Jan 28 (Reuters) - U.S. stock index futures rose on Wednesday, helped by gains in chip stocks, while investors geared up for quarterly earnings results of some of the so-called "Magnificent Seven" companies and a Federal Reserve rate decision.
In premarket trade, Nvidia climbed 1.7%, Intel jumped 6.6%, and Micron and Microchip Technology each gained over 5%. SK Hynix, a key Nvidia supplier, reported a record quarterly profit and ASML booked its highest ever fourth-quarter orders, igniting a tech rally
from Europe to Asia.
Texas Instruments jumped 8% after the analog chipmaker forecast first-quarter revenue and profit above Wall Street estimates.
Meta, Microsoft and Tesla report after the bell, kicking off the so-called "Magnificent Seven" earnings that have driven the AI trade, powering markets to record levels.
With lofty valuations driving rotation into small‑caps, the group's capital plans will be closely watched as investors question whether AI spending still justifies elevated prices.
Meta slipped 0.4%, while Microsoft and Tesla was up 0.2% each. Bellwether IBM, also due to report after the bell, was flat.
Among consumer names set to report before the bell, Starbucks slipped 0.4%, while VF Corp was flat and AT&T gained 0.3%.
At 05:40 a.m. ET, Dow E-minis were up 28 points, or 0.06%, S&P 500 E-minis were up 25.25 points, or 0.36%, and Nasdaq 100 E-minis were up 234 points, or 0.9%.
FED WATCH
The Federal Reserve convenes later in the day for its rate decision, with policymakers widely seen keeping rates unchanged at 3.5%–3.75%. Traders will watch out for the Fed's statement and Chair Jerome Powell's remarks, for clues on the future rate trajectory.
The U.S. central bank, which has recently started receiving real-time data on the economy's health after a partial government shutdown last year, is navigating policy while peering through an increasingly politicized fog.
This meeting arrives in the backdrop of a Justice Department inquiry launched earlier this month involving Powell and President Donald Trump's hints that a successor will be named "soon".
Among other stocks, Seagate Technology jumped 11.3% after it forecast third-quarter revenue and profit above Wall Street expectations.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Krishna Chandra Eluri)
