US stock futures muted as rate jitters persist, tech earnings awaited

Investing.com-- U.S. stock index futures tread water in evening deals on Wednesday following a negative session on Wall Street amid persistent concerns over higher-for-longer interest rates. 

A mixed batch of first-quarter earnings also kept traders on edge, ahead of more key reports- particularly from the technology sector- due this week. 

But Wall Street was reeling from an extended rout in the technology sector, with chipmakers seeing heavy selling on Wednesday following disappointing earnings from industry majors.

S&P 500 Futures steadied at 5,064.75 points, while Nasdaq 100 Futures rose 0.1% to 17,682.75 points by 19:40 ET (23:40 GMT). Dow Jones Futures steadied at 5,022.21 points. 

Wall St battered by chipmaker rout as ASML earnings disappoint

Wall Street indexes fell for a fourth consecutive session on Wednesday, hit by steep losses in chipmaking stocks following weaker-than-expected earnings from Dutch semiconductor technology giant ASML Holding NV (AS:ASML). ASML’s U.S. shares (NASDAQ:ASML) slid 7% during the session.

Market darling NVIDIA Corporation (NASDAQ:NVDA) slid nearly 4% during the session, but rose about 0.5% in aftermarket trade. Smaller peer Advanced Micro Devices Inc (NASDAQ:AMD) lost 5.8% and was up 0.2% after-hours. 

ASML acts as somewhat of a bellwether for chip demand, given that it manufactures advanced lithographic equipment used in making semiconductors.

Broader markets were pressured by a spike in Treasury yields, following signs of sticky U.S. inflation and hawkish signals from the Federal Reserve. 

The S&P 500 fell 0.6% to 5,022.21 points on Wednesday, while the NASDAQ Composite lagged its peers with a 1.2% decline to 15,683.37 points. The Dow Jones Industrial Average ended down 0.1% at 37,753.31 points. 

Netflix, TSMC earnings on tap

Focus was now squarely on upcoming earnings reports. For the chip sector, earnings from TSMC (TW:2330) (NYSE:TSM)- the world’s largest contract chipmaker- were due during the Asian session on Thursday.

TSMC is largely regarded as a bellwether for global chip demand, and is expected to clock stronger earnings on the back of increasing demand artificial intelligence-linked chips.

Video streaming giant Netflix Inc (NASDAQ:NFLX) is also set to report first-quarter earnings on Thursday, as is asset manager Blackstone Inc (NYSE:BX). 

Aftermarket movers: Micron, Alcoa rise, Equifax tumbles 

Among major aftermarket movers, aluminum producer Alcoa Corp (NYSE:AA) rose nearly 3% after its earnings topped estimates, and it flagged steady production in 2024.

Micron Technology Inc (NASDAQ:MU) was an outlier among chipmaking stocks, rising over 2% in aftermarket trade following reports that the memory chip maker was set to receive over $6 billion in government grants. The stock had fallen 4.5% during the session.

Equifax Inc (NYSE:EFX) plummeted nearly 10% after posting weaker-than-expected guidance. 

Casino operator Las Vegas Sands Corp (NYSE:LVS) fell 3% despite beating profit expectations, as underperformance in its Macau operations remained a point of concern.