Tech eyes recovery after selloff, Micron to report results - What’s moving markets

Investing.com - S&P and Nasdaq futures edged higher on Wednesday after a sharp selloff in technology shares rattled Wall Street, with investors looking to earnings from memory-chip maker Micron for clues about the health of the artificial intelligence trade.

Meanwhile, oil prices continue to fall as progress in U.S.-Iran negotiations eases supply concerns, while fresh developments involving Nvidia, Meta and major stock indexes highlight how AI and market structure remain key themes for investors.

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   Futures rebound after tech rout, Micron earnings awaited

   
   

U.S. stock index futures rose early Wednesday, signaling a modest recovery after a bruising session for technology and semiconductor stocks.

By 0422 ET (0822 GMT), S&P 500 futures were up 0.2%, while Nasdaq futures gained 0.5%. Dow futures lagged, slipping 0.16%.

Investors were encouraged by stronger-than-expected business activity data and continued declines in oil prices, which have fallen closer to pre-conflict levels as tensions between the U.S. and Iran ease.

Attention is now turning to quarterly results from Micron Technology, one of the world’s largest memory-chip makers. The company is seen as a key barometer for AI-related spending because its chips are widely used in data centers and advanced computing systems.

Micron’s results could provide an important test of whether demand tied to artificial intelligence remains strong enough to justify the sector’s lofty valuations following recent market volatility.

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   Nvidia chips soar on China’s black market - FT

   
   

Prices for Nvidia’s most advanced AI systems have more than doubled on China’s black market as U.S. export restrictions tighten access to cutting-edge American technology.

According to the Financial Times, Nvidia’s DGX B300 server is now selling for more than 8 million yuan ($1.1 million) in unofficial channels, up from roughly 4 million yuan six months ago. The system contains eight of Nvidia’s powerful Blackwell AI processors.

The surge highlights the continued demand for advanced AI hardware in China despite years of U.S. efforts to restrict exports of leading-edge semiconductor technology.

The development also underscores Nvidia’s dominant position in the AI ecosystem. Even with restrictions in place, demand for the company’s products remains strong enough to support significantly higher prices in secondary markets.

For investors, the story highlights both the opportunities and risks facing AI leaders. Global demand remains robust, but geopolitical tensions continue to shape where and how advanced technologies can be sold.

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   Meta faces AI review pressure - NYT

   
   

The Trump administration is reportedly asking Meta to voluntarily submit its artificial intelligence models for government review, according to a report from The New York Times.

Meta is currently the only major U.S. AI developer that has not agreed to participate in a federal review process, according to the report. The company launched its most advanced AI model, Muse Spark, earlier this year.

The request comes as Washington takes a more active role in overseeing advanced AI systems. Earlier this month, the administration imposed strict restrictions on Anthropic’s flagship AI models over national security concerns, forcing the company to temporarily suspend access before reaching an agreement with regulators.

While the review process is voluntary, the Anthropic episode demonstrated the government’s willingness to intervene aggressively when it believes advanced AI technology could pose security risks.

For investors, the development is another reminder that regulation is becoming a major factor in the AI industry. Government oversight could influence product launches, international expansion plans and future revenue opportunities for leading AI companies.

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   Honeywell Aerospace set for index debut

   
   

Honeywell Aerospace is set to join both the S&P 100 and S&P 500 after its upcoming spinoff from Honeywell International, prompting a rush among institutional investors to adjust their portfolios.

The company will replace Honeywell in the S&P 100 and take the place of Conagra Brands in the S&P 500 once the transaction is completed on June 29.

The announcement sent Honeywell Aerospace’s when-issued shares up more than 9% in after-hours trading as investors anticipated buying from index funds that track the benchmarks.

Index inclusions often create strong demand because passive funds are required to purchase newly added stocks in order to mirror the benchmark.

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   Alphabet joins the Dow

   
   

Alphabet will replace Verizon in the Dow Jones Industrial Average later this month, marking the latest evolution of one of America’s most closely watched stock indexes.

The change will take effect on June 29 and represents the first adjustment to the Dow since Nvidia and Sherwin-Williams joined the benchmark in late 2024.

The addition reflects Alphabet’s growing importance within the U.S. economy and financial markets, particularly as artificial intelligence becomes a larger driver of corporate growth and investment.

While the Dow contains only 30 companies, inclusion in the index often raises a company’s visibility among investors and can lead to additional demand from funds that track the benchmark.

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