U.S. stock futures were largely unchanged Wednesday as investors awaited Nvidia’s highly anticipated earnings report, a release widely viewed as a litmus test for the sustainability of artificial intelligence-driven capital spending. After a volatile start to the week marked by AI disruption fears and tariff uncertainty, markets appear to be pausing ahead of what could be the most consequential corporate update of the quarter.

Wall Street Rebounds as AI Panic Eases

In Tuesday’s regular session, the Dow Jones Industrial Average rose 0.76%, the S&P 500 gained 0.77%, and the Nasdaq Composite advanced 1.04%. The rebound followed Monday’s selloff, which had been fueled by concerns that generative AI tools could rapidly erode traditional software and services business models.

Technology stocks led the recovery. AMD surged 8.8% after Meta announced a multiyear agreement to deploy 6 gigawatts of AMD GPUs across its AI data center footprint. The deal reinforced the narrative that hyperscaler investment in AI infrastructure remains intact despite rising scrutiny over capital expenditure levels.

Software names also participated in the bounce. Salesforce climbed 4.1% and IBM rose 2.7%, as analysts pushed back against recent skepticism surrounding legacy service providers. Meanwhile, DocuSign added 2.6% following news that Anthropic’s Claude Cowork tool will integrate with its platform, suggesting AI enhancements may complement — rather than displace — established enterprise ecosystems.

Index Levels and Valuation Context

The US500 index stood at 6,899 points on February 25, 2026, up 0.13% from the prior session. While the benchmark has slipped 0.73% over the past month, it remains 15.84% higher than a year ago. The index recently touched an all-time high of 7,002.58 in January 2026, underscoring how much optimism has already been priced into equities.

This positioning creates a delicate balance. On one hand, strong AI-driven earnings growth continues to justify elevated multiples in select segments. On the other, any signal of moderation in spending or margin pressure could trigger swift multiple compression, particularly given Nvidia’s outsized influence across semiconductor and data center supply chains.

What Nvidia Means for the Broader Market

Nvidia’s results are expected to clarify whether AI-related demand remains structurally durable or is entering a phase of normalization. Investors are especially focused on forward guidance, order backlogs, and commentary regarding hyperscaler capex discipline.

The broader market implications are significant. A strong report could reinforce confidence in semiconductor suppliers and cloud infrastructure plays, supporting the Nasdaq’s leadership. Conversely, any sign of demand deceleration may revive fears of an AI spending peak, reintroducing volatility across technology, software, and related cyclicals.

Beyond corporate earnings, markets remain attentive to macro crosscurrents including tariff developments and Federal Reserve rate expectations. However, in the near term, Nvidia’s performance stands as the primary catalyst capable of reshaping sentiment.

For now, futures stability suggests cautious optimism. Whether that steadiness holds will depend on whether AI’s most influential supplier confirms the narrative of sustained structural growth — or introduces a more nuanced outlook that forces investors to recalibrate expectations.