HG MARKETS: 

U.S. stock futures moved higher during Wednesday’s Asian trading session, with technology stocks leading the advance as stronger-than-expected earnings from CoreWeave boosted investor confidence in the artificial intelligence (AI) sector. However, gains remained somewhat cautious as hotter-than-anticipated U.S. inflation data and increasingly hawkish Federal Reserve expectations raised concerns about further monetary tightening.

The S&P 500 futures advanced 0.6% to 7,590, while Nasdaq 100 futures outperformed, climbing 1.4% to 28,220. Dow Jones futures also edged higher by 0.2% to 52,433.00.Technology-sector sentiment received a significant boost from CoreWeave (NASDAQ: CRWV), whose shares surged more than 16% in extended trading following better-than-expected revenue results and strong demand for its cloud computing services.  

The company’s performance reinforced expectations that spending on AI infrastructure, data centres and advanced computing capabilities remains resilient. The results provided some reassurance to investors concerned about the sustainability of massive AI-related capital expenditure. Strong demand for cloud infrastructure could continue supporting semiconductor manufacturers and other technology companies benefiting from the expansion of artificial intelligence.

 Meanwhile, investors are also monitoring reports surrounding Anthropic’s potential initial public offering (IPO). The proposed listing could reportedly raise as much as $64.4 billion at a fully diluted valuation of up to $1.4 trillion. Such a sizeable offering could become an important test of investor appetite for high-valued AI companies, particularly amid recent volatility across the technology sector.

Despite the recovery in futures, the previous U.S. trading session ended in negative territory. The Dow Jones Industrial Average declined 0.3%, while the S&P 500 slipped 0.4% and the Nasdaq Composite dropped 0.7%, reflecting renewed caution among investors.

The selling pressure was largely driven by hotter-than-expected U.S. inflation figures. October’s Consumer Price Index (CPI) increased 0.4% month-over-month, exceeding economists’ expectations of 0.3%. Core CPI, which excludes the more volatile food and energy components, also rose 0.3%, above market forecasts.

Although the headline inflation reading moderated from September’s 0.6% monthly increase, the latest figures indicated that underlying price pressures remained persistent. This has complicated expectations surrounding the Federal Reserve’s monetary policy outlook, as policymakers may need to maintain restrictive financial conditions for longer or consider additional interest-rate increases.

Concerns over persistent inflation were further reinforced by hawkish remarks from Federal Reserve officials. Fed Governor Christopher Waller indicated that he would support a rate increase in December, even if inflation showed signs of cooling. He also suggested that policymakers should consider a more aggressive 50-basis-point increase if inflationary pressures intensified.

Similarly, Dallas Fed President Lorie Logan emphasized that at least two additional quarter-point rate increases might be necessary to bring inflation under control. Following the inflation release and these policy comments, market expectations shifted further toward monetary tightening.

 According to CME FedWatch data, traders were pricing in a 91% probability of a 25-basis-point rate increase at the December FOMC meeting, compared with 84% on Monday. Meanwhile, the probability of a larger 50-basis-point increase climbed to 10%.