Nasdaq 100 Forecast: AMD and Nvidia Fuel Tech Comeback in US Stock Market

Tech Leads Futures Higher as AMD Sparks AI-Fueled Rebound

U.S. stock futures climbed early Wednesday as traders stepped back into technology names following Tuesday’s pullback. Nasdaq 100 futures were up 0.58%, S&P 500 futures gained 0.32%, and Dow futures added about 0.22%. The bounce came as investors rotated back into AI-related plays, with AMD and Nvidia leading the charge.

Is AI Hype Driving the Tech Trade Again?

Advanced Micro Devices jumped more than 6% premarket after CEO Lisa Su projected that the total market for AI data center hardware could hit $1 trillion by 2030. Su said the “insatiable” demand for AI chips should lift overall company revenue in the years ahead.

Nvidia rose over 1% after supplier Foxconn reported a 17% year-over-year profit gain, boosted by AI server demand.

Both stocks had been hit hard Tuesday, dropping roughly 3% and 2%, respectively, as traders questioned whether valuations were getting too rich.

The rebound shows that AI enthusiasm hasn’t cooled off — just paused. Traders are still chasing momentum, but they’re being more selective after a sharp run-up across the sector.

Dow Holds Steady as Rotation Continues

While tech is regaining some ground, Tuesday’s trade highlighted a broader rotation at play. The Dow surged more than 550 points to a record close, lifted by defensive and consumer names like Walmart, Home Depot, and McDonald’s.

Health care stocks also outperformed, led by Eli Lilly and Johnson & Johnson. Traders appear to be parking cash in sectors with stronger fundamentals and lower multiples while waiting for clarity on earnings and economic data.

Government Shutdown Nears End, Yields Ease

Treasury yields moved lower as Washington appeared close to ending the record-setting government shutdown. The 10-year yield slipped to 4.07%, while the 2-year dropped to 3.56%. A Senate-passed bill to fund the government through January now heads to the House, where approval would clear the path for President Trump’s signature.

The shutdown has delayed major data releases — including CPI and nonfarm payrolls — leaving traders to trade on sentiment and positioning rather than fundamentals. Economists warn it could take time for agencies to clear the data backlog once operations resume.

Outlook: Santa Rally Still in Play?

Despite the choppy start to November, analysts remain upbeat. The S&P 500 slipped 1.6% last week, but historically, early November weakness rarely derails year-end rallies.

Several factors support that view — steady fund inflows, renewed corporate buyback activity, and “insatiable” retail demand that’s kept a floor under equities. Systematic funds are also sitting on cash, leaving room for fresh allocation once volatility settles.

The takeaway: as long as earnings hold and bond yields stay contained, the setup for a year-end push remains intact. But traders are cautious — after the recent run-up, the market may need to consolidate before buyers press the next leg higher.

More Information in our Economic Calendar.