Market Overview: Tech Stocks Lift Nasdaq and S&P 500 Futures

October 29, 2025 (Reuters) — S&P 500 and Nasdaq futures rose slightly on Wednesday, driven by renewed optimism in the technology sector as Nvidia Corp. (NASDAQ: NVDA) edges closer to a historic $5 trillion market capitalization. Investors are also bracing for a Federal Reserve rate cut and upcoming earnings from key members of the “Magnificent Seven” — Alphabet, Meta, and Microsoft.

At 05:27 a.m. ET, Dow futures (YM) were down 0.28%, while S&P 500 e-minis gained 0.1% and Nasdaq 100 e-minis rose 0.27%, signaling another potential record-setting session for U.S. equities.

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Nvidia Surges as AI Boom Accelerates

Nvidia shares jumped 3% in premarket trading, positioning the semiconductor giant to surpass the $5 trillion valuation milestone. The rally followed CEO Jensen Huang’s announcement of $500 billion in AI chip bookings and a strategic initiative to build seven new supercomputers for the U.S. government.

The Santa Clara-based company’s growth continues to dominate Wall Street narratives, with AI infrastructure demand driving revenue across data centers, cloud providers, and sovereign AI initiatives.

“The commentary provided by executives will critically frame how far and how confidently the market can chase the AI story into 2026,” said Kate Leaman, Chief Market Analyst at AvaTrade, highlighting the importance of management guidance during this earnings season.

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Big Tech Earnings: Alphabet, Meta, and Microsoft in Focus

Investors are turning their attention to quarterly earnings reports from Alphabet (GOOGL), Meta (META), and Microsoft (MSFT) — all scheduled to release after market close.

• Alphabet shares rose 0.6%,
• Meta and Microsoft gained 0.3% each in premarket trading.

With tech valuations at historic highs, analysts say strong earnings alone may not drive further gains unless companies offer convincing evidence that AI spending continues to support long-term profitability.

Meanwhile, Boeing (BA) and Caterpillar (CAT) are set to report before the opening bell, with both stocks down about 0.2% early Wednesday.

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Corporate Highlights: Winners and Losers

• Teradyne (TER) surged 20.4% after beating forecasts and naming a new Chief Financial Officer, signaling renewed investor confidence.
• Mondelez International (MDLZ) dropped 5.3% after cutting its annual profit outlook, citing weaker global demand for confectionery products such as Cadbury chocolates.

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Federal Reserve Outlook: Rate Cut Expected

At 2:00 p.m. ET, the Federal Reserve is expected to lower interest rates by 25 basis points, marking a continuation of its gradual policy easing amid muted inflation data.

Following the latest government shutdown, which delayed several key economic reports, investors are relying on private surveys and corporate results for clues about the broader economic outlook. Market participants are pricing in another quarter-point rate cut in December, according to CME FedWatch data.

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Geopolitical Watch: U.S.-China Trade Truce Talks

Adding to the market backdrop, U.S. President Donald Trump began the final leg of his Asia trip in South Korea, signaling optimism about reaching a trade truce with China’s President Xi Jinping. The leaders are expected to meet in Busan on Thursday, a development closely watched by investors given its potential to ease global supply chain tensions.

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Earnings Trends: Strong Q3 Performance Across S&P 500

As of Tuesday, 180 companies in the S&P 500 had reported third-quarter results, with aggregate earnings up 10.5% year-over-year, according to LSEG data. This performance exceeds early-quarter expectations and highlights ongoing corporate resilience despite macroeconomic uncertainty.

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Market Outlook: AI Momentum Meets Policy Uncertainty

While enthusiasm around AI-driven growth continues to lift tech valuations, analysts caution that executive commentary during earnings calls will determine whether markets sustain their upward momentum into 2026.

“Investors are no longer satisfied with numbers alone — they want strategic clarity on how AI investments will translate into future returns,” said Leaman.

As Nvidia eyes the $5 trillion mark and the Federal Reserve prepares its rate decision, markets remain poised for volatility but underpinned by optimism that Big Tech earnings and AI infrastructure expansion will continue to drive global equity gains.