U.S. stock futures climbed early Wednesday as investors focused on developments in U.S.-China trade negotiations and awaited the Federal Reserve’s interest rate announcement later in the day. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.64%, 0.5%, and 0.55%, respectively, at 3:43 a.m. EST, May 7.
The uptick in futures followed news that U.S. Treasury Secretary Scott Bessent and a top trade official, Jamieson Greer, are scheduled to meet with their Chinese counterparts in Switzerland this week.
This positive move follows a decline in all three major indices in Tuesday’s regular trading session. The Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) fell by 0.95%, 0.77%, and 0.87%, respectively.
In major after-market action, Super Micro Computer (SMCI) fell 5% after missing Q3 earnings and issuing a weak outlook. Also, Wynn Resorts (WYNN) dropped 2% after reporting weak Q1 earnings. However, Advanced Micro Devices (AMD) jumped nearly 4% after posting better-than-expected Q1 earnings, driven by strong AI chip demand.
Looking ahead, investors will be focused on the Fed’s interest rate decision today. The central bank is widely expected to maintain current rates. Also, investors are awaiting Fed Chair Jerome Powell’s post-meeting remarks for any indications of future monetary policy changes, especially given rising political pressure to implement rate cuts. Further, traders will be monitoring Consumer Credit data today.
On the earnings front, reports from major companies such as Disney (DIS), Carvana (CVNA), ARM Holdings (ARM), IonQ (IONQ), Unity Software (U), Barrick Gold (GOLD), Vistra Energy (VST), and Uber (UBER) are due today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.32%. Simultaneously, WTI crude oil futures are trending higher, hovering near $59.93 per barrel as of the last check.
At the same time, the Gold Spot U.S. Dollar Price declined to $3,390 per ounce on Wednesday, as optimism over U.S.-China trade talks reduced demand for safe-haven assets.
Elsewhere, European indices are set for a mixed open today as traders await the U.S. Federal Reserve’s policy announcement later in the afternoon.
Asia-Pacific Markets Ended Higher
Most of the Asia-Pacific indices were in the green today as China’s central bank disclosed plans to cut key interest rates to boost growth amid trade concerns.
At the same time, the Hong Kong index was up 0.55%. Further, China’s Shenzhen Component and Shanghai Composite indices closed higher by 0.22% and 0.8%, respectively. Also, Japan’s Topix index gained 0.31% while the Nikkei index was down 0.14%, respectively.
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