Traders work on the floor of the New York Stock Exchange.<\/p>\n
NYSE<\/p>\n
Stock futures ticked higher on Wednesday as artificial intelligence darling Nvidia<\/a> recovered some of its losses from the previous session.<\/p>\n Futures tied to the benchmark rose 0.2%, while Dow Jones Industrial Average futures<\/a> were up 48 points, or 0.1%. Nasdaq-100 futures<\/a> advanced 0.3%.<\/p>\n Shares of Nvidia were marginally higher on Wednesday, rising 0.4% in the premarket, reversing course from the prior trading day that was dominated by heightened fears about the circular nature of the AI industry, sparked by a partnership between Nvidia and OpenAI<\/a>. Nvidia, along with fellow leading AI player Oracle<\/a>, tumbled on worries the advance was running out of steam with the outlook already priced into the shares.<\/p>\n Shares of Micron Technology<\/a> initially gained before ultimately moving lower as the company’s earnings and forecast weren’t strong enough to impress investors. The move lower signals that confidence in the AI trade is still in question.<\/p>\n The S&P 500<\/a> closed in the red on Tuesday, snapping a three-day winning streak, on worries about the AI trade that has led the bull market. The broad market index had reached a new all-time intraday high earlier in the session and posted a record close the previous day. The\u00a0Nasdaq Composite<\/a>\u00a0also fell, pulled down by Nvidia.<\/p>\n Traders could also be profit-taking amid elevated market valuations, which Federal Reserve Chair Jerome Powell\u00a0called out <\/a>at a Tuesday press conference.<\/p>\n Wells Fargo chief equity strategist Ohsung Kwon remains bullish on the AI trade, anticipating that spending will continue to be robust. “I think this is a AI-led bull market, and I think this is likely to continue,” he said Tuesday on CNBC’s “Power Lunch.”<\/a><\/p>\n “First of all, it’s not a bubble,” Kwon continued. “The entire outperformance of the Nasdaq since the end of tech bubble has been driven by better fundamentals in the Nasdaq versus the S&P 500, and I think that’s likely to continue. Second, we still think we are in the early innings of the AI investment cycle. … I think the way this plays out is, as long as the equity market continues to reward companies’ capex outlook and the growth outlook, this is likely to continue.”<\/p>\n