflation concerns ahead of key central bank decisions. Dow Jones futures rose 0.2%, while Nasdaq 100 futures fell 0.1%, reflecting cautious trading midweek.
Inflation jitters, stoked by rising oil prices amid escalating tensions in the Middle East, reinforced expectations of a Federal Reserve rate hike in September. "The new reality seems to be that the Fed will ultimately raise rates in September," said Chris Turner, head of FX strategy at ING. The central bank’s latest communications, including remarks from Governor Kevin Warsh, underscored persistent inflation pressures despite signs of economic resilience.
Among individual stocks, Dell surged 9.2% in pre-market trading after reporting strong quarterly results and raising its full-year guidance. The company cited robust demand for AI servers as a key driver, with Bank of America upgrading its price target to $600 from $500 and maintaining a buy rating. Morgan Stanley’s Erik Woodring highlighted Dell’s operational strength but noted valuation as a lingering risk factor.
Cybersecurity firm Palo Alto Networks posted a 1.4% pre-market decline despite beating earnings expectations, as investors took profits after a near-doubling of its share price since the start of the year. GitLab soared 24% after raising its annual revenue guidance and posting a 21% year-over-year revenue increase to $286.3 million for the second quarter. The software development platform also reported a net dollar retention rate of 117% and a 40% rise in net annual recurring revenue.
Semiconductor stocks were a mixed bag. Broadcom rose 0.4% ahead of its post-market earnings release, while Credo Technology slumped 10% despite a 114% year-over-year revenue jump to $479 million and adjusted EPS growth from $0.52 to $1.20. The decline reflected margin compression, with GAAP gross margins narrowing to 64.5% from 67.4% and operating expenses surging to $188.4 million. MongoDB fell 15% in pre-market trading despite beating revenue and earnings expectations, as rising operating costs tied to AI infrastructure weighed on sentiment. The company raised its full-year revenue guidance to $2.99–3.03 billion and adjusted EPS to $6.39–6.58, while projecting Q3 revenue of $756–761 million.
In Europe, the Swiss Market Index (SMI) pared earlier losses to trade 0.4% lower at 14,271 points, with the SMIM and SPI also declining 0.4% to 3,081 and 20,077 points, respectively. Defensive stocks such as Roche (+1.0%) and Swiss Life (+0.4%) led gains, while Novartis (-0.4%) lagged after a strong prior session. Nestlé (-0.9%) weighed on the index despite a $1.0 billion divestment of its Mainstream Vitamin business to Yellow Wood Partners, a move analysts described as closing a chapter of value destruction.
Construction-related stocks Geberit (-1.3%) and Sika (-1.3%) were among the day’s biggest decliners, alongside Partners Group (-1.9%). In contrast, tech names such as VAT Group (+3.2%), Comet (+3.1%), and Inficon (+0.9%) advanced on UBS upgrades and strong Dell results. Broader market sentiment remained fragile as investors awaited central bank decisions from the European Central Bank and Federal Reserve over the next two weeks.
