Investing.com– U.S. stock index futures rose in evening deals on Wednesday, steadying after a rout in chipmaking stocks, on concerns over more trade disruptions, sparked steep losses on Wall Street.
Growing bets on early interest rate cuts by the Federal Reserve also spurred a broader pivot away from technology stocks and into more growth-sensitive sectors. This saw the surge to record highs even as its Wall Street peers lagged.
rose 0.2% to 5,652.75 points, while rose 0.3% to 20,067.0 points by 20:43 ET (00:43 GMT). rose 0.2% to 41,589.0 points.
Chip stocks rise after China fears, Trump comments spur steep losses
Heavyweight technology and chipmaking stocks rose in aftermarket trade after clocking outsized losses during the session.
Heavyweights such as NVIDIA Corporation (NASDAQ:) rose 1% after a 6.6% slide, while TSMC (NYSE:) rose 2.4% after a nearly 8% tumble. Majors such as Apple Inc (NASDAQ:) and Microsoft Corporation (NASDAQ:) also steadied after falling during the session.
Reports that the Biden administration was considering more export curbs on China, particularly in chipmaking technology, battered the sector, given that it could herald lower sales in China, which is a major consumer of chips.
Concerns over heightened geopolitical tensions between China and Taiwan dented chip stocks, after Republican Presidential candidate Donald Trump said Taiwan should pay the U.S. for defense supplies.
Tech stocks were also pressured by a broader shift into more economically sensitive sectors, amid growing bets that the Fed will begin cutting rates from September.
This saw the rise 0.6% to a record high of 41,198.08 points. The fell 1.4% to 5,588.27 points, while the finished down 2.8% at 17,997.81 points.
Netflix, TSMC earnings awaited
Focus remained on the second quarter earnings season, with technology majors Netflix Inc (NASDAQ:) and TSMC set to report earnings on Thursday.
TSMC is considered a bellwether for the chipmaking industry, and is expected to log a bumper second quarter profit on increased demand from the artificial intelligence industry.
Lithographic equipment maker ASML Holding NV (AS:) ADR (NASDAQ:), which is also considered a bellwether for the chip industry, clocked stronger than expected second quarter earnings, as it flagged increased demand from the AI industry.
Earnings from Blackstone Inc (NYSE:), Alaska Air Group Inc (NYSE:) and Intuitive Surgical Inc (NASDAQ:) are also due on Thursday.
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