US pre-open: Wall Street futures edge higher after AI-led pullback
By Iain Gilbert
Date: Wednesday 24 Sep 2025
(Sharecast News) - Wall Street futures were pointing to a mostly positive open ahead of the bell on Wednesday after the S&P 500 pulled back from record highs in the previous session, snapping a three-day winning streak in the process, due to concerns surrounding the AI trade that has led the recent bull market.
As of 1230 BST, Dow Jones futures were up just 0.02%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.15% and 0.30% firmer, respectively.
The Dow closed 88.76 points lower on Tuesday, reversing gains recorded in the previous session as traders continued to monitor events in Washington and thumbed over a preliminary reading of S&P Global's composite purchasing managers index.
Shares in leading AI names Nvidia and Oracle came under pressure on Tuesday, as investors grew wary of stretched valuations and the increasingly circular nature of the sector's growth narrative. However, Micron Technology was in the green in pre-market action thanks to some better-than-expected earnings and solid guidance. Micron also stated the artificial intelligence boom had boosted revenues by 46% in Q1.
Market participants also appeared to be taking some profits across the tech space after Federal Reserve chairman Jerome Powell highlighted elevated market valuations during a press conference on Tuesday.
Political uncertainty added to the risk backdrop, with investors monitoring developments in Washington as the threat of a government shutdown loomed. Donald Trump cancelled a meeting with Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries that had been expected to help avert a shutdown before the 30 September deadline.
On the macro front, mortgage applications rose by 0.6% week-on-week in the seven days ended 19 September, according to the Mortgage Bankers Association of America, holding the near 30% surge from the prior week, which was the second-highest weekly reading since interest rates crashed in March 2020. Last week's reading came alongside another drop in benchmark mortgage rates, now at a one-year low. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, ticked up 1% following the 60% surge in the previous week, while applications for a mortgage to purchase a new home were flat week-on-week.
Still to come, August's new home sales figures will be released at 1500 BST.
No major corporate earnings were slated for release on Wednesday.
Reporting by Iain Gilbert at Sharecast.com
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