Dow Futures are edging upward, amidst a decline in software stocks and the anticipation of quarterly results from major players in the technology sector. The owner of Google is anticipated to disclose its most recent earnings following the market’s close, with investors closely monitoring its expenditure strategies regarding artificial intelligence. In other developments, Federal Reserve Governor Stephen Miran has reportedly resigned from his position as a White House economic adviser. Meanwhile, a report on U.S. services sector activity is anticipated, and gold prices are climbing back toward $5,100 per ounce.

Dow futures indicated a general upward trend on Wednesday, as investors evaluated the deteriorating sentiment surrounding software stocks linked to artificial intelligence and anticipated earnings reports from major technology companies. By 02:53, the Dow futures contract had increased by 134 points, representing a rise of 0.3%. Similarly, S&P 500 futures were up by 19 points, also reflecting a 0.3% gain, while futures advanced by 57 points, equating to a 0.2% increase. The primary indices experienced a decline in the previous session, adversely affected by AI-favored stocks, both of which fell by nearly 3%. Sentiment surrounding software stocks has recently been pessimistic, as investors express concerns regarding competition from emerging AI models within the sector. Concerns intensified following the launch of a new legal analysis tool by AI group Anthropic, resulting in a significant decline in the stock prices of publishing houses and data firms, including Legalzoom.com. The repercussions extended to other software companies, including and , both of which experienced declines exceeding 10%. Two S&P indices that monitor software, financial data, and exchange companies experienced a collective decline of approximately $300 billion in market value, according to reports. “[T]he significant narrative was the decline in technology, as the market progressively perceives AI as a detrimental force, with firms tied to the robust infrastructure development no longer reaping rewards, while apprehensions regarding AI disruption and displacement ravage extensive segments of the market,” analysts noted in a report. Nonetheless, the outlook for stocks was not entirely negative. A surge in shares of the big-box retailer, which has captured more market share by enticing cost-conscious shoppers, brought the company’s market value up to $1 trillion for the first time.

In light of the recent upheavals in the software sector, market participants will be focusing on the crucial earnings report from the technology giant Alphabet following the market’s close. Significant focus is expected to center on the costly venture of the parent company of Google into artificial intelligence. Similar to numerous other large-cap technology companies, Alphabet has detailed intentions to invest significantly in its artificial intelligence initiatives, allocating billions of dollars for the development of data centers and chips that support this emerging technology. In the final quarter of 2025, Alphabet experienced a notable increase of approximately 29%, primarily driven by a positive response to its latest Gemini AI model and a partnership with Apple aimed at enhancing the functionality of the iPhone-maker’s Siri voice assistant. Analysts referenced by Reuters indicate that Alphabet has taken the lead in the competition to develop and ultimately monetize AI, outpacing competitors such as Microsoft, which had previously benefited from substantial investments in firms producing these advanced models. “Google sentiment is (justifiably) very bullish as the company’s core advertising businesses continue to perform very well while it emerges as the best positioned firm in the entire AI ecosystem,” the analysts noted. However, they indicated that it remains uncertain whether the returns will contribute to stabilizing AI sentiment, and could potentially intensify concerns regarding the robustness of the “ecosystem” surrounding competitor OpenAI. Further insight into the state of AI and technology could be anticipated on Thursday, as e-commerce giant Amazon is scheduled to release its report. In addition to technology, pharmaceutical company Eli Lilly has established a significant presence in the profitable weight-loss medication sector and is poised to be a key player in the earnings announcements scheduled before the commencement of U.S. trading later today.

Federal Reserve Governor Stephen Miran has announced his resignation from his position as an economic adviser for the White House, fulfilling a commitment he made to the U.S. Senate, as reported. The decision enables Miran, appointed by President Donald Trump last year to temporarily occupy a vacant position on the Fed’s Board of Governors set to conclude on January 31, to continue his tenure at the central bank until his successor is confirmed. Source has indicated that Kevin Warsh is the probable successor, as he has been nominated by Trump to assume the role of the next Federal Reserve Chair. “I assured the Senate that should I remain on the Board beyond January, I would officially resign from the Council,” Miran stated. Miran expressed that he considered it “important to stay true to my word.” Since joining the Fed’s board, Miran has championed significant interest rate cuts, frequently diverging sharply from the perspectives of fellow members of the 12-person committee. The position aligns with Trump’s appeal for the Federal Reserve to implement swift and substantial rate cuts to stimulate economic growth. Miran’s position at the Fed has attracted criticism from certain Democratic senators, who contend that the latest Fed policymaker is effectively championing the interests of the Republican president. In correspondence addressed to Miran, the senators urged that he step down from the Federal Reserve’s board “immediately.”

In the previous month, the central bank decided to maintain interest rates within the range of 3.5% to 3.75%, notwithstanding the objections raised by Miran and Fed Governor Christopher Waller. In light of indications pointing to a softening labor market, inflation, which constitutes the second component of the Fed’s dual mandate, has remained persistently above the 2% target set by policymakers. In light of these trends and the overall resilience of the U.S. economy, it seems that Fed members exhibited minimal urgency to continue the aggressive rate cuts implemented multiple times in 2025. While a significant data point that could alter this narrative – the monthly jobs report – was delayed earlier this week, other indicators are expected to come under examination. One of these will serve as an indicator of January activity within the U.S. services sector, which constitutes over two-thirds of U.S. output. The Institute for Supply Management’s non-manufacturing purchasing managers’ index is projected to register at 53.5, a decline from the previous figure of 54.4. A figure exceeding 50 generally signifies an expansion in services.

Gold prices increased, approaching $5,100 an ounce on Wednesday, driven by escalating tensions between the U.S. and Iran, which heightened the demand for safe-haven assets like bullion. The yellow metal continued to appreciate following a significant rebound from recent declines observed on Tuesday. Rising tensions between the U.S. and Iran have significantly influenced demand for safe-haven assets, particularly following reports that the U.S. engaged an Iranian drone in the Arabian Sea. In a separate development, Iranian gunboats were observed nearing a U.S.-associated tanker in the Strait of Hormuz. The two events have somewhat diminished the assertions from Tehran and Washington regarding their intention to engage in discussions this Friday. The announcement regarding the discussions provided a degree of comfort to the markets, subsequently reducing the demand for gold as a safe haven asset.