U.S. stock futures are pointing lower again Wednesday, extending Tuesday's losses as geopolitical tensions in the Middle East take center stage. President Donald Trump, speaking in Ankara ahead of a NATO summit, said the ceasefire agreement with Iran is "over," according to Reuters. That came after U.S. Central Command announced it had "begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway."
The Dow Jones, S&P 500, and Nasdaq 100 futures are all in the red. The SPDR S&P 500 ETF Trust (SPY) was down 0.82% in premarket trading at $741.59, while the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, fell 1.04% to $702.06.
Here's how the major indexes performed on Tuesday:
Most S&P 500 sectors actually closed positive on Tuesday—led by health care, real estate, and energy—but information technology and industrials dragged the major indexes down.
The 10-year Treasury yield is at 4.56%, while the two-year sits at 4.20%. According to the CME Group's FedWatch tool, markets are pricing a 72.7% chance that the Federal Reserve leaves rates unchanged at its July meeting.
Investors are also waiting for the minutes of the Federal Open Market Committee meeting—the first under new Chairman Kevin Warsh—which will be released at 2:00 p.m. ET today.
Stocks in Focus
FuelCell Energy (FCEL)
FuelCell Energy tumbled 15.91% in premarket trading after announcing a $200 million stock offering after Tuesday's close. The company is raising capital, and the market is punishing the dilution. According to stock rankings, FCEL maintains a strong price trend in the medium, short, and long terms, but the offering is clearly weighing on sentiment today.
Saratoga Investment (SAR)
Saratoga Investment Corp. fell 4.59% after reporting disappointing first-quarter earnings after Tuesday's closing bell. Stock rankings indicate SAR maintains a weak price trend across all time frames, with a poor quality score.
Edible Garden (EDBL)
Edible Garden AG surged 48.23% after an SEC filing revealed that HRT Financial LP, a New York City-based proprietary trading and quantitative investment firm, reported purchases of Edible Garden common stock on Tuesday. Despite the pop, stock rankings show EDBL maintains a weak price trend in the long, short, and medium terms.
Exxon Mobil (XOM)
Exxon Mobil surged 3.35% higher after hinting Tuesday that its second-quarter earnings could get a boost of about $5 billion compared to the previous quarter, thanks to spiking oil prices amid the U.S.-Iran conflict. Stock rankings indicate XOM maintains a weak price trend in the medium and short terms, but a strong trend in the long term, with a good growth score.
Levi Strauss (LEVI)
Levi Strauss & Co. was down 2.60% ahead of its earnings report after the closing bell. Analysts expect earnings of 24 cents per share on revenue of $1.52 billion. Stock rankings indicate LEVI maintains a strong price trend in the short, long, and medium terms, with a solid value score.
Insights from Analysts
In its Midyear Outlook 2026, LPL Financial expects modest gains from the U.S. stock market and a moderating but positive economic growth environment. LPL Research maintains a moderate equity overweight, driven by corporate earnings strength linked to artificial intelligence.
Chief Investment Officer Marc Zabicki notes that "strength in earnings is a key reason we have added to our 2026 return expectations for equities," though he cautions that "midterm election years make for a bumpy investment ride."
LPL highlights that the bull market should continue, supported by ongoing AI execution. On the economic front, LPL anticipates GDP growth to stay under 2% in the latter half of the year, though a recession is not in its baseline forecast. Business spending on AI infrastructure and equipment is projected to counterbalance softer segments like housing.
LPL's Chief Economist, Jeffrey Roach, indicates that "strong business investment—anchored by AI—will help offset weakness in housing." Furthermore, inflation is expected to gradually ease to around 2.9% by year-end, provided that geopolitical friction in the Middle East and energy supply channels settle down.
Upcoming Economic Data
Here's what investors will be watching Wednesday:
- May's Monthly Wholesale Trade data at 10:00 a.m. ET.
- Minutes of the Federal Open Market Committee meeting and economic forecast at 2:00 p.m. ET.
- May's Consumer Credit data at 3:00 p.m. ET.
- Bank of England Deputy Governor Sarah Breeden, FRB New York President John Williams, and FRB Dallas President Lorie Logan will speak at The Future of Market Liquidity and Functioning Workshop at 8:00 p.m. ET.
Commodities, Crypto, and Global Markets
Crude oil futures were trading higher in the early New York session, up 6.08% to around $74.73 per barrel, as the Iran situation escalates.
Gold spot fell 0.84% to around $4,071.07 per ounce. The U.S. Dollar Index was 0.05% higher at 101.0780.
Bitcoin (BTC) was trading 1.76% higher at $61,928.15 per coin over the last 24 hours.
Asian markets closed mostly lower on Wednesday. India's Nifty 50, Australia's ASX 200, South Korea's Kospi, Japan's Nikkei 225, China's CSI 300, and Hong Kong's Hang Seng all fell. European markets were also lower in early trade.
