British News Agency

S&P 500 futures and Nasdaq 100 futures rose by 0.29% and 0.45%, respectively. Dow Jones Industrial Average futures gained 6 points, or 0.01%.

Alphabet was the latest of the so-called “Magnificent Seven” companies to report earnings. Its shares were last down about 1%. The company projected a sharp increase in artificial intelligence spending and called for up to $185 billion in capital expenditures for 2026. Nvidia and Broadcom rose following news of Alphabet’s spending plans, boosting hopes tied to the AI trade.

Qualcomm fell 9% after issuing a forecast that missed expectations due to a global memory shortage.

Wall Street wrapped up a volatile trading session. The S&P 500 and Nasdaq Composite fell 0.5% and 1.5%, respectively, as losses in the technology sector intensified. Meanwhile, the 30-stock Dow gained 260 points, or 0.5%. The equal-weighted S&P 500 rose 0.9%.

Software stocks plunged as investors broadly exited technology shares amid concerns about the impact of the AI revolution on the sector, rotating instead toward other areas of the market perceived as offering more attractive valuations.

However, by the end of the session, many investors argued that the sell-off had gone too far and that it was time to buy the dip.

Earnings season continues, with Tapestry and Peloton Interactive set to report before the opening bell on Thursday. Investors will also be watching for Amazon’s results after the close. Weekly jobless claims data due Thursday morning will also be closely monitored.

Federal Reserve Board Governor Lisa Cook said on Wednesday that although the overall condition of the economy remains solid, progress on inflation stalled last year.

Speaking at the Miami Economic Club, Cook noted that the personal consumption expenditures price index rose 2.9% in the 12 months through December and is still estimated to be above the central bank’s 2% target. Core inflation, excluding food and energy, is expected to be 3% at the end of 2025.

“These figures indicate that progress on inflation has essentially stalled in 2025,” Cook said. “I have long emphasized how important it is to bring inflation back to our target. After seeing significant disinflation over the past few years, such a pause is disappointing.”

Cook stressed that deflationary trends in housing services continue, but noted a “notable increase in inflation” in core goods prices, saying, “This primarily reflects the increase in tariffs imposed on a wide range of imported goods last year.”

However, she added that these tariff increases are expected to lead only to a one-time rise in the price level, saying, “This raises the possibility that the recent deflationary trend could resume once the effects of the tariffs fade.”