Dow Jones futures rise on global calm and AI profits
US index futures surged following President Trump’s indication of a diminished probability of additional military engagement with Iran. CoreWeave’s impressive quarterly performance and Anthropic’s anticipated entry have rekindled optimism throughout the AI sector. The pre-market rebound follows Tuesday’s losses, which were driven by increased expectations for Federal Reserve rate hikes linked to the Consumer Price Index. Dow Jones futures increase by 0.16%, trading approximately at 52,400 during the European hours on Wednesday. Meanwhile, S&P 500 futures advance 0.60% to trade around 7,590, while Nasdaq 100 futures rise 1.45% to trade around 28,230.
US stock futures experienced a notable increase as market participants displayed a renewed appetite for risk, influenced by indications of diminishing geopolitical tensions. US President Donald Trump suggested that additional military action against Iran might not be necessary, a position endorsed by US Secretary of State Marco Rubio during the G7 summit. Simultaneously, Congressional Democrats are strategising to utilise the impending government funding deadline as a means to guide the administration toward a diplomatic resolution. Market sentiment strengthened following robust financial results from AI computing provider CoreWeave, which reignited interest in the wider artificial intelligence sector.
CoreWeave shares surged nearly 8% in after-hours trading following the company’s quarterly earnings report, which exceeded expectations and raised guidance, highlighting robust demand for AI infrastructure. Confidence in the sector was further bolstered by reports indicating that Anthropic might make its market debut as early as next week, with aspirations to raise up to $90 billion at a diluted valuation approaching $1.4 trillion. This rebound follows a lacklustre session on Wall Street on Tuesday, characterised by a decline in the Dow Jones of 0.35%, a decrease in the S&P 500 of 0.38%, and a drop in the Nasdaq Composite of 0.74%.
US equities faced downward pressure following the recent CPI release, which reinforced expectations for a Federal Reserve rate hike in December. The CME FedWatch tool indicates an 85% probability of such an increase occurring in December. Societe Generale’s Jan Groen highlights that the latest US inflation data came in firmer than anticipated, noting that “October core CPI surprised to the upside at 0.3% m/m.” He points out that this stronger core reading underscores lingering underlying price pressures, even as markets look ahead to the corresponding PCE data for a fuller assessment of the inflation trend.
