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postUS stock futures rose on Wednesday, with Wall Street looking to add to back-to-back sharp gains to lead into the holiday trading shutdown.
Dow Jones Industrial Average futures (YM=F) edged up 0.2%, while those on the S&P 500 (ES=F) moved up 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) added 0.3% following sharp gains for the major indexes on Tuesday, led by a 660-point jump in the Dow.
Stocks are looking for their fourth straight advance after tech names helped buoy the broader market: Alphabet (GOOG) closed Tuesday at fresh record highs after reports that Meta (META) may adopt Google’s TPU chips as early as 2027. Nvidia (NVDA), however, retreated more than 2.5% as the chip maker’s dominance in the field came under threat.
Investors continue to watch the Federal Reserve’s next move closely. Markets are pricing in an 85% probability of a December quarter-point rate cut, according to the CME FedWatch tool, helping bolster investor spirits. Meanwhile, palace intrigue at the central bank continues to pick up steam, with five finalists on President Trump’s shortlist to take Chair Jerome Powell’s place next year.
Wall Street’s rally in the past handful of sessions has put a dent in what had been shaping up to be a tough month. Concerns about stretched valuations have tempered enthusiasm for megacap tech names. The S&P 500 (^GSPC) and the Dow (^DJI) remain down just over 1% in November, while the tech-heavy Nasdaq Composite has shed nearly 3%.
In a holiday-shortened week, earnings and economic data hit their peak on Tuesday with big-box retailers posting better-than-expected results and shutdown-delayed economic data finally reaching investors. Deere & Company (DE) is the biggest name left on this week’s earnings calendar, with markets shuttered Thursday and finishing at 1 p.m. ET on Friday.
LIVE 6 updates
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Nvidia says it isn’t using ‘circular financing’ schemes. 2 famous short sellers disagree.
Yahoo Finance’s Laura Bratton reports:
Nvidia (NVDA) sent a memo to Wall Street analysts over the weekend arguing that it is not engaged in vendor financing, a controversial practice in which suppliers invest in or extend loans to their own customers.
Famed short sellers Jim Chanos and Michael Burry aren’t so sure.
Nvidia wrote a seven-page document — first reported by Barron’s on Tuesday morning — rebuffing claims that it invests in its own customers to inflate its revenue. The memo was written in response to a newsletter from a little-known Substack author last week claiming that the $5 trillion AI chipmaker is engaged in a “circular financing scheme” — using vendor financing to boost sales — drawing parallels between Nvidia and famous dot-com era accounting frauds committed by Enron and Lucent.
… Chanos, who is famous for predicting the fall of Enron, thinks the comparison between Nvidia and Lucent bears weight.
“They’re [Nvidia is] putting money into money-losing companies in order for those companies to order their chips,” Chanos told Yahoo Finance in an interview.
Read more here.
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Premarket trenders: Alphabet, WorkDay and HP
Alphabet (GOOG, GOOGL) stock continued to rise in premarket trading on Wednesday and was up more than 1% following the report that Google is in talks to supply chips to Meta (META).
WorkDay (WDAY) stock fell more than 5% before the bell on Wednesday after reporting lukewarm third quarter subscription revenue, a sign of softer demand.
HP (HP) stock fell 5% during premarket trading on Wednesday following the tech company’s news that it will reduce its headcount by 4,000 to 6,000 people. HP also issued a lower-than-expected earnings projection for the new fiscal year.
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HP stock sinks after CEO says it’s cutting thousands of jobs amid AI push
Shares of HP Inc. (HPQ) slid over 5% in premarket trading as Wall Street assessed its quarterly earnings released late Tuesday.
The tech company plans a sweeping AI initiative tied to new restructuring efforts that are expected to eliminate up to 6,000 jobs worldwide and to generate $1 billion in cost savings in coming years.
Yahoo Finance’s Francisco Velasquez reports:
Read more here and watch the full interview with Lores and Yahoo Finance executive editor Brian Sozzi below.
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Dell stock pops as strong AI demand lifts FY profit guidance
Dell (DELL) shares rose nearly 6% in premarket trading after the company slightly missed Wall Street’s revenue estimates but issued fourth quarter financial guidance above expectations.
The tech hardware giant pointed to surging demand for its AI servers and stronger performance in its infrastructure business.
From Reuters:
Read more here.
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Gold rises on Fed rate-cut and dollar weakness
Bloomberg reports:
Read more here.
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Alibaba AI arm sees over a third in revenue growth
Bloomberg reports:
Read more here.
