U.S. stock futures were pointing higher on Wednesday, building on Tuesday's gains, as traders weighed escalating geopolitical rhetoric against a backdrop of resilient corporate earnings and a busy economic calendar.
President Donald Trump said Tuesday that U.S. strikes in Iran would continue into next week, warning of "very hard" hits as tensions around the Strait of Hormuz persist. He declared that "Oil is flowing like never before" thanks to American military operations keeping the key shipping lane open. The comments come as crude oil futures edged up 0.59% to around $79.81 per barrel in early New York trading.
On the data front, all eyes are on the June Producer Price Index (PPI) report due at 8:30 a.m. ET, along with the Empire State Manufacturing Survey and personal consumption data. The 10-year Treasury yield sat at 4.60%, while the two-year yield was at 4.20%. According to the CME Group's FedWatch tool, markets see an 85.6% probability that the Federal Reserve will leave interest rates unchanged at its July meeting.
Here's how the major index futures were shaping up ahead of the open:
The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 respectively, were both higher in premarket. SPY was up 0.25% at $753.68, while QQQ advanced 0.50% to $723.30.
Stocks In Focus
Pentair (PNR) – Down 16.93%
Pentair PLC (PNR) took a beating in premarket trading, plunging nearly 17% after the water treatment company slashed its full-year 2026 guidance. Adding to the pain, the company announced that CFO Nicholas J. Brazis resigned effective July 10, with Robert P. Fishman stepping in as interim CFO starting July 14. The stock's price trend is strong in the short term but weak over the long and medium terms, according to market data, though it carries a solid quality score.
ASML Holding (ASML) – Up 3.40%
ASML Holding NV (ASML) rose after reporting better-than-expected earnings and sales for the second quarter. The Dutch semiconductor equipment maker continues to benefit from strong demand for chip-making tools. Its price trend is strong across short, long, and medium time frames, with a solid growth score.
International Business Machines (IBM) – Up 1.19%
International Business Machines Corp. (IBM) edged higher, recovering slightly from Tuesday's brutal 25% drop. The company warned that clients had paused software and mainframe spending amid "rapidly evolving, industry-wide cybersecurity concerns." It pre-announced a messy quarter, guiding second-quarter revenue to about $17.2 billion — up roughly 1% year over year but well below Street estimates of $17.86 billion. IBM's price trend remains strong in the long, short, and medium terms, though its value score is poor.
Aehr Test Systems (AEHR) – Up 29.15%
Aehr Test Systems (AEHR) surged after the company posted fourth-quarter results that beat estimates on both the top and bottom lines. The stock's price trend is weak in the short and medium terms but strong over the long term.
Intel (INTC) – Up 3.06%
Intel Corp. (INTC) rose after announcing a €5 billion (approximately $5.712 billion) investment to expand its Leixlip campus in Ireland. The move will boost capacity for its Intel 3 advanced process technology to meet surging demand for AI and server processors. Intel's price trend is strong in the long and medium terms, and also strong in the short term.
Cues From Last Session
Tuesday's trading saw energy, information technology, and communication services stocks lead the gains, while health care and consumer staples lagged. Most S&P 500 sectors ended in positive territory. Here's how the major indices closed:
Insights From Analysts
Wharton School Professor Emeritus Jeremy Siegel remains highly optimistic about the U.S. stock market and the broader economy, pointing to a "constructive" fundamental backdrop. Despite geopolitical tensions, he emphasizes that the market continues to display remarkable resilience, with major averages sitting near all-time highs.
A primary driver of this optimism is an extraordinary 24% year-over-year corporate earnings growth rate, which Siegel notes is "primarily the result of widening margins fueled by AI investment and productivity gains." He describes the current environment as "one of the most unusual profit cycles investors have witnessed in decades," where businesses generate massive profits without relying on explosive GDP growth.
On the economic front, Siegel sees few signs of trouble, pointing to a healthy 2% to 2.5% second-quarter GDP growth rate. He expects policy stability from the Federal Reserve, arguing that temporary technology input costs, rather than broad-based demand, are keeping core inflation sticky. He notes that the "Federal Reserve has little reason to raise interest rates further." Ultimately, Siegel believes steady growth, healthy liquidity, and booming earnings are "the ingredients that have historically supported higher equity prices."
Upcoming Economic Data
Here's what investors will be keeping an eye on this Wednesday:
- July's Empire State Manufacturing Survey, June's PPI, monthly core PPI, and June's Personal Consumption data will all be released by 8:30 a.m. ET.
- New York Fed President John Williams will speak at a Partnership for New York City event at 8:45 a.m.; Federal Reserve Board Chair Kevin Warsh will present the Monetary Policy Report to the U.S. Senate Banking Committee at 10:00 a.m.; Fed Governor Lisa Cook will speak at an Exchequer Club Luncheon at 1:00 p.m.; and the U.S. Federal Reserve Beige Book will be out by 2:00 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session, up 0.59% to hover around $79.81 per barrel. Gold Spot US Dollar fell 0.65% to around $4,026.42 per ounce. The U.S. Dollar Index spot was 0.02% lower at 100.9030.
Meanwhile, Bitcoin (BTC) was trading 3.19% higher at $64,583.06 per coin over the last 24 hours.
Asian markets closed mostly higher on Wednesday, except China's CSI 300 index. Australia's ASX 200, India's Nifty 50, South Korea's Kospi, Hong Kong's Hang Seng, and Japan's Nikkei 225 indices all rose. European markets were mostly lower in early trade.
