Traders work as the market opens on the floor of the New York Stock Exchange (NYSE) on November 18, 2025 in New York City.
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Stock futures rebounded on Wednesday from a four-day slide centered around technology as investors bet Nvidia’s earnings after the bell would calm fears that artificial intelligence stocks are overvalued and overhyped.
Futures tied to the Dow Jones Industrial Average traded 34 points higher, or 0.1%. S&P 500 futures advanced 0.2%, along with Nasdaq 100 futures.
Nvidia shares rose nearly 2% in the premarket ahead of its third-quarter results scheduled for after the bell. Other chip stocks like Advanced Micro Devices and Broadcom were higher alongside it, with both climbing almost 1%.
“We continue to believe that concerns over an AI bubble bursting are overblown…at least for now,” wrote Chris Senyek of Wolfe Research. “Should the broader U.S. economy hit a soft patch of economic data, we think Tech/Comm Services companies are well positioned to weather a temporary storm. As such, we remain buyers of AI related stocks on share price weakness, but [we’re] waiting for either an upside NVDA surprise or more washed out technical to become more aggressive buyers.”
Tuesday’s session saw the Dow Jones Industrial Average and S&P 500 notch their fourth consecutive losing days, with the S&P 500 notching its longest slide since August. The tech-heavy Nasdaq Composite recorded its fifth negative day in six sessions. Bitcoin briefly dropped below $90,000 on Tuesday before recovering, while gold prices rose from a one-week low.
Most sectors in the broader market closed up higher on Tuesday but key tech names once again weighed on stocks, with hot AI stocks such as Nvidia, Palantir Technologies, Microsoft and AMD closing in the red. The Technology Select Sector SPDR Fund (XLK) closed 1.6% lower. Technology and consumer discretionary have been the most beaten-down sectors this month, while health care stands out as the best performer.
Weakness in tech comes ahead of Nvidia’s highly awaited third-quarter results due after Wednesday’s market close. Analysts largely expect that Nvidia — the largest company in the broad-market index — will meaningfully beat Wall Street’s expectations and forecast strong sales growth driven by demand for its AI chips and other infrastructure. But Nvidia has a high bar to beat. Investors have taken profits from their tech holdings in recent days, reflecting heightened concerns that the AI boom has run up the valuations of Nvidia and other tech hyperscalers at an unsustainable pace.
