(Reuters) - U.S. stock index futures edged higher on Wednesday, rebounding from steep losses in the previous sessions, as investors focused on the progress of a highly anticipated tax-cut plan through Congress and awaited crucial results from AI powerhouse Nvidia.
At 05:36 a.m. ET, Dow E-minis were up 101 points, or 0.23%, S&P 500 E-minis were up 27.75 points, or 0.46%, and Nasdaq 100 E-minis were up 163.5 points, or 0.77%.
Investors have been on edge since last week as a series of data releases, including Tuesday's weak consumer sentiment print, suggested the world's largest economy might be stalling, even as sticky inflation keeps the Federal Reserve cautious about lowering interest rates further.
The benchmark S&P 500 and the Nasdaq logged their biggest four-day declines since September on Tuesday, mainly due to weakness in tech stocks as some analysts hinted at the industry's overcapacity and overspending on artificial intelligence.
AI bellwether Nvidia's quarterly results and forecasts, expected after markets close, are likely to set the tone for Wall Street, a month after low-cost AI models from China's DeepSeek rattled the industry in January.
The stock gained 2.6% in premarket trading, while peers Broadcom and Advanced Micro Devices added 2.3% and 1.5%, respectively.
Megacaps such as Amazon.com and Alphabet rose 0.9% each, while Tesla rose 1.8%, a day after the electric vehicle maker's market value fell below $1 trillion.
"Investors are very much used to seeing impressive results, therefore the risk factors could reverse optimism from strong results," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
"Add to that the fact that the market environment is not ideal these days, Nvidia has the heavy task of lifting the market mood this week. If it can not, the selloff in stocks could accelerate despite the falling yields."
On the fiscal front, President Donald Trump's $4.5 trillion tax-cut and border security agenda will be sent to the U.S. Senate after passing the Republican-controlled House of Representatives.
Expectations that Trump's 2017 tax cuts would at least be extended were among top boosts to investor sentiment after his election win.
However, given broader economic uncertainty, futures tracking the domestically-focused Russell 2000 index inched up 0.2%, while yields on Treasury bonds recouped some of Tuesday's declines.
Traders expect the Fed to deliver its first interest rate cut in July, according to data compiled by LSEG. Remarks from policymakers Thomas Barkin and Raphael Bostic, due later in the day, are likely to reiterate the central bank's cautious stance.
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In the latest on global trade, Trump ordered a probe into potential new tariffs on copper imports, sending prices of the red metal higher. Phoenix-based copper miner Freeport-McMoran jumped 4.88%.
The U.S. and Ukraine also agreed on the terms of a draft minerals deal as Trump seeks to rapidly end the war with Russia.
Workday jumped 11.7% after the human capital management firm beat expectations for fourth-quarter revenue.
Intuit shares rose 8% after the TurboTax maker forecast third-quarter revenue above Street estimates.
(Reporting by Johann M Cherian in Bengaluru; Editing by Devika Syamnath)
