Nasdaq 100 futures are gaining ground. AI optimism has returned as SpaceX and Super Micro results comfortably surpassed expectations. The next earnings release in focus is Meta’s.

Nasdaq futures are recovering. Following Tuesday's flat close, forecast-beating earnings from AI stocks are rebuilding confidence in the AI trade after last week's sell-off.

Above $110 a barrel, Brent has not stopped the return of optimism. Attacks around the Strait of Hormuz are intensifying supply concerns, while U.S. data signal a further drawdown in crude inventories. Oil's rise is also heightening inflation concerns. Technology shares could face pressure if interest rates stay higher for longer, but strong earnings are supporting sentiment for now.

8% Pre-Market Gain as SpaceX Beats Forecasts

Q3 earnings and revenue substantially exceeded expectations across SpaceX's divisions, lifting the shares 8% in pre-market trading.

An almost doubling of subscribers supported 69% revenue growth at Starlink, the company's satellite internet service. The rocket division's revenue grew 6% year-on-year. At Superintelligence, SpaceX's AI division encompassing its data centre rental business and Grok chatbot, revenue rose tenfold.

A year-earlier loss of $1.1 billion gave way to Q3 net income of $4.4 billion at SpaceX. Revenue of $14.6 billion substantially surpassed Wall Street estimates of $12.87 billion. EPS was $0.35 against the expected $0.15, more than twice the forecast.

Data centre capacity rental deals with Anthropic, Google and Reflection AI carry a combined annual revenue value of $28 billion. The results demonstrate how far SpaceX has expanded in the data centre market.

Access to low-cost borrowing is not universal, a significant consideration given the expense of building data centres. Last week, worries about CoreWeave's debt repayment capacity sent its bond yields above 15%. SpaceX, in contrast, has bond yields of around 7%, giving it a considerable financing advantage. With $90 billion in cash as well, the company is better positioned to expand while rivals face higher borrowing costs.

An imminent lock-up expiry adds another consideration for investors. Over the next few days, restrictions on around 35% of SpaceX shares are due to end, enabling investors and company insiders to sell. Profit-taking by some holders could increase share-price volatility, with sentiment towards AI stocks still fragile.

16% Rise as Super Micro Delivers Strong Outlook

Quarterly revenue expectations at Super Micro Computer have risen to $18.5 billion to $19.5 billion, well above the earlier guidance of $14.5 billion to $15.5 billion. Its shares are up 16% following results that exceeded forecasts.

Last week's investor unease centred on valuations, the financing costs of the AI buildout and returns on heavy expenditure. Semiconductor stocks fell 12%, and the Nasdaq recorded a weekly decline of 3%. The latest results have since helped rebuild some confidence in AI-linked shares.

Evidence that AI demand is delivering earnings growth will be the priority for investors when Meta Platforms reports after today's U.S. market close. Its results are now the focus.

Spending and financing concerns remain despite the encouragement from the latest results. More expensive oil creates a further complication. If inflation persists, interest rates could stay higher, making the next phase of AI expansion costlier.

29,200 Support in Focus: Nasdaq 100 Technical Analysis

Around 29,200, support halted the Nasdaq 100's decline from its record high of 31,365. The rebound has left the index below its 50 EMA and two falling trendline resistance levels. Those barriers keep the near-term outlook bearish, even as futures recover.

For sellers, a break beneath 29,200 would shift the focus to the June 9 low of 28,200, alongside the 200 EMA around 28,150.

The convergence of the falling trendlines and 50 EMA places resistance at 29,830, a zone buyers need to regain. A break higher would open a route to 31,000 and then 31,350, around the record high.