U.S. stock futures declined early Wednesday, with Nasdaq futures falling 0.6%, S&P 500 futures down 0.4%, Dow futures down 0.2%, and Russell 2000 futures declining 0.5% as of 4:00 a.m. ET. The drop followed overnight retaliatory military strikes ordered by President Donald Trump against Iranian air defenses and preceded the release of May Consumer Price Index (CPI) data scheduled for 8:30 am ET and Oracle's fiscal Q4 earnings report after the closing bell. The cautious market tone reflected a rotation away from high-flying AI and semiconductor stocks this week amid fresh geopolitical uncertainty in the Middle East.
Futures Decline Follows Overnight U.S. Strikes Against Iran
Markets absorbed the impact of overnight retaliatory military strikes ordered by President Donald Trump against Iranian air defenses. Retail sentiment for the SPDR S&P 500 ETF (SPY) moved to 'neutral' from 'bullish' territory a day ago, while the Invesco QQQ Trust (QQQ) ETF remained 'bullish'.
Investors Await May CPI Data and Oracle Earnings
All eyes turned to the U.S. May Consumer Price Index (CPI) report scheduled for release at 8:30 am ET on Wednesday. Some analysts warned the print could challenge three-year highs due to sticky food and energy costs. Oracle's highly anticipated fiscal Q4 earnings release is set for after the closing bell, with investors watching whether its cloud infrastructure growth can justify heavy AI capital spending required to compete with hyperscalers.
Super Micro Computer Announces $7 Billion Financing Package
Super Micro Computer Inc (SMCI) stock fell 10% in early premarket trade after the company announced an aggressive $7 billion financing package to fund its massive AI infrastructure order backlog.
Taiwan Semiconductor Reports 30% Year-Over-Year Surge in May Sales
Taiwan Semiconductor (TSM) stock fell 2% in early premarket trade. The foundry giant reported a 30% year-over-year surge in May sales, reinforcing demand for hardware built for Nvidia and AMD. However, concerns around a potential AI chip regulation rattled investors.
YY Group Holdings Unveils Nvidia-Powered Humanoid Robot Program
YY Group Holdings (YYGH) soared over 55% in premarket trade after it unveiled an Nvidia-powered humanoid robot program for service operations, making it one of the top pre-market gainers.
Other Stock Movements
Coreweave Inc (CRWV) extended its recent slide following reports that its three co-founders and major investor Magnetar Financial unloaded billions in shares since the post-IPO lockup expired. Ahead of its record-shattering IPO this week, reports indicated that demand for SpaceX (SPACZZX) topped $250 billion, nearly 4x oversubscribed. The company said it aims to test space-based AI data centers by late 2027. Other space stocks such as AST Spacemobile (ASTS), Intuitive Machines (LUNR), and Rocket Lab (RKLB) were under mild pressure in early trade.
Eli Lilly (LLY) received a boost after the FDA approved a new maintenance dosing for its atopic dermatitis drug, Ebglyss. Summit Therapeutics (SMMT) fell nearly 6% in early premarket trade following an equity offering. Robinhood Markets (HOOD) gained attention after CEO Vlad Tenev announced the company secured a green light to underwrite IPOs. A regulatory filing showed that director Meyer Malka purchased $20.2 million in common stock. Starbucks (SBUX) gained retail attention on reports that the coffee chain is exploring alternatives for its Japanese business unit, including a potential stake sale.
Economic Calendar and Earnings Lineup for Wednesday
On the economic front, investors tracked the release of May CPI data at 8:30 am ET. Oil traders monitored weekly EIA crude oil inventory data against the backdrop of renewed tensions in the Middle East. On earnings radar, quarterly reports from Chewy (CHWY), Core & Main (CNM), J.Jill (JILL), and Cheetah Mobile (CMCM) were scheduled before the bell. Apart from Oracle, RH (RH), Stitch Fix (SFIX), and Globus Maritime (GLBS) were among the other names reporting after market close.
FAQ
Why did Nasdaq futures fall on Wednesday?
Nasdaq futures fell 0.6% as of 4:00 a.m. ET on Wednesday following overnight retaliatory military strikes ordered by President Donald Trump against Iranian air defenses and ahead of the May Consumer Price Index (CPI) data release scheduled for 8:30 am ET and Oracle's fiscal Q4 earnings report after the closing bell.
What did Super Micro Computer announce on Wednesday?
Super Micro Computer Inc (SMCI) announced an aggressive $7 billion financing package to fund its massive AI infrastructure order backlog. The stock fell 10% in early premarket trade following the announcement.
How much did Taiwan Semiconductor's May sales increase?
Taiwan Semiconductor (TSM) reported a 30% year-over-year surge in May sales, reinforcing demand for hardware built for Nvidia and AMD. The stock fell 2% in early premarket trade despite the sales growth.
