Nasdaq Futures Rise as SK Hynix AI Optimism Lifts Tech Ahead of Fed Decision

Nasdaq futures moved higher early Wednesday, supported by upbeat sentiment around artificial intelligence after SK Hynix reported strong earnings and signaled confidence in memory chip demand. This comes as market participants await a closely watched Federal Reserve decision later in the day and quarterly earnings from leading US technology firms.

Global AI Rally Driven by SK Hynix Results

According to Investing.com, Nasdaq 100 futures rose 0.46% to 29,949.25 points by 02:13 ET (06:13 GMT) Wednesday, spurred by SK Hynix's results. SK Hynix's American Depository Receipts climbed as much as 4% in aftermarket trading, while Seoul-listed shares surged 10% after the company delivered blowout third-quarter profit and revenue, and announced plans to return a total of 100 trillion won ($75.5 billion) to shareholders in 2026. The company indicated that strong memory demand, fueled by AI, could persist until at least 2030, supporting tight market conditions.

This positive momentum spread to other chipmakers: Samsung Electronics rose nearly 9% in Seoul, and Micron Technology advanced 3% in US aftermarket trade. The KOSPI index in South Korea rallied 7%. Broader chipmaking stocks in Asia and Europe followed suit, reflecting how optimism for AI-related hardware remains a key theme for traders. The session saw a favoring of companies exposed to AI demand, especially suppliers expected to benefit from ongoing industry investment.

Fed Rate Decision and Market Outlook

Investors now turn their focus to the Federal Reserve's interest rate decision concluding Wednesday. Investing.com reports the Fed is widely expected to leave its benchmark rate unchanged at 4.0% after a 25 basis point hike in September. The outcome is anticipated, with attention concentrated on the Fed's future guidance and its outlook amid persistent inflationary pressures.

Fed Chair Kevin Warsh has reiterated the central bank’s commitment to achieving its 2% annual inflation target, a goal that could require more monetary tightening if price pressures remain high. Investors are expected to scrutinize Warsh’s post-decision remarks as well as the statement for any change in tone on inflation and future rate policy.

Key Data and Major Earnings Ahead

Economic data due Thursday include third-quarter gross domestic product and the September PCE price index. The PCE data, the Fed's preferred gauge of inflation, is seen remaining well above the 2% target, according to Investing.com, and will factor into future rate expectations.

Corporate earnings will also move markets. Megacap technology companies Microsoft and Alphabet are set to report quarterly results Wednesday, with Amazon.com following on Thursday. All three are major spenders in artificial intelligence and face rising scrutiny from shareholders over returns on these investments. Other notable reports due Wednesday include GE Vernova, KLA Corporation, T-Mobile US, and Automatic Data Processing.

Market participants will look to these report cards for insight into how large technology firms are balancing significant AI investment with the need for earnings growth and capital returns, especially as monetary policy remains restrictive.

Sector Risks Amid Monetary Tightening

A principal tension persists between enthusiasm for AI hardware and the drag from tight US monetary policy. If the Fed signals a continued hawkish bias or a willingness to hike further should inflation fail to moderate, elevated valuations in growth-oriented tech sectors could come under renewed pressure. On the other hand, signs of strong AI-driven demand, as shown by SK Hynix and other chipmakers, continue to support investor appetite for the sector.