HG MARKETS: 

Nasdaq futures edged higher on Wednesday, supported by strong third-quarter earnings from South Korean memory-chip manufacturer SK Hynix, which triggered a global rally in AI-related semiconductor stocks.

 Investors also focused on upcoming earnings from major technology companies and the Federal Reserve’s latest interest rate decision. Nasdaq 100 futures rose 111 points, or 0.4%, while S&P 500 futures gained 9 points, or 0.1%. Dow futures, however, fell 132 points, or 0.3%.

SK Hynix shares surged more than 10% in Seoul, while its U.S.-listed American Depositary Receipts climbed as much as 7% in premarket trading. The company reported record third-quarter revenue and profits and announced plans to return 100 trillion won (approximately $75.5 billion) to shareholders in 2026.

 It also expects AI-driven memory demand to keep supplies tight until at least 2030, strengthening the outlook for the semiconductor industry. Rival Samsung Electronics jumped around 9% in Seoul, while U.S.-based Micron Technology gained more than 3% before the market opened.

Market attention is now shifting toward quarterly results from Microsoft and Alphabet, which are expected to provide further insight into corporate AI spending and the potential returns on these substantial investments.

Both companies have committed hundreds of billions of dollars to AI development, drawing increasing scrutiny from shareholders over profitability. Amazon, another major investor in AI infrastructure, is scheduled to report earnings on Thursday.

 Other companies due to release results on Wednesday include GE Vernova, KLA, T-Mobile US, and Automatic Data Processing. Analysts at Vital Knowledge noted that the period from Tuesday evening through Thursday evening represents the peak of the third-quarter earnings season, keeping investors focused on corporate announcements.

Meanwhile, the Federal Reserve is widely expected to keep interest rates unchanged following its two-day policy meeting on Wednesday, after raising rates by 25 basis points in September.

Investors will closely monitor the Fed’s statement and Chair Kevin Warsh’s press conference for signals about the future policy path, particularly amid persistent inflation concerns.

Warsh has reaffirmed the central bank’s commitment to its 2% inflation target while indicating reluctance to provide explicit forward guidance. According to CME FedWatch, markets are pricing in roughly a 75% probability of another rate increase at the Fed’s final meeting of the year in December.