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Editor’s Note: The future prices of benchmark tracking ETFs were updated in the story.
U.S. stock futures rose on Wednesday following Tuesday’s declines. Futures of major benchmark indices were higher.
Shares of Oracle Corp. (NASDAQ:ORCL) fell 2.5% on Tuesday, dragging other tech stocks after the company said that it faced financial struggles related to renting out Nvidia Corp. (NASDAQ:NVDA) chips.
Meanwhile, following his meeting with Prime Minister Mark Carney, President Donald Trump hinted at potential progress in trade negotiations with Canada but gave no concrete assurances as tariffs continue to strain the neighboring economy.
The 10-year Treasury bond yielded 4.11% and the two-year bond was at 3.56%. The CME Group's FedWatch tool‘s projections show markets pricing a 95.1% likelihood of the Federal Reserve cutting the current interest rates in its October meeting.
Futures | Change (+/-) |
Dow Jones | 0.18% |
S&P 500 | 0.16% |
Nasdaq 100 | 0.21% |
Russell 2000 | 0.37% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and the Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.19% at $670.37, while the QQQ advanced 0.18% to $605.62, according to Benzinga Pro data.
While consumer staples and utilities stocks bucked the trend to close higher, most sectors on the S&P 500 ended negatively, with industrials, consumer discretionary, and communication services recording Tuesday's biggest losses.
Index | Performance (+/-) | Value |
Nasdaq Composite | -0.67% | 22,788.36 |
S&P 500 | -0.38% | 6,714.59 |
Dow Jones | -0.20% | 46,602.98 |
Russell 2000 | -1.12% | 2,458.42 |
Ed Yardeni of Yardeni Research said in his daily newsletter to investors that financials were in a “sweet spot” and the growth in commercial bank loans and leases indicated that the economy was in good shape.
He highlighted that the S&P 500 Diversified Banks stock price index is at a record high, and it was up 4.7% year-on-year through the Sept. 24 week, “twice as fast as at the beginning of this year.”
“This confirms our view that the pace of economic activity isn’t slowing. It may actually be accelerating,” he said.
Meanwhile, Ryan Detrick, Chief Market Strategist at the Carson Group, said that the current bull market is approaching its third anniversary, a significant milestone that invites historical comparison.
Detrick presented a chart comparing the current rally, which started in October 2022, against the five previous bull markets of the last 50 years that also lasted this long. The data reveals a potentially optimistic outlook for investors: historically, once a bull market has made it this far, it has tended to continue for much longer.
Detrick notes that the shortest of these past five bull runs lasted five years, the average was eight years, and two extended into double-digit territory, suggesting that if history is any guide, the current market expansion may still have considerable room to run.
See Also: How to Trade Futures
Here's what investors will be keeping an eye on Wednesday;
Crude oil futures were trading higher in the early New York session by 0.97% to hover around $62.33 per barrel.
Gold Spot US Dollar rose 1.33% to hover around $4,037.62 per ounce. Its last record high stood at $4,040.48 per ounce. The U.S. Dollar Index spot was 0.36% higher at the 98.9350 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.13% lower at $122,548.91 per coin.
Asian markets closed lower on Wednesday, except South Korea's Kospi and China’s CSI 300 indices. Hong Kong's Hang Seng, Australia's ASX 200, Japan's Nikkei 225, and India’s NIFTY 50 indices fell. European markets were mostly higher in early trade.
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