Another key focus for markets is the quarterly results from AI chip leader Nvidia, widely seen as the next major test of the AI-fueled rally. Any sign of slowing growth could rekindle doubts over the boom's sustainability and set the tone for markets for the rest of the week. Its shares were up 0.2% in premarket trading.
"Nvidia has long become the bellwether for AI-related stocks, and its recent underperformance relative to other U.S. semiconductors (is) a clear signal of market concerns about the AI investment related boom," said Marc Ostwald, chief economist and global strategist at ADM Investor Services.
A cutback on cyclical spending and concentration of Nvidia's revenue streams could overshadow robust results, Ostwald said.
Bumper results could also deepen the divide between software stocks that have taken a beating this year, and semiconductors, which have been capitalized heavily on the AI euphoria.
Shares of Intuit dropped 11.7% after the TurboTax maker forecast annual revenue below Wall Street expectations.
Other software stocks also came under pressure, with Adobe down, ServiceNow and Atlassian falling more than 2% each.
At 05:26 a.m. ET, Dow E-minis were up 31 points, or 0.06%, S&P 500 E-minis were down 7.5 points, or 0.10%, and Nasdaq 100 E-minis were down 76.25 points, or 0.26%.
Earnings from a slew of consumer companies, too, will be parsed.
Meanwhile, Iran said it has restarted talks with Oman to manage the Strait of Hormuz, improving broader risk appetite.
Worries over higher-for-longer oil prices, rising government debt and inflation expectations pushed Treasury yields to multi-year highs last week, but they retreated after the Treasury announced support measures.
Higher yields hammered tech stocks earlier in the week, but they recovered in the previous session, helping close Wall Street higher.
An uncertain macro environment and short-lived relief from the Treasury's measures have put the focus on Fed Chair Kevin Warsh's speech at the Jackson Hole symposium on Friday for clues on where the central bank stands on the rate path.
"A dovish surprise, focused on weakening growth or labor market risks, would see lower real bond yields, dollar weakness while equities could fare well," said Kevin Thozet, investment committee member at Carmignac.
"A hawkish surprise, with explicit concern over inflation or a willingness to hike, would push short-term yields higher... A speech leaving investors unconvinced, would see the pressure on the long end intensify."
Markets cautious ahead of inflation data and Nvidia results
U.S. stock index futures were little changed on Wednesday as investors stayed cautious ahead of AI bellwether Nvidia's earnings and a closely watched inflation report that could influence interest-rate expectations.
The Personal Consumption Expenditures report, the Federal Reserve's preferred inflation gauge, is expected to show price pressures climbed to 3.6% in July. A second estimate of economic growth is also due later in the day.
Traders have priced in one 25-basis-point hike in interest rates in 2026, according to LSEG data, though an in-line consumer inflation reading has lowered the odds of a September increase.
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