U.S. stock futures edged higher on Wednesday as investors grew more confident in the likelihood of interest-rate reductions ahead, with attention turning to upcoming earnings releases after a turbulent session on Wall Street.
As of 05:03 P.M. (GMT+7), Dow Jones futures increased by 210.10 points, or 0.45%, to 46,480.60 points, while S&P 500 futures added 43.60 points, down 0.66%, to 6,687.90 points. Nasdaq 100 futures also increased by 219.50 points, or 0.89% to 24,798.80 points.
Market sentiment improved after Federal Reserve Chair Jerome Powell remarked that “downside risks to employment appear to have risen.” The market interpreted these comments as signaling the possibility of additional rate cuts, even as continued trade tensions between the U.S. and China and an unresolved government shutdown weigh on sentiment.
Powell’s comments come at a time when the ongoing U.S. government shutdown continues to postpone the release of critical economic data, heightening Wall Street’s reliance on policy cues. No major economic reports are scheduled for release on Wednesday.
The focus now shifts to corporate results, with Bank of America and Morgan Stanley set to report before the bell, joining PNC Financial and Abbott Laboratories. These updates follow JPMorgan’s latest financials on Tuesday, offering further insight into the health of U.S. companies.
Markets experienced sharp swings on Tuesday after President Donald Trump indicated he is considering new trade measures against China, accusing Beijing of not following through on U.S. soybean purchases. The threat escalated after China imposed sanctions on five American subsidiaries of South Korea’s Hanwha shipbuilding group.
As the government shutdown stretches on, the White House is bracing for a prolonged stalemate. President Trump said he plans to publish a list of federal programs targeted for cuts this week, while the administration’s budget office scrambles to secure funding for military and law enforcement payrolls.
