Futures

Nasdaq, S&P 500 futures pop while Dow holds steady as Alibaba spreads AI cheer

Web Desk Send an email September 24, 2025
0 3 4 minutes read

US stocks rose before the bell on Wednesday, eyeing a return to their record-setting rally as Alibaba’s (BABA) spending plans and Micron Technology’s (MU) results lifted AI prospects.

Nasdaq 100 futures (NQ=F) moved up roughly 0.3%, while those on the S&P 500 (ES=F) nudged 0.2% higher. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, were up about 0.1%.

A turnaround in tone on techs is helping stocks shape up for a slight comeback, after the major gauges snapped a win streak on Tuesday amid losses for “Magnificent Seven” megacaps.

Alibaba stock jumped over 9% in premarket as investors welcomed the Chinese tech giant’s pledge to hike its AI spending beyond its original $50 billion target. The boost is needed for Alibaba to keep pace as global investment in AI surges to $4 trillion, its CEO said. At the same time, Micron’s stronger-than-expected quarterly earnings delivered another positive signal for the AI trade, helping lift shares slightly.

Debate over the prospects for US interest-rate cuts — the big focus for markets right now — appeared to keep a lid on gains. Comments from Federal Reserve officials this week have hinted at growing disagreement on what the path of policy should be, given the cracks showing in the labor market.

Fed Chair Jerome Powell reiterated in a speech on Tuesday that the central bank would proceed cautiously on further rate cuts, even as he left the door open to more easing. He also described stocks as “fairly highly valued.”

Wall Street is now counting down to the release of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, on Friday. Markets are watching for reassurance that inflation isn’t posing a threat to high expectations for two more rate cuts this year.

Before that, updates on weekly mortgage applications and August home sales on Wednesday will provide a window into the housing market and the US economy more broadly.

LIVE 11 updates

  • The Fed’s unity is already fraying

    Last week, the Fed voted to cut interest rates in a decision that expressed unity despite a sole dissent. But a mere week later, commentary from central bankers is foreshadowing disagreement to come, noted Yahoo Finance’s Hamza Shaban.

    He reports in today’s takeaway from Morning Brief:

    Read more here.

  • Good morning. Here’s what’s happening today.

  • Jenny McCall

    Premarket trending tickers: Lithium Americas, GM and Micron

    Here’s a look at some of the top stocks trending in premarket trading:

    Lithium Americas (LAC) stock soared 64% in premarket trading on Wednesday after the Trump administration said it is seeking an equity stake as much as 10% in the company.

    General Motors (GM) stock rose 3% before the bell on Wednesday after Citi increased its price target for the stock to $75 from $61.

    Micron (MU) stock 1% in premarket trading on Wednesday following the release of its fourth-quarter earnings report the day prior.

  • Brian Sozzi

    Important point from Micron on its earnings call

    Micron Technology (MU) did its part this week to contribute to the AI bullishness.

    Here’s what the memory chipmaker’s execs said on an earnings call last night, when asked about the demand outlook:

    Couple this with the $100 billion Nvidia (NVDA) and OpenAI (OPAI.PVT) deal this week, and Alibaba (BABA) saying today it would spend more than $50 billion over three years on AI models, and it’s hard to play the bear hand on AI names right now.

  • Brian Sozzi

    Time to read up on a government shutdown (again)

    It has been a hot minute since markets had to worry about a government shutdown.

    We have been here before, and a shutdown is usually averted last minute. That’s why the market tends to take the ordeal in stride until it absolutely can’t.

    Helpful context on the latest brewing debacle from Deutsche Bank strategist Jim Reid:

  • Brian Sozzi

    It has been a September for investors

    A lot has been thrown at the market so far in September — a month that seasonally isn’t often great from a historical perspective.

    But here we are, getting bullish AI comments from Alibaba (BABA) and Nvidia (NVDA) this week, and a rate cut last week.

    Good point this morning from the host of the Yahoo Finance Trader Talk podcast, Kenny Polcari:

  • Brian Sozzi

    Eyes on: General Motors

    Two bullish calls this week on General Motors (GM) is enough to get my attention!

    UBS this morning upgraded GM to Buy, saying it sees a better-than-expected margin outlook. I heard the same thing from Citi’s Michael Ward in an upbeat note on Monday. Tariffs are still a risk to GM, but the automaker appears to have managed the situation well, from a margin standpoint.

    Some of Ward’s thinking from his segment on Yahoo Finance on Monday is below. Keep an eye on Ford (F) here as well. I am headed to Detroit early next week for a CEO conference the company is holding, and could get commentary on near-term demand trends and the near-term margin outlook.

  • Big Tech’s AI ambitions are straining the US power grid. Natural gas might be its answer.

    The world’s biggest energy companies are planning for a potential natural gas boom, given the heavy power demand predicted to come from growth in AI infrastructure.

    Yahoo Finance’s Jake Conley reports:

    Read more here.

  • Alibaba hikes AI budget above $50 billion, stock surges

    Alibaba (BABA, 9988.HK) shares surged after its CEO revealed the Chinese tech giant plans to ramp up AI spending past an original $50 billion-plus target.

    The stock jumped around 9% in US premarket as Eddie Wu joined the ranks of tech leaders pledging ever-greater investment to compete in AI.

    Bloomberg reports:

    Read more here.

  • Markets across Asia dip in line with end to Wall Streets record-setting rally

    Asian markets saw losses overnight as the region reacted to Wall Street’s pause in a three-week rally.

    AP Finance reports:

    Japan’s benchmark Nikkei 225 (^N225) lost 0.4% in morning trading to 45,300.30. Australia’s S&P/ASX 200 (^AXJO) slipped 1.0% to 8,756.30. South Korea’s Kospi (^KS11) dropped 1.1% to 3,448.44. Hong Kong’s Hang Seng (^HSI) rose 0.6% to 26,305.02, while the Shanghai Composite gained 0.2% to 3,829.91.

    U.S. stocks took a pause from their relentless rally, with the S&P 500 dipping 0.6%, the Dow Jones Industrial Average falling 88 points, or 0.2%, and the Nasdaq composite sinking 0.9%.

    It’s the first pullback for the indexes after the trio set all-time highs in each of the last three days.

    Read more here.

  • Oil prices rise following reports of US stockpiles depleting

    Reuters reports:

    Read more here.

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Web Desk Send an email September 24, 2025
0 3 4 minutes read

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