U.S. stock futures edged higher Wednesday morning as reports of a potential diplomatic breakthrough over the Strait of Hormuz lifted investor sentiment broadly.
As of 4:00 a.m. ET, Nasdaq futures were up 0.1%, while S&P 500 (SPY) and Russell 2000 futures gained 0.4% and Dow futures rose 0.2%.
Economist Ed Yardeni said his year-end S&P 500 target of 8,250 now looks “conservative,” citing robust corporate earnings momentum driving markets higher.
Brent crude and WTI crude both traded lower overnight after U.S. officials indicated an agreement with Iran on reopening the strait could be close.
Retail sentiment on Stocktwits shifted notably, with the SPDR S&P 500 ETF (SPY) improving to “neutral” from “bearish,” while the Invesco QQQ Trust (QQQ) flipped to “bullish” from “bearish.”
SpaceX (SPCX) shares plunged 9% in early premarket trade despite strong revenues, as its exclusive Nvidia GPU partnership and direct-to-cell telecom push raised capital expenditure questions among investors.
Elon Musk said during SpaceX’s earnings call there is a “non-zero” chance of reaching $1 trillion in annual revenue by 2030, while also warning that memory demand is growing at “200% a year.”
Musk called hardware memory output the primary “limiting factor” for AI expansion, putting Micron (MU), SanDisk (SNDK), and SK Hynix back into sharp focus for traders.
Advanced Micro Devices (AMD) shares cracked 7% in early premarket trade after reporting a sharp Q2 capital expenditure surge to $808 million and losing future satellite AI chip supply to Nvidia.
Palantir (PLTR) shares fell 2% in early premarket trade following a 30% post-earnings surge on Tuesday, with Michael Burry saying on X he wished he had been short “$1 trillion worth of Palantir.”
Cathie Wood’s ARK Invest trimmed its Palantir (PLTR) holdings following the rally, adding further selling pressure to the high-profile data analytics company’s premarket performance.
Microsoft (MSFT) shares drew attention after 13F filings revealed Michael Burry’s Scion Asset Management completely exited its long position in the software giant while maintaining bearish bets across semiconductors.
Rocket Lab USA (RKLB) shares rose 4% in early premarket trade after the company landed a $397 million Space Force contract, providing a significant boost to investor confidence.
Silver-linked assets including First Majestic Silver (AG), Hecla Mining (HL), and iShares Silver Trust (SLV) rose over 3% in early premarket trade as spot silver hit one-month highs.
Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD) face a 12-day antitrust trial scheduled for March 2, 2027, in California federal court, with Paramount CEO David Ellison expressing full confidence in the outcome.
Investors are watching for the ADP jobs report, S&P Global Final Services PMI, and ISM Final Services PMI releases, with Walt Disney (DIS), Shopify (SHOP), and Uber Technologies (UBER) reporting earnings before the bell.
