US pre-open: Futures edge up despite AI bubble fears
By Iain Gilbert
Date: Wednesday 08 Oct 2025
(Sharecast News) - US futures pointed to a firmer open on Wednesday, even as concerns around a potential AI-driven market bubble weighed on sentiment following a report on Oracle's cloud margins.
As of 1255 BST, Dow Jones futures were up 0.18%, while S&P 500 and Nasdaq-100 futures were both 0.13% higher.
The Dow closed 91.99 points lower on Tuesday, extending losses recorded in the previous session, while the S&P 500 snapped a seven-day winning streak as tech stocks came under pressure.
The Information reported on Tuesday that Oracle's cloud margins were below analyst forecasts, and that the company was losing money on some Nvidia chip rental deals. Shares in Oracle fell 2.5% in response. The report added to growing fears that the current AI rally may be overheating, drawing comparisons to the late-1990s dot-com bubble.
The ongoing US Federal Government shutdown, which stretched into its eighth day on Wednesday, was also in focus before the open, with key data points being delayed.
Trade Nation's David Morrison said: "Traders seem to consider the shutdown no more than a mild inconvenience due to the postponement of certain economic data releases. Instead, investors continue to expect more upside in US equities, supported by ongoing investment in artificial intelligence, along with the prospect of 50 basis-points-worth of rate cuts before the year-end. Tariff-related concerns have been shoved into the long-term carpark for now."
On the macro front, US mortgage applications fell 4.7% in the week ended 3 October, according to the Mortgage Bankers Association of America, extending the 12.7% drop seen in the prior period and further trimming a recent three-week surge of 42%. Despite a fresh decline in benchmark mortgage rates, buyers remained cautious amid ongoing uncertainty around US borrowing costs, with demand shifting toward adjustable-rate loans, which accounted for 9.5% of total contracts, up from 8.4% a week earlier. Applications to refinance a mortgage, which are more sensitive to short-term rate moves, fell 8%, while applications to purchase a home eased 1% week-on-week.
Still to come, minutes from the Federal Reserve's latest policy meeting will be published at 1900 BST.
Reporting by Iain Gilbert at Sharecast.com
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