US futures are flat and global stocks gain after optimism about AI sends Wall Street higher

U.S. futures remained flat Wednesday following President Donald Trump’s State of the Union address, while global markets showed largely positive momentum, particularly in Asia where technology stocks continued their upward trajectory.

European markets opened with modest gains as France’s CAC 40 rose 0.3% to 8,542.30, Germany’s DAX added 0.2% to 25,024.38, and Britain’s FTSE 100 posted a stronger 0.8% increase to 10,763.15. Meanwhile, U.S. futures showed minimal movement with both S&P 500 and Dow Jones Industrial Average futures up just 0.1%.

The Japanese market delivered standout performance as the Nikkei 225 surged 2.2% to close at 58,583.12, briefly touching a record high during the session. The robust gains reflected investor optimism surrounding the artificial intelligence sector that has been driving global tech markets in recent months.

Chinese markets also moved higher, with Hong Kong’s Hang Seng gaining 0.7% to 26,765.72 and the Shanghai Composite adding 0.7% to close at 4,147.23. South Korea’s Kospi jumped 1.9% to 6,083.86, continuing to benefit from strong global demand for semiconductor chips.

Taiwan’s Taiex index posted an impressive 2.1% gain, largely propelled by a 2.5% surge in shares of Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract manufacturer of computer chips. Australia’s S&P/ASX 200 also performed well, rising 1.2% to 9,128.30.

In his State of the Union address, President Trump emphasized job creation, manufacturing growth, and overall economic strength, arguing that the economy is performing better than many Americans perceive. Notably, he devoted less attention to cost-of-living concerns despite polling data suggesting that his handling of economic and household financial issues has become a potential political vulnerability.

Prior to the speech, U.S. markets had already shown positive momentum on Tuesday, with the S&P 500 climbing 0.8%, the Dow Jones Industrial Average adding 0.8%, and the Nasdaq composite rising 1%.

Market participants are now turning their attention to semiconductor giant Nvidia’s upcoming earnings report, expected later Wednesday. The quarterly results could significantly impact market sentiment as investors assess whether the substantial investments in artificial intelligence technology will deliver the anticipated returns.

Expectations for Nvidia remain exceptionally high, continuing a trend that began when the company’s chipsets emerged as the preferred hardware for building AI systems. The report will cover Nvidia’s fiscal quarter from November through January, a period during which AI development continued to accelerate across multiple industries.

In commodities, energy markets showed modest gains with benchmark U.S. crude oil adding 40 cents to reach $66.03 per barrel. Brent crude, the international standard, rose 42 cents to $71.00 per barrel. The modest uptick in oil prices comes amid ongoing concerns about global demand and production levels.

Currency markets saw the U.S. dollar strengthen against the Japanese yen, rising to 156.42 yen from 155.91 yen. The euro gained slightly against the dollar, trading at $1.1792 compared to $1.1774.

The global market rally, particularly in tech stocks, reflects continued investor confidence in the transformative potential of artificial intelligence technologies. As companies across various sectors increase their investments in AI capabilities, semiconductor manufacturers and technology firms developing AI applications have seen sustained investor interest despite concerns about valuations and the pace of practical implementation.

The focus on Nvidia’s earnings highlights how a single company’s performance can now influence broader market sentiment, underscoring the concentrated nature of recent tech-driven market gains.