US pre-open: Futures trade higher as tech stocks rally on AI optimism

(Sharecast News) - Wall Street futures were in the green ahead of the bell on Wednesday as tech stocks continued to trade higher on AI optimism. As of 1255 GMT, Dow Jones futures were up 0.27%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.48% and 0.90% firmer, respectively.

The Dow closed 537.98 points higher on Tuesday, extending gains recorded ahead of the long weekend.

Trade Nation's David Morrison said: "US stock index futures were firmer in early trade this morning, with the tech-heavy Nasdaq leading the charge. This follows a positive session yesterday, which came after President Trump's inauguration on Monday, after which he signed a stack of far-reaching executive orders. Many of these focused on social issues. But in a press conference last night, he said he was considering a 10% tariff on Chinese imports, tying in with the threatened 25% tariffs on Mexico and Canada, to start on 1st February."

Trump also announced 'Stargate', a joint venture between OpenAI, Oracle and Softbank that will see "at least" $500.0bn invested into AI infrastructure in the US, helping to lift tech stocks.

Elsewhere in the corporate space, Netflix shares were up double digits prior to the open after the streaming giant posted Q4 earnings and revenue that topped analysts' expectations, while Procter & Gamble was in the green on the back of stronger-than-expected quarterly earnings, and Johnson & Johnson also traded higher after reporting a beat on both the top and bottom lines.

On the macro front, US mortgage applications rose 0.1% in the week ended 17 January, according to the Mortgage Bankers Association of America, with applications to purchase a home edging 0.6% higher week-on-week, offsetting a 2.9% drop in applications to refinance an existing mortgage.

Reporting by Iain Gilbert at Sharecast.com