Chip rally lifts Nasdaq futures, Dow slips as markets brace for PPI print

US stock futures traded unevenly on Wednesday, with Nasdaq-100 futures up 0.7% driven by a rebound in semiconductor stocks. Nvidia surged over 2% in premarket trading, followed by AMD (up nearly 2%) and Micron Technology (up over 5%), as investors bet on AI-linked demand. Dow Jones futures, however, slipped 0.3%, reflecting broader market caution ahead of key economic data. The rally followed a weak Tuesday session, where chip stocks pulled back after hotter-than-expected consumer inflation data reinforced expectations that the Federal Reserve will delay rate cuts. Now, markets are awaiting April’s producer price index (PPI) report, with economists forecasting a 0.5% month-on-month rise in wholesale inflation and a 0.4% increase in core PPI. Geopolitics also dominated sentiment, as US President Donald Trump held a high-profile summit in China with President Xi Jinping. Trade and artificial intelligence were central to discussions, with Nvidia CEO Jensen Huang joining the delegation alongside executives like Elon Musk and Tim Cook. The move reignited interest in AI-related stocks, though broader market uncertainty persists due to US-Iran tensions and China’s role as Iran’s largest oil buyer. Asia-Pacific markets closed mixed, with gains in Japan, South Korea, China, and India offset by weakness in Australia. Oil prices continued to decline amid geopolitical crosscurrents. Meanwhile, earnings season continued with Cisco, Alibaba, and Birkenstock reporting results, though Alibaba’s shares saw volatility after its AI-focused spending was highlighted. Analysts suggest the AI-driven rally may expand beyond core tech sectors, potentially benefiting energy infrastructure and capital expenditure. Despite near-term volatility, semiconductor stocks remain a key driver of market leadership, reflecting sustained investor appetite for AI-related plays.