US Stocks Likely To Open Higher: Trump's Tariff Clock Ticks, Fed Likely To Keep Rates Unchanged
U.S. stock futures advanced on Wednesday after ending on a mixed note on Tuesday. Futures of major benchmark indices were trading higher.
President Donald Trump announced a 50% tariff on copper imports and confirmed the “reciprocal” tariffs, paused in April, will resume on Aug. 1, stating, “no extensions will be granted” to countries without finalized deals by that date.
The 10-year Treasury bond yielded 4.41% and the two-year bond was at 3.90%. The CME Group's FedWatch tool’s projections show markets pricing a 95.3% likelihood of the Federal Reserve keeping the current interest rates unchanged in its July meeting.
| Futures | Change (+/-) |
| Dow Jones | 0.20% |
| S&P 500 | 0.18% |
| Nasdaq 100 | 0.19% |
| Russell 2000 | 0.08% |
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 Wednesday. The SPY was up 0.17% at $621.37, while the QQQ advanced 0.16% to $553.24, according to Benzinga Pro data.
Cues From Last Session:
Energy and materials stocks bucked the overall market trend, closing Tuesday’s session higher, while most other sectors on the S&P 500 ended negatively.
Consumer staples, utilities, and financial stocks notably recorded the biggest losses.
U.S. stocks settled mostly lower on Tuesday.
Shares of ProKidney Corp. (NASDAQ:PROK) jumped an impressive 515% on Tuesday. This surge followed the company’s announcement of statistically and clinically significant topline results from its Phase 2 REGEN-007 trial, which evaluated Rilparencel in patients with chronic kidney disease and diabetes.
On the economic data front, the US Manheim Used Vehicle Value Index saw a 1.6% month-over-month increase for June, a rebound after a 1.4% decline in May. Meanwhile, the NFIB Small Business Optimism Index dipped to 98.6 in June from 98.8 in May, slightly below market estimates of 98.7.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 0.029% | 20,418.46 |
| S&P 500 | -0.072% | 6,225.52 |
| Dow Jones | -0.37% | 44,240.76 |
| Russell 2000 | 0.66% | 2,228.74 |
Insights From Analysts:
Jeffrey Buchbinder, the chief equity strategist at LPL Financial, forecasted modest gains for equities in its mid-year outlook.
“AI-driven capex remains a key tailwind, but tariff-related earnings pressure and elevated valuations may cap upside. Pullbacks should be viewed as selective buying opportunities,” he said.
LPL's year-end S&P 500 target range was set at 6,000 to 6,100 points, based on $275 in 2026 EPS.
Meanwhile, the senior economist at WisdomTree, Jeremy Siegel, said that “Equity markets found encouragement, not because employment showed strength, but because it did not show further deterioration.”
Talking about AI, he said, “Companies able to leverage AI for productivity gains—particularly in financials and traditional industries—are poised to outperform.”
Siegel also stated that he will be closely watching for a potential shift in market leadership. “July has opened strongly for smaller caps, but I believe the stage is set for a longer-lasting rotation.”
“If users begin to invest in cost-saving technologies under the pressure of higher tariffs or wage costs, value could finally have its day,” he added.
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will keep an eye on Wednesday:
- The wholesale inventories data will be out by 10:00 a.m. ET.
- Minutes of the Fed’s May FOMC meeting will be released by 2:00 p.m. ET.
Stocks In Focus:
- Entero Therapeutics Inc. (NASDAQ:ENTO) surged 57.84% after regaining Nasdaq compliance following its annual meeting.
- Calidi Biotherapeutics Inc. (NYSE:CLDI) zoomed 50.57% after it announced the development of a precision genetic medicine platform for cancer treatment. Its innovative approach focuses on using engineered viruses to deliver genetic medicines that can target both primary tumors and metastatic sites.
- Sobr Safe Inc. (NASDAQ:SOBR) climbed 42.73% after the company announced it had been granted European patent number EP4171362.
- Birks Group Inc. (NYSE:BG) gained 21.10% after completing the acquisition of the Watch and Jewellery Business of European Boutique and related debt financing amendments.
- Sharplink Gaming Inc. (NASDAQ:SBET) advanced 14.06% after the company announced that it acquired an additional 7,689 ETH for the week of June 28 through July 4.
- GameSquare Holdings Inc. (NASDAQ:GAME) was 1.95% higher after a $100 million Ethereum investment announced on Tuesday spurred a 58% rally.
- AZZ Inc. (NYSE:AZZ) rose 2.01% in premarket on Wednesday as analysts expect it to report earnings of $1.58 per share on revenue of $434.79 million after the closing bell.
- Methode Electronics Inc. (NYSE:MEI) advanced 4.72% as it is expected to report earnings after market close. Analysts estimate earnings of 4 cents per share on revenue of $232.87 million.
- Penguin Solutions Inc. (NASDAQ:TZUP) dropped 6.09% after reporting upbeat earnings for the third quarter, while sales missed estimates. The company raised its FY2025 earnings guidance, but narrowed its sales forecast.
- Aehr Test Systems (NASDAQ:AEHR) plummeted 20.11% after posting weaker-than-expected revenue for the fourth quarter on Tuesday. Aehr Test Systems reported fourth-quarter revenue of $14.09 million, missing analyst estimates of $14.82 million.
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading lower in the early New York session by 0.51% to hover around $68.68 per barrel.
Gold Spot US Dollar fell 0.37% to hover around $3,289.34 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.06% at the 97.5760 level.
Asian markets ended mostly lower on Wednesday, except South Korea's Kospi and Japan's Nikkei 225 indices. Meanwhile, India's S&P BSE Sensex, Hong Kong's Hang Seng, Australia's ASX 200, and China’s CSI 300 indices fell. European markets were higher in early trade.
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