U.S. equity futures are mixed after Tuesday’s record-setting advance. At 5:06 a.m. ET, S&P 500 futures were up 0.25%, Dow futures were up 0.21% and Nasdaq 100 futures were down 0.07%. The Russell 2000 enters the session with a firmer technical setup after outperforming Tuesday, supported by lower oil prices and a 10-year Treasury yield near 4.61%. Strong earnings continue to support the broader market, but disappointing reactions to AMD and SpaceX are limiting Nasdaq follow-through.
U.S. equities surged Tuesday, with the S&P 500 gaining 1.79%, the Dow rising 1.71%, the Nasdaq advancing 2.59% and the Russell 2000 climbing 1.8%. The S&P 500 and Dow closed at records as strong AI-linked earnings and a sharp decline in oil reduced inflation concerns. The Philadelphia Semiconductor Index gained 6.6%, while consolidated U.S. exchange volume reached 18.89 billion shares, above the recent 20-session average.
Treasury yields fell as crude’s decline reduced the immediate energy-inflation premium. The 2-year yield declined 5 basis points to 4.20%, the 10-year fell 7 basis points to 4.62% and the 30-year dropped 5 basis points to 5.18%. The 10-year remained near 4.61% Wednesday morning, while markets priced a roughly 58% probability of a September Fed rate increase.
The DXY was nearly unchanged at 99.89 Tuesday. The euro strengthened to $1.1530, sterling rose to $1.3451 and the dollar climbed to ¥157.76. Overnight, the DXY eased toward 99.85, while the yen stabilized near ¥157.7 following the recent U.S.-Japan intervention.
September WTI crude fell 5.84% to $75.65, while December gold gained 1.11% to $4,136. Oil remained below $80 Wednesday as investors monitored progress toward a U.S.-Iran agreement and the potential reopening of the Strait of Hormuz. Gold extended above $4,160 as lower bond yields and a softer dollar improved demand for non-yielding assets.
Tuesday’s data showed a gradual cooling in labor demand without a material rise in layoffs. June job openings declined to 7.359 million from 7.537 million, while hiring increased and the quits rate held at 2.0%. The trade deficit narrowed 5.6% to $73.3 billion as imports fell faster than exports. Factory orders unexpectedly declined 0.3%, although orders for computers and electronic equipment remained strong amid continued AI infrastructure investment.
Wednesday’s calendar includes the ADP private-employment report at 8:15 a.m. ET, final S&P Global Services PMI at 9:45 a.m., and ISM Services at 10:00 a.m. The EIA petroleum inventory report follows at 10:30 a.m. Fed Governor Lisa Cook and San Francisco Fed President Mary Daly are also scheduled to speak as investors assess the balance between resilient growth and persistent inflation.
Sector Highlights
Technology led the sector advance with a 4.09% gain, followed by Materials +1.99% and Industrials +1.80%. Financials rose 0.88%, Communication Services gained 0.56% and Consumer Staples advanced 0.42%. The laggards were Utilities -0.60%, Energy -0.49%, Consumer Discretionary -0.48%, Health Care -0.14% and Real Estate -0.13%. Breadth was strong, with advancers leading decliners by 2.06:1 on the NYSE and 3.00:1 on the Nasdaq, confirming that the rally extended beyond a few mega-cap stocks.
Information Technology
- Advanced Micro Devices (AMD -8.1% premarket) forecast quarterly revenue above expectations on strong AI demand, but the outlook failed to clear the high bar implied by the stock’s 142% year-to-date gain.
- Nvidia (NVDA +1.9%) advanced after SpaceX said it plans to use Nvidia hardware exclusively for its data-center buildout. Intel (INTC -1.5%) and Micron Technology (MU -1.5%) declined.
- Arista Networks (ANET) was indicated sharply higher after adjusted earnings rose 40% and revenue increased 38%, while third-quarter guidance exceeded expectations.
Industrials
- SpaceX (SPCX -10% premarket) reported that revenue nearly doubled and operating losses narrowed, but investors focused on quarterly capital spending of $18.4 billion and the expiration of its post-IPO lockup beginning Thursday.
- Uber Technologies (UBER) reports before the open, with mobility bookings, delivery growth, autonomous-vehicle investment and margins in focus.
Communication Services
- Verizon (VZ) and AT&T (T) fell more than 2% premarket, while T-Mobile US (TMUS -0.8%) declined after SpaceX outlined plans to develop a full mobile-service offering.
- Walt Disney (DIS) reports before the open. Theme-park demand, streaming profitability and the outlook under new CEO Josh D’Amaro will be central to the reaction. Disney also announced a content-sharing agreement allowing TikTok creators to use characters and scenes from its movies and television programs.
Health Care
- Eli Lilly (LLY) and CVS Health (CVS) report before the opening bell. Lilly’s obesity-drug demand and manufacturing capacity will be the primary focus, while CVS will provide updates on medical costs and insurance profitability.
Consumer Discretionary
- Tesla (TSLA -0.8% premarket) weakened alongside SpaceX as investors reassessed the scale of Elon Musk’s capital-spending commitments across AI, autonomous vehicles and space infrastructure.
