U.S. stock futures hovered around the flatline late on Wednesday with investors shifting their focus on closely awaited inflation report, which may control market sentiment as the year concludes. As equities concluded several sessions of severe losses fuelled by technology stocks, traders seemed risk-averse, preferring to wait for an opportunity to present more edible evidence before executing decisive actions.
The S&P 500 futures contracts increased by about 0.1, and the Nasdaq 100 futures contracts advanced by about 0.2. The Dow Jones Industrial Average futures were down marginally and showed a trace of pre-existing uncertainty following an erratic ordinary trading session.
Inflation data looms large after shutdown delay
The November CPI report has added relevance. It is the first inflation rate to be reported since the U.S. government shutdown. According to a survey by Dow Jones, the economists forecast headline inflation to increase at a rate of 3.1 per year, which could support the conservative opinion of the Federal Reserve with respect to lowering interest rates.
The recent economic data have not provided consistent signals, with a divide between investors on whether inflation is slowing down at a pace sufficient to warrant less restrictive monetary policy in early 2026. An unexpectedly high print will revive concerns that the rates will not decrease as quickly, whereas a lower reading will rekindle the hope of the financial situation improving.
Market participants have taken limited risk ahead of the release, especially after another round of selling in technology stocks that had driven the market rally.
Tech-led sell-off pressures major indexes
The futures session on Wednesday saw stocks coming into the market after a beat-up regular trading session; this was the fourth straight drop in both the S&P 500 and the Dow Jones Industrial Average. The Nasdaq Composite was the most affected and fell 1.8% as the heavyweight technology and semiconductor stocks were again under pressure.
The retreat stemmed largely from concerns surrounding the capital-intensive nature of artificial intelligence infrastructure investments. Oracle stock dropped over 5 percent following a report that a major investor had pulled out of an intended $10 billion data center project in Michigan, casting new questions over the viability of the large-scale construction projects linked to AI demand.
The effect of that development spread throughout the industry, bringing down other chipmakers and infrastructure vendors. Broadcom fell 4.5 percent, and Nvidia and Advanced Micro Devices also fell decisively. Investors have become hyperactive to indications that the AI boom might need additional debt and extended periods to turn into meaningful returns.
Technology stocks are one of the best-performing sectors of 2025, regardless of the recent pullback, up by about 19% year to date. Nevertheless, the drastic turnarounds have highlighted how swiftly sentiment can change when expectations are going faster than the fundamentals.
Micron delivers rare bright spot in after-hours trading
While much of the technology sector struggled, Micron Technology provided a counterpoint in extended trading Wednesday. The memory chipmaker stock rose by over 7 percent when the company announced fiscal first-quarter earnings that were higher than Wall Street projections and provided a strong revenue outlook.
Micron projected a revenue of about 18.7 billion in the current quarter, which is significantly higher than the estimates of analysts of about 14.2 billion. The company referenced a high demand in memory and solid-state storage products in AI-driven data centers, which supports the perception that there are still niche markets in the semiconductor industry that are still enjoying the AI buildout.
MillerKnoll, too, experienced over 7 percent stock gain following robust earnings and solid guidance, providing additional indications that pockets of corporate America are immune to the broader market, which loses its balance.
Investors reassess AI enthusiasm, not abandon it
Market strategists were skeptical of an interpretive use of the recent tech sell-off as a wholesale repudiation of investments related to artificial intelligence. Rather, the move was characterized by many as a reset button following months of exaggerated returns and high expectations.
“Some air is being let out of the balloon, but the overall market is hanging in all things considered,” said Ryan Detrick, chief market strategist at Carson Group. He noted that technology stocks had just completed one of their longest winning streaks in history before the current pullback.
Coinbase expands ambitions beyond crypto trading
Away from equities and inflation, Coinbase made headlines after announcing plans to broaden its platform well beyond cryptocurrency trading. The exchange said it will add stocks, futures, perpetual contracts and prediction markets as part of its push to become an “everything exchange.”
The prediction markets initiative will launch in partnership with Kalshi, allowing users to trade contracts tied to real-world events. Coinbase also plans to support tokenized versions of traditional assets, including equities, that will trade on blockchain infrastructure.
Shares of Coinbase rose modestly in after-hours trading, signaling cautious optimism about the strategy as the company seeks to diversify revenue streams amid regulatory scrutiny and fluctuating crypto volumes.
Global tensions and geopolitics remain in focus
Geopolitical risks were also in the background as investors kept an eye on events abroad. The U.S. accepted the biggest arms sale it had made to Taiwan, which is likely to elicit a strong reaction in China and contribute to the current tensions in the region.
President Donald Trump, in the meantime, declared a blockade on approved oil tankers going in and out of Venezuela, throwing new uncertainty in the energy markets around the world. Although the oil prices did not react quickly in the short run, analysts cautioned that disruptions in the long run would affect the inflation in the months to come.
Markets wait for a catalyst
Stock futures remain unchanged to a large degree and volatility is high, thus markets seem to be in a holding pattern until inflation data on Thursday. The CPI report would give investors the kind of clarity they have been wanting, and it will either confirm hope that the price pressures have been eased, or strengthen fears that inflation is entrenched.
Meanwhile, traders are taking a wait-and-watch position, weighing good company profits in a few places against general concerns regarding valuation, debt and monetary policy. The next big step in the market as the year ends could be the lack of a significant movement in the market less about the headlines, and more about whether inflation data can convince the market that the economy is cooling and not falling into something worse.