U.S. Futures Climb After Tech Rally

Benzinga reported Wednesday that U.S. S&P 500 futures climbed in early trading. The move followed a Tuesday session that saw the Nasdaq advance sharply on broad tech strength. The Dow Jones finished that session in the red, creating a split picture heading into Wednesday.

Micron Crosses the $1 Trillion Mark

The standout moment of Tuesday’s session came from Micron Technology (NASDAQ: MU). The chipmaker surpassed a $1 trillion market capitalization for the first time in its history. That milestone anchored a powerful rally across the information technology sector. Materials and industrials stocks also posted notable gains on Tuesday. Consumer staples and energy were the only major sectors to close lower.

Premarket futures Wednesday reflected the positive tone. Dow Jones futures added roughly 0.39%. S&P 500 futures gained 0.28% and Nasdaq 100 futures rose 0.42%. Russell 2000 small-cap futures outpaced the group with a 0.67% move higher.

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Zscaler Slips on Weak Guidance

Not every name participated in the celebration. Zscaler Inc. (NASDAQ: ZS) dropped sharply after management issued a current-quarter revenue outlook that missed analyst expectations. The guidance miss overshadowed otherwise solid underlying results and weighed on the cybersecurity firm’s stock.

Box Inc. (NYSE: BOX) also slid roughly 2.4% in premarket trading despite beating first-quarter estimates. The cloud software company also raised its full-year outlook, but that failed to satisfy investors. Braiin Ltd. (NASDAQ: BRAI) gave back a large chunk of Tuesday’s 74% surge, falling more than 13% after euphoria around a major UK contract with Switchcraft cooled.

Fed Bets Stay Firmly on Hold

Rate expectations remained locked ahead of June’s Federal Reserve meeting. The CME Group’s FedWatch tool showed markets pricing a near-certain probability of no change to current interest rates. The 10-year Treasury yield held around 4.46%, while the 2-year sat near 4.02%.

AI Wave Reshaping Corporate Bond Markets

A structural shift is drawing attention in fixed income. Lawrence Gillum, Chief Fixed Income Strategist at LPL Financial, told Benzinga that large technology companies are increasingly turning to debt markets rather than internal cash flows to fund AI buildouts. Gillum projects total U.S. investment-grade bond issuance could hit a record range of $1.8 trillion to $2.25 trillion this year. He cautioned that concentration risk inside corporate bond indexes is rising as a result.

All eyes turn to earnings after the bell. HP Inc. (NYSE: HPQ) and Salesforce Inc. (NYSE: CRM) are both set to report quarterly results Wednesday afternoon.

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