Wall Street poised to open lower even as AI and data center companies soar on still-hot demand

Wall Street futures pointed to a downtrend at the opening bell on Tuesday, with the Dow Jones Industrial Average futures dropping 0.4%, S&P 500 futures slipping 0.2%, and Nasdaq futures edging down 0.1%. Despite the broader market decline, select technology companies saw sharp gains driven by AI and data center demand. Marvell Technologies, a designer of data center chips, jumped nearly 20% after Nvidia CEO Jensen Huang suggested it could become the next $1 trillion company. Generac rose 9.5% following a deal to supply backup power generators for an undisclosed data center infrastructure project. Hewlett Packard Enterprise (HPE) shares climbed over 30% after reporting record second-quarter revenue fueled by high-powered server demand. In energy markets, U.S. crude oil lost $1.26 to settle at $90.90 per barrel, while Brent crude slipped the same amount to $93.72, though both remain well above pre-war levels near $70. Oil price pressures persist due to potential disruptions in the Strait of Hormuz, where tensions between the U.S. and Iran could impact Persian Gulf oil deliveries and inflation. Japan, which imports nearly all its oil, has so far mitigated price effects through strategic reserve releases, but analysts warn of broader fuel shortages spreading across Asia and Europe. Stephen Innes, an analyst, noted refiners are cutting production of gasoline, diesel, jet fuel, LPG, and naphtha due to crude shortages, tightening supply chains globally. European markets showed mixed movements at midday, with France’s CAC 40 up 0.7%, Germany’s DAX rising 0.8%, and Britain’s FTSE 100 gaining 0.2%. Asian markets closed with varied results: Japan’s Nikkei 225 fell 0.3%, South Korea’s Kospi rose 0.2%, Hong Kong’s Hang Seng surged 2.5%, and Shanghai’s Composite climbed 0.4%. Australia’s S&P/ASX 200 dipped slightly below 0.1%.