U.S. futures were flat on Wednesday after a positive day of trading on Tuesday. Futures of major benchmark indices were slightly positive.
Investors hoped the ceasefire between Iran and Israel would hold and help calm geopolitical tensions. President Donald Trump declared Tuesday that a ceasefire between the two adversaries was back in effect, even as reports of renewed hostilities raised doubts about its durability.
“Israel is not going to attack Iran. All planes will turn around and head home, while doing a friendly ‘Plane Wave’ to Iran,” Trump posted on Truth Social, adding, “the Ceasefire is in effect!“
The 10-year Treasury bond yielded 4.29% and the two-year bond was at 3.79%. The CME Group's FedWatch tool‘s projections show markets pricing a 79,3% likelihood of the Federal Reserve keeping the current interest rates unchanged in its July meeting.
| Futures | Change (+/-) |
| Dow Jones | 0.01% |
| S&P 500 | 0.06% |
| Nasdaq 100 | 0.10% |
| Russell 2000 | 0.11% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.069% at $607.20, while the QQQ advanced 0.14% to $540.51, according to Benzinga Pro data.
Cues From Last Session:
Information technology, communication services, and financial stocks led the gains on Tuesday, propelling U.S. stocks higher, with the Dow Jones index climbing over 500 points.
However, energy stocks bucked the overall market trend, closing the session lower.
Separately, TD Synnex Corp. (NYSE:SNX) reported better-than-expected earnings for the second quarter, and Nano Labs Ltd. (NASDAQ:NA) shares surged 36% after announcing a $500 million convertible notes private placement for its BNB treasury strategy.
On the economic front, the U.S. current account deficit widened by 44.3% to $450.2 billion in the first quarter, exceeding market estimates, while the S&P CoreLogic Case-Shiller Home Price Index saw a smaller 3.4% year-over-year increase in April.
The Dow Jones index ended 507 points or 1.19% higher at 43,089.02, whereas the S&P 500 index rose 1.11% to 6,092.18. Nasdaq Composite advanced 1.43% to 19,912.53, and the small-cap gauge, Russell 2000, gained 1.34% to end at 2,161.21.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 1.43% | 19,912.53 |
| S&P 500 | 1.11% | 6,092.18 |
| Dow Jones | 1.19% | 43,089.02 |
| Russell 2000 | 1.34% | 2,161.21 |
Insights From Analysts:
Jurrien Timmer of Fidelity Investments said in a series of X posts that the S&P 500 index was rangebound as it flirts with the all-time high and is heavily dependent on the movement of the Magnificent 7 stocks.
“The correction this year held at the 2021 high, and so far the recovery has been bounded by the 2025 high. That seems like a reasonable range to me,” he said.
He also predicted that the 20% ‘V’ shaped recovery in the index from April lows could turn “to an M from here.” He pointed out that “there are only a few historical analogs left in which the market continues to make new highs so soon after drawing down 20%.”
Talking about the market breadth, he highlighted that the market has narrowed again, with only half of the stocks in the S&P 500 trading above their various moving averages.
Meanwhile, he said the Magnificent 7, which led the downside in March and April, has led the upside in May but remains below its all-time high set in December. “Given the degree of concentration of these companies, wherever the Mag 7 goes, so goes the index as a whole.”
Talking about the ongoing tensions in the Middle East, Ed Yardeni said, “Any day with a ceasefire in the Middle East is a good day for stocks.”
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will keep an eye on Wednesday:
- May’s new home sales will be released at 10:00 a.m. ET.
Stocks In Focus:
- General Mills Inc. (NYSE:GIS) was up 0.094% in premarket on Wednesday as analysts expect it to report quarterly earnings of 71 cents per share on revenue of $4.59 billion, before the opening bell.
- Paychex Inc. (NASDAQ:PAYX) advanced 0.27% as analysts expect it to report quarterly earnings of $1.19 per share on revenue of $1.42 billion, before the opening bell.
- Micron Technology Inc. (NASDAQ:MU) was 0.657% higher as analysts expect it to report quarterly earnings of $1.59 per share on revenue of $8.86 billion after the closing bell.
- Winnebago Industries Inc. (NYSE:WGO) fell 0.13% as analysts expect it to report quarterly earnings of 79 cents per share on revenue of $774.81 million, before the opening bell.
- AeroVironment, Inc. (NASDAQ:AVAV) rose 1.41% after upbeat results. It sees fiscal 2027 adjusted EPS in a range of $2.80 to $3, versus the $3.72 estimate, and revenue in a range of $1.9 billion to $2 billion, versus the $1.98 billion estimate.
- Worthington Enterprises Inc. (NYSE:WOR) jumped 11.39% after reporting better-than-expected fourth-quarter financial results. The company reported quarterly earnings of $1.06 per share, which beat the analyst consensus estimate of 84 cents per share.
- Robinhood Markets Inc. (NASDAQ:HOOD) gained 2.98% as it is set to release its month-to-date trading metrics for June this Thursday, according to an update on the company's investor relations website.
- Quantumscape Corp. (NYSE:QS) surged 30.25% after its Cobra separator process entered into baseline production.
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 0.87% to hover around $64.93 per barrel.
Gold Spot US Dollar rose 0.03% to hover around $3,323.71 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.24% at the 98.0900 level.
Asian markets ended higher on Wednesday as Australia's ASX 200, Japan's Nikkei 225, China’s CSI 300, South Korea's Kospi, Hong Kong's Hang Seng, and India's S&P BSE Sensex indices advanced. European markets were mixed in early trade.
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