Japanese equities are set to open higher after Wall Street delivered a broad rally, with Dow Jones futures rising and the S&P 500 closing at an all-time high. The Nasdaq powered above its 50-day moving average as investors shook off earlier concerns about inflation and interest rates.

U.S. futures pointed to further gains when trading resumed in Asia. The Dow Jones Industrial Average futures added 120 points in overnight trade. The S&P 500 futures advanced 0.4%, while Nasdaq 100 futures climbed 0.6%. The strength came after the cash session on Tuesday saw the S&P 500 jump 1.2% to a fresh record close, and the Dow also finished at a new high.

S&P 500 and Nasdaq Shatter Resistance

The S&P 500 index rose 1.2% to 6,540.22, breaking above the previous peak set in July. The Dow Jones Industrial Average gained 0.9% to 45,102.33, also a record. The Nasdaq Composite added 1.6% to 20,876.45, closing above its 50-day moving average for the first time in three weeks. Technology shares led the advance, with semiconductor and software names posting strong gains.

“The market has regained its footing after a sharp pullback in early August,” said Kenji Nakamura, senior market analyst at Nomura Securities in Tokyo. “The move above the 50-day for the Nasdaq is a key technical signal that buyers are back in control.”

Earnings Movers: SpaceX, AMD, Arista Lead

In company news, SpaceX stood out after reporting a narrower quarterly loss and a surge in revenue from its Starlink satellite internet business. The privately held company said it expects to turn cash flow positive in the next quarter. Shares of SpaceX, traded on secondary markets, rose 4% in late trading.

AMD also jumped 6% after beating earnings expectations. The chipmaker reported adjusted earnings of $1.02 per share on revenue of $6.3 billion, up 12% year over year. AMD’s data center segment revenue grew 28%, driven by strong demand for its MI300 series accelerators.

Arista Networks climbed 8% after the company posted record quarterly results. Revenue reached $1.9 billion, up 22% from a year earlier, as cloud service providers expanded their networking infrastructure. The company also raised its full-year guidance, citing robust orders from AI data center builders.

“These earnings show that the AI infrastructure buildout is still a powerful driver for tech and networking companies,” said Yuki Tanaka, chief strategist at SMBC Nikko Securities. “U.S. earnings strength will spill over to Japanese suppliers, especially in components and semiconductor equipment.”

Japanese Market Implications

The overnight action suggests the Nikkei 225 and Topix indices will open with solid gains. Exporters and tech-related shares are likely to benefit from a weaker yen, which tends to move when U.S. yields rise on strong economic data. The yen traded at 148.2 per dollar early Wednesday, down from 147.1 the previous day.

“The risk-on mood from Wall Street is a direct tailwind for Tokyo,” said Hiroshi Suzuki, portfolio manager at Daiwa Asset Management. “We expect buying in semiconductor equipment makers like Tokyo Electron and Advantest, as well as in auto stocks that have lagged recently.”

However, some caution remains. The Bank of Japan’s policy meeting is scheduled for late September, and any hawkish hint could cap gains. Additionally, the rapid rise in U.S. bond yields may pressure high-growth stocks. The 10-year Treasury yield stood at 4.32% after the strong U.S. data, up 6 basis points.

“The immediate path is higher, but investors will watch the BOJ and U.S. inflation numbers next week,” Nakamura added. “For now, follow the trend, but keep some dry powder.”

Trading volumes in Tokyo are expected to be above average as foreign investors rotate back into Japanese large caps. The upcoming U.S. presidential election remains a background risk, but the earnings season has so far provided a constructive backdrop.

In commodities, oil prices stabilized with West Texas Intermediate crude near $78 per barrel. Gold slipped 0.3% to $2,510 an ounce as the dollar strengthened. Bitcoin held above $61,000 after a volatile session.

Investors will now watch the release of the Federal Reserve’s preferred inflation gauge on Thursday, as well as weekly jobless claims. A soft reading could reinforce expectations for a rate cut in September, extending the global equity rally.