Jan 28 (Reuters) - The S&P 500 was poised to open close to the 7,000 mark at Wednesday's open, fueled by a gain in chip stocks and as investors geared up for a Federal Reserve rate decision as well as a slew of Big Tech earnings.
Futures on the benchmark index traded up 0.2% at 7,022.5 points, signaling the index would hit a record high at open.
In premarket trade, Nvidia (NVDA.O), climbed 1.9%, Intel (INTC.O), jumped 5.4%, Micron (MU.O), rose 4% and Microchip Technology (MCHP.O), gained 6.5%. 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.
The Fed convenes later in the day for its rate decision, with policymakers widely expected to keep 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 S&P 500 had rebounded and touched a record high on Tuesday, with attention shifting to the earnings story after U.S. President Donald Trump's threats to acquire Greenland had led to bouts of sell-offs earlier this month, sending safe-haven gold soaring.
"As we move into earnings season, there is a sense of increasing optimism. Tech is always closely watched because people want to see whether it can continue performing the way it has in recent history," said Louise Dudley, portfolio manager for global equities at Federated Hermes.
At 08:16 a.m. ET, Dow E-minis were down 14 points, or 0.03%, and Nasdaq 100 E-minis were up 211 points, or 0.81%.
The U.S. central bank, which 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 Trump's hints that a successor will be named "soon".
Markets see the first rate cut coming only in June, according to CME's FedWatch tool.
"MAG 7" KICKS OFF EARNINGS
Meta (META.O), Microsoft (MSFT.O), and Tesla (TSLA.O), report after the market closes, 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 undervalued areas of the market, the group's capital plans will be closely watched as investors question whether AI spending still justifies elevated prices.
Texas Instruments (TXN.O), surged 7.4% after the analog chipmaker forecast first-quarter revenue and profit above Wall Street estimates. Starbucks (SBUX.O), jumped 8% after posting a bigger-than-expected increase in first-quarter comparable sales. AT&T (T.N), climbed 2.9% after the U.S. carrier projected annual profit above market expectations.
In industrials, GE Vernova (GEV.N), raised its annual revenue forecast, but shares slipped 2.4%. Textron (TXT.N), fell 3% after guiding fiscal profit below estimates, while Otis (OTIS.N), dropped 6% after fourth-quarter revenue missed expectations.
Meta slipped 0.3%, while Microsoft ticked up 0.1% and Tesla gained 0.6%. Bellwether IBM (IBM.N), opens new tab, also due to report after the market closes, was marginally up.
Seagate Technology (STX.O), jumped 10.4% after it forecast third-quarter revenue and profit above Wall Street expectations. Rival Western Digital (WDC.O), rose 7.7%.
Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru; Editing by Krishna Chandra Eluri
