Nvidia Amazon Microsoft: Why are Nvidia, Amazon, Meta, Microsoft stocks, share prices are up today? What to expect at S&P 500, Nasdaq, Dow?

U.S. Stock Market indexes are set for a positive opening on Wednesday. On Wednesday, most megacap and growth stocks rose in premarket trading. Nvidia was up 1.9 per cent after the ​company said it had signed a multi-year deal to sell Meta Platforms millions ⁠of its ‌current and future AI chips. Other megacaps also advanced. Amazon.com rose 1.6 per cent and Meta ​and Microsoft added ​0.7 per cent each in broad-based gains. Dow futures today rose 243 points, or 0.49 per cent, S&P 500 futures gained 39 points, or 0.57 per cent, and Nasdaq 100 futures added 161.5 ​points, or 0.65 per cent.

Markets have been volatile, with the S&P 500 ending 0.1 per cent higher on Tuesday after falling as much ‌as 0.9 per cent ⁠early in the ⁠session. The Nasdaq and the Dow also saw similar reversals. Wall Street’s main indexes have been rocked this month by worries of disruption ​from rapidly improving AI tools that hit sectors from software to trucking.

Broader AI-linked and megacap technology stocks had also lost ​ground as investors looked for stronger evidence the heavy investments in the technology were tangibly boosting revenue and profits.

The release of minutes from the Fed’s January policy meeting, ⁠where it held its main lending rate steady, are expected later in ​the day.

Traders are pricing in a chance of roughly 63 per cent for a rate cut of at least 25 basis points at the Fed’s June meeting, the first with odds above 50 per cent, according to CME’s FedWatch Tool.

Among early movers, Palo Alto Networks dropped 7.2 per cent after the cybersecurity company trimmed its annual profit forecast, signaling rising costs from recent acquisitions to enhance its artificial intelligence capabilities. Cadence Design Systems climbed 5.8 per cent after the chip design software provider beat fourth-quarter revenue estimates.
Hard-disk drive maker Western Digital plans to raise $3.17 billion by selling some of its stake in former unit Sandisk through a secondary share sale, sending Sandisk’s shares falling 2.4 per cent.Later in the week, the personal consumption ‌expenditure report – the Fed’s preferred inflation gauge – will be in focus and is expected to provide insights into inflation and how it could impact borrowing costs.

Earnings season is also ​in focus, with ​chipmaker Analog Devices and contract research ⁠firm Charles River Laboratories among prominent companies reporting results before the bell.