Traders work on the floor of the New York Stock Exchange.<\/p>\n
NYSE<\/p>\n
Stock futures ticked higher Wednesday after the S&P 500<\/a> pulled back from record levels and snapped a three-day winning streak on worries about the AI trade that has led the bull market.<\/p>\n Futures tied to the benchmark rose 0.2%, while Dow Jones Industrial Average futures<\/a> were up 27 points, or 0.1%. Nasdaq-100 futures<\/a> advanced 0.2%.<\/p>\n Shares of Micron Technology<\/a> initially gained on the back of better-than-expected earnings and a strong forecast. The artificial intelligence boom fueled a 46% increase in revenue<\/a> for Micron. The stock was last down 1%.<\/p>\n The leading memory chipmaker’s results follow a trading session that was dominated by heightened fears about the circular nature of the AI industry, sparked by a Nvidia-OpenAI partnership. Shares of leading AI players Nvidia<\/a> and Oracle<\/a> tumbled on Tuesday on worries the advance was running out of steam with the outlook already priced into the shares.<\/p>\n The S&P 500<\/a> closed in the red on Tuesday, down 0.6%, after it had reached a new all-time intraday high earlier in the session and posted a record close the previous day. The\u00a0Nasdaq Composite<\/a>\u00a0fell nearly 1%, pulled down by a 2.8% loss in Nvidia shares.<\/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