Dow Futures experience a modest increase, as analysts focus on a possible transformation in the dynamics of the artificial intelligence market. Dell Technologies raises its annual guidance in response to a sustained increase in demand for AI servers, while Deere & Co, a farm-equipment group, is set to announce its most recent quarterly results. The Federal Reserve is set to publish its “Beige Book,” which contains insights from businesses and households, amid growing speculation regarding a potential interest rate cut in December.

Dow futures indicated an upward trajectory on Wednesday, following analysts’ observations of an increasing fragmentation within the AI sector during the prior session. By 02:28, the Dow futures contract had increased by 135 points, or 0.3%, the S&P 500 futures had gained 28 points, or 0.4%, and the Nasdaq 100 futures had progressed by 143 points, or 0.6%. The primary indices experienced an uptick on Tuesday, with the blue-chip Dow Jones Industrial Average achieving its most significant daily increase since August. The benchmark S&P 500 and the tech-heavy Nasdaq Composite increased by 0.9% and 0.7%, respectively. Alphabet’s shares garnered significant attention, rising by 1.5% and moving closer to a $4 trillion market valuation, spurred by a media report indicating discussions with Meta regarding the provision of Google’s AI-centric chips for the data centers of the Facebook parent company. Google is actively pursuing its position as a manufacturer of AI processors, in part to diminish its dependence on external suppliers. Analysts indicated that this could signify increased competition for Nvidia, the semiconductor company that has been pivotal in the multi-year AI boom. The news has the potential to intensify concerns regarding a series of circular transactions within the AI sector, a significant number of which are centered on Nvidia’s generosity. Nvidia’s stock price decreased by 2.6%, highlighting a division between the two major players that has become evident this month. As of November, Alphabet’s shares have increased by 15%, while Nvidia’s have decreased by 12%. In other developments, a new set of U.S. economic indicators — postponed due to a recent federal government shutdown — revealed that retail sales increased at a rate below expectations in September, whereas a measure of producer prices experienced a recovery. The data provided minimal impact on expectations regarding the Federal Reserve’s forthcoming interest rate decision, as investors continue to speculate that the central bank will focus on a deteriorating labor market rather than persistent inflationary pressures.

Shares of Dell Technologies experienced a rally exceeding 4% in after-hours trading, driven by a revenue and profit outlook for the current quarter that surpassed expectations. Driven by robust demand for its AI servers, frequently featuring Nvidia’s chips, Dell has revised its fourth-quarter revenue expectations to a range of $31 billion to $32 billion, surpassing LSEG estimates reported, which stood at $27.59 billion. Adjusted income is projected to be $3.50, exceeding expectations of $3.21. Dell has also increased its annual financial projections. Projected revenue for fiscal 2026 is anticipated to range between $111.2 billion and $112.2 billion, compared to an earlier forecast of $105 billion to $109 billion. The guidance for adjusted earnings per share has been raised to $9.92. During a post-results call, Chief Operating Officer Jeff Clarke stated that Dell would “do everything” it can to address price increases following a rise in production costs. Concerns have been expressed by investors regarding the potential impact of these expenses on the company’s margins, alongside the increasing competition posed by rival server manufacturers such as Super Micro Computer. Nonetheless, Dell, with its diverse customer base that includes the U.S. Department of Energy and CoreWeave, has forecasted that AI server shipments will generate $25 billion in revenue for its fiscal 2026, an increase from the earlier estimate of $20 billion. New orders contributed to an increase in the third-quarter AI server backlog, which reached $18.4 billion.

One of the prominent entries on the earnings agenda for Wednesday will be agricultural equipment firm Deere & Co. estimates indicate that the company is projected to report fiscal fourth-quarter net income of $1.05 billion alongside revenue of $11.55 billion. In August, reports shows a decline in third-quarter profit and cautioned that it would experience a more significant impact from extensive U.S. tariffs than previously expected, as these levies clouded the prospects for farm-equipment providers already contending with subdued demand stemming from a downturn in crop prices in North America. However, analysts have indicated that the prevailing pessimism might be beginning to dissipate. U.S. President Donald Trump and Chinese counterpart Xi Jinping reached a trade agreement last month. Meanwhile, reductions in U.S. interest rates in September and October, with potential further cuts in December, may enhance the conditions for construction spending.

A report from the Fed, which aggregates insights from businesses and households regarding the economy, is poised to be a focal point on the economic calendar. In light of the limited availability of official data amid the shutdown, analysts have indicated that the Fed’s “Beige Book”—a collection of survey results, interviews, and other qualitative insights published two weeks before the central bank’s most recent rate decision—will assume heightened significance as a resource for policymakers in adjusting borrowing costs. In October, the Beige Book indicated that although U.S. economic activity remains generally stable, there are emerging signals of potential softening, notably through rising layoffs and a reduction in spending among lower- and middle-income households. “The labor market remains subdued and […] there is no indication suggesting a recovery,” Fed Governor Christopher Waller stated in an interview.

Oil prices have stabilized close to a level not seen in over a month; however, additional declines remain plausible due to an anticipated oversupply and the possibility of a peace agreement between Russia and Ukraine. Brent futures declined by 0.2%, settling at $61.65 per barrel, while U.S. West Texas Intermediate crude futures decreased by 0.5%, reaching $57.83 per barrel. Both crude benchmarks experienced a decline on Tuesday following remarks from Ukrainian President Volodymyr Zelenskiy, who informed European leaders of his readiness to progress a U.S.-backed framework aimed at concluding the conflict with Russia. This development could potentially lead to the reintroduction of Russian crude into the global supply chain. However, Trump seemed to retreat from a Thanksgiving deadline for Ukraine to finalize a peace deal with Russia on Tuesday, stating merely that progress was being made in the negotiations. In the latest report, U.S. crude stocks experienced a decline last week, with the official stockpile data from the Energy Information Administration expected to be released later in the session.