U.S. stock futures moved higher early Wednesday after a powerful rally on Wall Street pushed major indexes, including the S&P 500, to fresh record highs.
Dow Jones Industrial Average futures gained 195 points, or 0.36%, while S&P 500 futures rose 0.33%. Nasdaq-100 futures edged up 0.13%.
Asian markets traded mostly higher, led by South Korea, where the Kospi surged more than 4% and the small-cap Kosdaq climbed 2%. Japan’s Nikkei 225 advanced 3.1%, with the Topix adding 1.57%. Australia’s S&P/ASX 200 rose 0.13%. Meanwhile, Hong Kong’s Hang Seng Index slipped 0.4%, and mainland China’s CSI 300 remained largely unchanged.
In after-hours U.S. trading, SpaceX shares fell nearly 7% after the company reported second-quarter capital expenditures increased to $18.4 billion. Semiconductor maker AMD dropped 8% despite posting adjusted earnings that narrowly exceeded analysts’ expectations.
Tuesday’s rally was fueled by strong corporate earnings and comments from Treasury Secretary Scott Bessent suggesting the United States and Iran may be nearing an agreement to reopen the Strait of Hormuz. The S&P 500 climbed 1.8%, finishing above the 7,700 mark for the first time, while the Dow Jones Industrial Average surged more than 900 points to another record close.
Oil prices retreated sharply, with West Texas Intermediate crude falling 5.7% to settle at $75.77 per barrel.
Investor sentiment also received a boost from Caterpillar, whose better-than-expected quarterly results reflected continued strength in artificial intelligence-related infrastructure spending. The stock gained more than 5%. Palantir Technologies also soared nearly 30% after delivering impressive quarterly earnings.
Attention now shifts to another busy earnings day. Disney is scheduled to release results before the opening bell, while Uber and Eli Lilly are also set to report. After the market closes, investors will hear from E.l.f. Beauty and DoorDash.
On the economic calendar, traders will closely monitor the ADP private payrolls report for July. Economists surveyed by Dow Jones expect private-sector employers to have added 75,000 jobs during the month. Markets will also watch the release of the S&P Global Services PMI and the ISM Services PMI for fresh insight into the health of the U.S. economy.
Frequently Asked Questions
Why are U.S. stock futures rising today?
U.S. stock futures are moving higher after a strong Wall Street rally driven by robust corporate earnings, optimism over easing geopolitical tensions, and renewed investor confidence following record highs in the S&P 500 and Dow Jones Industrial Average.
What economic data are investors watching today?
Markets are focused on the ADP private payrolls report, the S&P Global Services PMI, and the ISM Services PMI. These reports will provide fresh insights into the strength of the U.S. labor market and the services sector ahead of the official nonfarm payrolls report.
Which companies are reporting earnings today?
Key earnings releases include Disney, Uber, and Eli Lilly before the market opens, while E.l.f. Beauty and DoorDash are scheduled to report after the closing bell. Their results could influence market sentiment and sector performance.
Why did oil prices fall despite the stock market rally?
Oil prices declined after optimism grew that the U.S. and Iran could reach an agreement to reopen the Strait of Hormuz, reducing concerns over supply disruptions. Lower oil prices also helped improve investor sentiment by easing inflation worries.
