Tech optimism is likely to abound on Wall Street as AI-levered stocks are feeding off the strength generated by Advanced Micro Devices, Inc.‘s (NASDAQ:AMD) robust second-quarter results. The major index futures are all sharply higher early Wednesday. The financial markets have baked in expectations of the Federal Reserve, led by Chairman Jerome Powell, to confirm a September rate cut. Bond yields are dropping and the dollar-denominated commodities are rising as the U.S. dollar trades lower against most major currency pairs. The beaten-down mega-cap techs could lead the market higher, as evidenced in the premarket session. Microsoft Corp. (NASDAQ:MSFT) did stir up some nervousness but analysts are largely sanguine about continued AI strength for the company, basing the optimism on the strong commercial cloud bookings. Futures Performance (+/-) Nasdaq 100 +1.52% S&P 500 +0.99% Dow +0.30% R2K +0.74% In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) moved up 0.95% to $547.16, and the Invesco QQQ ETF (NASDAQ:QQQ) jumped 1.52% to $464.48, according to Benzinga Pro data. Cues From Last Session: U.S. stocks ended Wednesday’s session on a mixed note after traders sold off tech stocks amid some disappointing earnings and apprehensions ahead of some mega-cap tech earnings. Traders also chose to remain cautious ahead of the Fed decision. The major averages opened uniformly higher but diverged thereafter. The Dow Industrials stayed mostly in the green, moving roughly sideways and ending moderately higher. The 30-stock blue-chip average drew strength from the support lent by healthcare and financial stocks. The Nasdaq Composite and the S&P 500 Index squandered their early gains ahead of earnings reports from Microsoft and AMD and declined steadily through the morning. After bottoming by the mid-session, these averages moved roughly sideways before closing notably lower. Financial stocks rallied on Fed rate cut expectations and energy stocks gained on BP Plc.’s (NYSE:BP) quarterly earnings, while IT stocks served as drags. Index Performance (+/-) Value Nasdaq Composite -1.28% 17,147.42 S&P 500 Index -0.50% 5,436.44 Dow Industrials +0.50% 40,743.33 Russell 2000 +0.35% 2,243.14 Insights From Analysts: Weighing in on the recent market weakness, Carson Group Chief Investment Strategist Ryan Detrick said some more volatility would be perfectly normal. Since ...