Lead: U.S. equity futures opened higher on Wednesday in New York as gains in Nvidia and Oracle helped extend a rebound that began on Tuesday. Dow Jones futures rose about 150 points, while S&P 500 and Nasdaq 100 futures were up roughly 0.3% and 0.4% respectively. Investors moved cautiously ahead of Nvidia’s earnings due after the close, with Salesforce and Snowflake also reporting results. The advance reflected renewed appetite for software and AI-linked names even as some stocks posted weak guidance.
Key Takeaways
- Dow futures climbed roughly 150 points, an increase near 0.3% at the open.
- S&P 500 futures added about 0.3% and Nasdaq 100 futures traded up about 0.4% in premarket action.
- Nvidia shares were up nearly 1% before the bell with its earnings report scheduled after the market close on Wednesday.
- Oracle jumped more than 2% after Oppenheimer upgraded the stock and set a $185 price target, implying about 27% upside.
- UBS upgraded IBM to neutral from sell; IBM had fallen about 22% so far in 2026 and underperformed the S&P 500 by nearly 27% over 12 months.
- Workday fell roughly 9% after issuing a softer subscription revenue outlook for the first quarter at $2.34 billion versus analysts near $2.35 billion.
- Macro and geopolitical drivers included President Trump’s recent tariff announcement and ongoing U.S.-Iran tensions, which investors were monitoring.
Background
The market rebound on Tuesday followed a period of volatility centered on how artificial intelligence spending and related product launches could reshape software vendors and hyperscalers. Concerns that new AI tools might displace incumbents eased after a mix of partnership news and product updates signaled both disruption and opportunity within enterprise software.
Big-cap tech valuations have been under pressure as investors weigh elevated AI capital expenditure plans by hyperscale cloud providers against near-term profit expectations for chipmakers and software firms. Nvidia sits at the center of that debate because its data center chips are a key input for large-scale AI deployments.
At the same time, analyst activity has amplified moves in individual names. Upgrades and fresh price targets can prompt outsized responses in stocks that have already experienced significant drawdowns, a dynamic visible this week in Oracle and IBM trades.
Main Event
On Wednesday morning, futures tied to the Dow Jones Industrial Average were higher by approximately 150 points, supporting a market tone that followed gains from the prior session. The move was broad enough to lift software-focused ETFs and several large-cap technology names in premarket trading.
Nvidia gained nearly 1% before the open as traders positioned ahead of its quarterly results scheduled after the close, a report that many market participants described as pivotal for sentiment in AI-related equities. Salesforce and Snowflake are also due to publish results after market hours, adding to the event risk during the session.
Oracle led software outperformance after Oppenheimer upgraded the stock to outperform and introduced a $185 target, citing what the firm called an improved risk-reward profile following a sharp pullback. Oracle had shed about 25% year to date and roughly 13% over the prior 12 months, creating a buying opportunity in the eyes of some analysts.
Not all software names participated. Workday slid about 9% on a softer-than-expected subscription revenue guide for the first quarter, showing that company-level guidance still drives large intraday moves even amid sectorwide rallies. Meanwhile, Palantir and Microsoft were among stocks that ticked higher in premarket trading.
Analysis & Implications
The near-term trajectory of equities now hinges on corporate earnings and guidance, especially from firms tied to AI infrastructure. Nvidia’s results are being watched not only for revenue and margin metrics but for any commentary on hyperscaler demand and inventory dynamics. A strong beat and constructive guidance could reinforce the current rally; a miss or conservative outlook could quickly reverse gains.
Analyst upgrades are amplifying price action in several beaten-down names. Oppenheimer’s call on Oracle and UBS’s shift on IBM illustrate how reassessments of risk-reward can translate into measurable buying pressure. For investors, these moves underscore the blend of fundamental revaluation and technical repositioning occurring after sizeable 2025-2026 drawdowns in some legacy names.
Macro factors remain a wildcard. Tariff shifts announced by the administration and geopolitical frictions with Iran add uncertainty to trade flows and risk sentiment. Even as markets celebrate corporate-level developments, these policy moves can influence sectors unevenly, with industrials, semiconductors and certain tech suppliers particularly sensitive.
Longer term, the episode highlights a broader market theme: the interplay between AI-driven capital spending and the profit outlook for suppliers and software firms. If hyperscalers keep increasing capex, semiconductor and infrastructure vendors could benefit, but persistent capex growth must translate into sustained revenue and margin expansion to justify rich multiples.
Comparison & Data
| Series | Premarket Move | Notable change |
|---|---|---|
| Dow futures | +150 points | ≈ +0.3% |
| S&P 500 futures | +0.3% | — |
| Nasdaq 100 futures | +0.4% | — |
| Nvidia (premarket) | +~1% | Earnings after close |
| Oracle (premarket) | +>2% | Oppenheimer upgrade, PT $185 |
The table above summarizes premarket moves and the most salient stock-level drivers. These snapshots are useful for intraday context but do not replace full earnings or guidance reads that will arrive later in the trading day and after the close.
Reactions & Quotes
Market strategists flagged Nvidia results as a key near-term catalyst that could determine whether the recent rebound is durable.
Market participants will watch Nvidia earnings closely to see if revenue and hyperscaler demand justify current optimism.
Ulrike Hoffmann-Burchardi, Chief Investment Officer for Global Equities
Analysts explaining their ratings changes pointed to a combination of valuation repair and the potential for operational improvement over time.
Oracle’s recent price decline creates what we see as a favorable risk-reward for patient investors, even if execution will take time to show up in the numbers.
Brian Schwartz, Oppenheimer analyst
On IBM, one bank framed the upgrade as a reflection of valuation becoming more balanced despite structural questions about legacy infrastructure exposure.
IBM’s multiple now appears to price in a lot of the downside, making the stock more balanced on a risk-reward basis.
UBS equity research note
Unconfirmed
- Reports that Nvidia will explicitly forecast revenue well above consensus in its release remain unverified until the company files results after the close.
- Speculation about an imminent strategic transaction for PayPal involving Stripe was based on unnamed sources and has not been confirmed by either firm.
- Short- and medium-term effects of the newly announced global 10% import duty on specific sector earnings remain subject to regulatory finalization and company disclosures.
Bottom Line
Markets opened higher as Nvidia and Oracle led a technology-tilted rebound that began the previous session, with futures pointing to modest gains across major indexes. Nvidia’s after-hours report and related commentary will likely set the tone for the coming sessions, given the company’s central role in AI infrastructure demand.
Analyst upgrades to legacy names such as Oracle and IBM show that valuation repair can prompt meaningful buying interest, but company-specific guidance and macro policy moves remain critical sources of risk. Traders should treat today’s premarket advances as event-driven and brace for volatility around earnings and policy headlines.
For investors focused beyond the near term, the core question is whether sustained hyperscaler capex translates into durable revenue and profit improvement for chipmakers and software vendors, a condition necessary to support higher sector multiples.
Sources
- CNBC live market coverage — news outlet providing the market session recap and company-specific moves
- Oppenheimer — investment bank, analyst research and price target on Oracle
- UBS — financial institution, research note and upgrade on IBM
- Anthropic — company blog and product announcements for Claude Cowork connectors