Chip Crisis Reversal: Investors Await Fed Decision and Big Tech Earnings

Wall Street futures for the S&P 500 and Nasdaq 100 rose by 0.24% and 0.32% respectively, as the selloff in chipmakers abated. The move was driven by investors anticipating earnings from major AI spenders like Microsoft and Nvidia, as well as the Federal Reserve's rate decision. Seagate, a key data storage player, saw a 5% rise in pre-market trading, while SK Hynix's 13x quarterly profit surge left investors stunned. Meanwhile, WTI crude prices climbed 4% amid escalating tensions in the Middle East. Analysts highlight that the chip sector downturn may reflect a temporary pause in AI demand. UBS's Ulrike Hoffmann-Burchardi notes, 'There are broader opportunities beyond narrowly focused AI plays.'