The Day Ahead: Chip Rally Lifts Markets Today; Cisco and Dynatrace Set to Report

Nasdaq Futures Extend Gains on Chip Optimism; Cisco, Dynatrace Earnings and IPO Moves in Focus

Nasdaq 100 futures advanced 0.18% early Wednesday, extending a five-day winning streak, while S&P 500 futures edged up 0.07%. Dow futures were flat following Tuesday’s underperformance in the blue-chip index, which dropped 0.64% as UnitedHealth dragged. The S&P 500 rose 0.72%, turning positive for the year, as easing trade tensions between the U.S. and China and renewed strength in technology stocks lifted sentiment.

A 90-day reduction in tariffs announced Monday has supported risk appetite, with market participants viewing it as a pause in trade escalation. Analysts say the move signals a willingness from both sides to stabilize the trade environment.

Why Are Chipmakers Leading Again?

Nvidia surged 5.6% Tuesday after confirming it would ship 18,000 AI chips to Saudi Arabia. The gain pushed its two-day rally to 11.4%, as traders responded to both strong demand and the removal of prior export restrictions.

The broader chip sector followed: Monolithic Power (up 15.7% in two days), KLA (13.5%), Lam Research (13%), and Micron (13%) all posted sharp rebounds. The VanEck Semiconductor ETF (SMH) rose 3.4% Tuesday and is up nearly 10% over two sessions. Strength in chip stocks helped lift the Nasdaq, while Apple, Amazon, and Disney extended multi-day rallies.

Which Earnings Matter Today?

Before the Bell:

• Dynatrace (DT) – Est. EPS: $0.30
  Strong interest in AI-driven observability tools could drive upside.
• Tower Semiconductor (TSEM) – Est. EPS: $0.38
• Endava (DAVA) – Est. EPS: $0.31
• Arcos Dorados (ARCO) – Est. EPS: $0.12
• Cellebrite (CLBT) – Est. EPS: $0.05
• Kornit Digital (KRNT) – Est. EPS: -$0.04
• Riskified (RSKD) – Est. EPS: -$0.08
• Scholar Rock (SRRK) – Est. EPS: -$0.66
• Global-E Online (GLBE) – Est. EPS: -$0.13

After the Bell:

• Cisco Systems (CSCO) – Est. EPS: $0.92 | Revenue: $14.1B
  Analysts expect strength from enterprise demand and Splunk contributions. UBS flags potential upside.

Also reporting today is Jack in the Box, coming off a 9.5% decline Tuesday. The stock is down 35% over three months and remains 57% below its July peak.

What IPOs Are Traders Watching?

Two fintech names are making notable IPO moves:

• eToro has priced its Nasdaq debut at $52/share, above its initial $46–$50 range. The trading platform previously delayed its IPO amid tariff uncertainty.
• Chime, another fintech player, filed for an IPO and plans to trade under the ticker CHYM. Though not a bank, it partners with Bancorp Bank and Stride Bank to offer financial services.

What Are Traders Expecting From Today’s Fed Speaker?

San Francisco Fed President Mary Daly is scheduled to speak at 21:40 GMT (5:40 PM EDT). Traders will be listening for any comments on inflation trends, monetary policy stance, or signals regarding future rate adjustments. With equity markets building momentum and broader macro risks appearing to ease, her tone could influence late-day sentiment and shape expectations ahead of next week’s data releases.

Technical Outlook

S&P 500 Futures
Trading above the 50-day MA (~5,589) and 200-day MA (~5,875), both of which now act as support. There is no resistance until the all-time high at 6,236.50.

Nasdaq 100 Futures
Holding above the 200-day MA (~20,695), which serves as key support. The next resistance is the all-time high at 22,656.75.

Dow Futures
Currently above the 50-day MA at 41,233, which acts as support, and below the 200-day MA at 43,040, which remains the primary resistance.

Outlook

Chip stocks remain the market’s driving force, bolstered by easing trade rules and overseas demand. With earnings from Cisco and Dynatrace on deck, and key IPOs hitting the tape, traders will gauge whether the rally has legs. Mary Daly’s remarks could inject late-session volatility if she signals a shift in Fed tone. Focus remains on whether key index levels hold, confirming trend continuation.

More Information in our Economic Calendar.