U.S. stock futures ticked higher on Wednesday, building on Tuesday's record-setting session for the Dow Jones and S&P 500. The optimism comes as Treasury Secretary Scott Bessent suggested a deal with Iran could be close, potentially reopening the Strait of Hormuz to commercial shipping.
In an interview with CNBC, Bessent said there's a chance the Iran deal could be reached as soon as Tuesday or Wednesday, which would restore navigation through the critical waterway. "We are in talks with the Iranians," he said, adding that a deal could bring "major relief" across energy products, fertilizers, refined products, and industrial gases.
Meanwhile, the 10-year Treasury yield stood at 4.607%, while the two-year note yielded 4.20%. According to the CME Group's FedWatch tool, markets are pricing in a 58.9% likelihood that the Federal Reserve will hike interest rates at its September meeting.
| Index |
Performance (+/-) |
| Dow Jones |
0.20% |
| S&P 500 |
0.31% |
| Nasdaq 100 |
-0.08% |
| Russell 2000 |
0.20% |
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 mixed in premarket trading. SPY was up 0.34% at $773.95, while QQQ slipped 0.16% to $722.67.
Stocks In Focus
Advanced Micro Devices
Advanced Micro Devices Inc. (AMD) reported better-than-expected second-quarter results, with revenue of $11.54 billion and adjusted earnings of $1.66 per share, beating analyst estimates of $11.28 billion in revenue and $1.61 in earnings per share. Despite the beat, AMD shares were down 8.4% in Wednesday's premarket trade.
Market data indicates that AMD maintains a strong price trend in the long and medium terms, with a good quality score.
Space Exploration Technologies
Space Exploration Technologies Corp. (SPCX) reported second-quarter revenue of $7.81 billion, with a loss of $0.09 per share, beating consensus estimates of $6.93 billion in revenue and a loss of $0.24 per share. SpaceX shares were down 1.02% in the premarket session.
Market data indicates that SPCX maintains a weak price trend in the long, medium, and short terms.
SanDisk
SanDisk Corp. (SNDK) is expected to report revenue of $8.93 billion and earnings per share of $34.45 in the fiscal fourth quarter. SanDisk shares were down 0.83% in Wednesday's premarket trade.
Market data indicates that SNDK maintains a weak price trend in the medium and short terms, with a good momentum score.
Eli Lilly and Co.
Eli Lilly and Co. (LLY) shares were up 3.08% in Wednesday's premarket trade. The company is expected to report revenue of $20.73 billion and earnings per share of $6.01 before the opening bell.
Market data indicates that LLY maintains a strong price trend in the long and medium terms, with a good quality score.
Datadog
Datadog Inc. (DDOG) shares were up 1.28% in Wednesday's premarket session. The company is expected to report revenue of $1.08 billion and earnings per share of $0.58 before the opening bell.
Market data indicates that DDOG maintains a strong price trend in the long, medium, and short terms, with a strong momentum score.
Cues From Last Session
Information technology, materials, and industrial stocks led gainers on Tuesday, while utilities, energy, and consumer discretionary saw the largest losses.
| Index |
Performance (+/-) |
Value |
| Dow Jones |
1.71% |
54,085.88 |
| S&P 500 |
1.79% |
7,736.52 |
| Nasdaq Composite |
2.59% |
26,584.99 |
| Russell 2000 |
1.85% |
3,036.98 |
Insights From Analysts
Analysts at Schwab Center for Financial Research said in a note on Wednesday that the S&P 500's rebound above its 50-day moving average after briefly slipping below it last week is a constructive technical signal and may be fueling short covering that is adding momentum to the rally.
The index had traded close to its 50-day moving average for much of June and July and is now sitting farther above that level than at any point since early June, the firm said.
A tightening services sector could reignite wage pressures, putting Friday's payrolls report in sharp focus. Kevin Gordon, head of macro research and strategy at the SCFR, said any evidence of labor market tightness could reinforce market concerns about the Federal Reserve's inflation-fighting credibility.
Upcoming Economic Data
- On Wednesday, July's ADP national employment report will be out by 8:15 a.m. ET, July's U.S. services PMI will be released by 9:45 a.m., and July's ISM services PMI data will be available at 10:00 a.m.
- Federal Reserve Governor Lisa Cook will speak at 4:05 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 0.51% to hover around $76.16 per barrel.
Gold Spot US Dollar rose 2.16% to hover around $4,165.54 per ounce. The U.S. Dollar Index spot was 0.03% lower at the 99.710 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.56% higher at $64,007.77 per coin over the last 24 hours.
Asian markets closed mostly higher on Wednesday, as Japan's Nikkei 225, South Korea's Kospi, China's CSI 300, Hong Kong's Hang Seng indices surged. India's Nifty 50 and Australia's ASX 200 indices declined. European markets were mostly higher in early trade.
