It's a mixed bag on Wall Street this morning. Futures for the S&P 500 and Nasdaq 100 are pointing higher, while Dow futures are slightly in the red. Investors are treading carefully, waiting for the Federal Reserve to drop its July meeting minutes later today. The central bank has been tight-lipped about its next move, so traders are hoping the minutes will offer some clarity.
Overseas, it was a rough night. Asian markets took a beating, with South Korea's KOSPI plunging over 5% as semiconductor heavyweights like SK Hynix and Samsung Electronics got hammered. The sell-off was so intense that it triggered a sidecar mechanism in Seoul, which temporarily halts trading to cool things down. The regional turmoil comes as US-Iran tensions escalate, pushing Brent crude above $91 a barrel after President Donald Trump ruled out any diplomatic engagement with Tehran.
"There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran," Trump said in a Truth Social post.
Meanwhile, the 10-year Treasury yield is sitting at 4.68%, and the two-year is at 4.15%. According to the CME Group's FedWatch tool, markets are pricing in a 32.8% chance that the Fed hikes rates at its September meeting.
Here's a quick look at how the major indices are expected to open:
| Index | Performance (+/-) |
| Dow Jones | -0.02% |
| S&P 500 | 0.08% |
| Nasdaq 100 | 0.16% |
| Russell 2000 | 0.04% |
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 trading. SPY was up 0.052% at $767.85, while QQQ advanced 0.12% to $718.37.
Stocks in Focus
Keysight Technologies
Keysight Technologies Inc. (KEYS) rose 3.06% in premarket after reporting better-than-expected third-quarter financial results and issuing strong fourth-quarter guidance. The company's stock rankings indicate a strong price trend in the long, short, and medium terms, though its growth score is poor.
Mercury Systems
Mercury Systems Inc. (MRCY) dropped 10.76% after reporting mixed fourth-quarter results. The company's earnings of 37 cents per share missed the analyst consensus estimate of 38 cents per share. Despite the drop, its stock rankings show a strong price trend in the short, long, and medium terms, but a poor value score.
SK Hynix
SK Hynix Inc. ADR (SKHY) jumped 5.76% despite a 9.75% drop in its South Korean-listed shares after announcing plans to buy back $29 billion worth of treasury shares. The ADR's stock rankings indicate a strong price trend in the short, long, and medium terms, with a good growth score.
Shell
Shell PLC (SHEL) was 0.74% higher as it strengthened a 20-year partnership with Hyundai Motors and renewed a global cooperation agreement. The stock's rankings show a strong price trend in the long, medium, and short terms, with a good value score.
Target
Target Corp. (TGT) was 0.41% lower as it prepares to report earnings before the opening bell. Analysts expect earnings of $2.32 per share on revenue of $26.13 billion. The stock's rankings indicate a strong price trend in the short, long, and medium terms, with a good quality score.
Cues From Last Session
Tuesday was a rough day for stocks. Tech, industrials, and materials led the S&P 500 lower, though energy and health care managed to close higher. The Nasdaq dropped over 350 points, weighed down by persistent inflation worries, rising crude oil, and high Treasury yields.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.22% | 53,343.40 |
| S&P 500 | -0.69% | 7,691.76 |
| Nasdaq Composite | -1.33% | 26,289.71 |
| Russell 2000 | -1.30% | 3,017.89 |
Insights From Analysts
Professor Jeremy Siegel remains highly optimistic about the U.S. stock market, driven by robust corporate performance that offsets softer economic data. He notes that despite a surprisingly weak retail sales report bringing third-quarter GDP estimates down to a "healthy but not booming" 2% range, the market continues to impress and hit record highs.
The bedrock of this market strength is corporate profits. Siegel highlights that we are witnessing double-digit earnings growth, stating, "This earnings season could rank among the most impressive in recent history." Furthermore, a recent unwinding of leveraged growth positions acted as a market stress test that was "passed with flying colors," easing fears of systemic risk.
On the economic front, Siegel observes that inflation is gradually improving and oil prices remain contained. Looking ahead to Federal Reserve policy, he expects rates to remain unchanged in September but urges Chairman Kevin Warsh to clarify the Fed's reaction function at the upcoming Jackson Hole symposium.
Ultimately, Siegel summarizes his bullish outlook by concluding, "The combination remains favorable for equities: earnings are exceptional, oil is manageable, inflation is gradually improving and economic growth, while moderating, is not collapsing."
Upcoming Economic Data
Here's what investors will be keeping an eye on Wednesday:
- Minutes of the Fed's July FOMC meeting will be published at 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 0.38% to hover around $84.38 per barrel.
Gold Spot US Dollar rose 0.66% to hover around $4,363.09 per ounce. The U.S. Dollar Index spot was 0.20% lower at the 99.4570 level.
Meanwhile, Bitcoin (BTC) was trading 0.30% higher at $64,404.74 per coin over the last 24 hours.
Asian markets were lower on Wednesday, except Hong Kong's Hang Seng index. China's CSI 300, Australia's ASX 200, India's Nifty 50, Japan's Nikkei 225, and South Korea's Kospi indices all fell. European markets were mostly mixed in early trading.
