US Stock Futures Climb Ahead of Fed Rate Decision and Big Tech Earnings

Market Overview and Fed Decision

By Pranav Kashyap and Twesha Dikshit

Impact of Big Tech Earnings

Jan 28 (Reuters) - U.S. stock index futures rose on Wednesday, helped by gains in chip stocks, while investors geared up for a Federal Reserve rate decision and quarterly earnings results of Big Tech companies.

Chip Stocks Performance

The Fed convenes later in the day for its rate decision, with policymakers widely expected to keep rates unchanged at 3.5%–3.75%. Traders will watch out for the Fed's statement and Chair Jerome Powell's remarks, for clues on the future rate trajectory.

Economic Indicators

In premarket trade, Nvidia climbed 1.7%, Intel jumped 5.5%, and Micron and Microchip Technology each gained over 4%. SK Hynix, a key Nvidia supplier, reported a record quarterly profit and ASML booked its highest ever fourth-quarter orders, igniting a tech rally from Europe to Asia.

The S&P 500 has rebounded to touch a record high, with attention shifting to the earnings story after U.S. President Donald Trump's threats to acquire Greenland had led to bouts of sell-offs earlier this month, sending safe-haven gold soaring.

"As we move into earnings season, there is a sense of increasing optimism. Tech is always closely watched because people want to see whether it can continue performing the way it has in recent history," said Louise Dudley, portfolio manager for global equities at Federated Hermes.

At 07:12 a.m. ET, Dow E-minis were down 23 points, or 0.05%, S&P 500 E-minis were up 18 points, or 0.26%, and Nasdaq 100 E-minis were up 213 points, or 0.82%.

The U.S. central bank, which recently started receiving real-time data on the economy's health after a partial government shutdown last year, is navigating policy while peering through an increasingly politicized fog.

This meeting arrives in the backdrop of a Justice Department inquiry launched earlier this month involving Powell and Trump's hints that a successor will be named "soon".

"MAG 7" KICKS OFF EARNINGS

Meta, Microsoft and Tesla report after the market closes, kicking off the so-called "Magnificent Seven" earnings that have driven the AI trade, powering markets to record levels.

With lofty valuations driving rotation into undervalued areas of the market, the group's capital plans will be closely watched as investors question whether AI spending still justifies elevated prices.

Texas Instruments jumped 8.2% after the analog chipmaker forecast first-quarter revenue and profit above Wall Street estimates.

AT&T shares rose 3.4% after the U.S. carrier forecast annual profit above market expectations. GE Vernova raised its annual revenue forecast but shares were down 1.3%.

Textron dropped 3.4% after forecasting fiscal profit below estimates, while Otis fell 5% after fourth-quarter revenue missed expectations.

Meta slipped 0.2%, while Microsoft and Tesla were up 0.2% each. Bellwether IBM, also due to report after the market closes, was marginally up.

Seagate Technology jumped 9.3% after it forecast third-quarter revenue and profit above Wall Street expectations.

(Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by Krishna Chandra Eluri)