U.S. stock futures are pointing to a higher start on Wednesday, as investor optimism rises following news of new trade deals announced by President Donald Trump.
The upward momentum comes after Trump unveiled two significant trade agreements—one with Japan and another with the Philippines—that could mark a major shift in global trade dynamics ahead of the August 1 deadline.
The agreement with Japan, which Trump called the “largest ever” U.S. trade deal with the country, imposes a 15% tariff on Japanese exports. It also includes commitments from Japan to invest $550 billion in the United States and open up access for American automobiles, rice, and various agricultural goods.
“The U.S. would receive 90 percent of profits from the agreement,” Trump said, adding the deal “could generate hundreds of thousands of American jobs.”
The pact with the Philippines promises zero tariffs on U.S. goods in the country, though “Manila [would be] paying a 19 percent duty,” according to Trump.
These developments have sparked hopes for additional trade pacts, encouraging investor confidence as negotiations with other partners reportedly continue.
Markets closed mixed on Tuesday, as early-session weakness gave way to a partial recovery. Despite initial selling, all three major indices bounced off their lows.
The Nasdaq dipped 81.49 points (−0.4%) to finish at 20,892.69. Meanwhile, the S&P 500 edged up 4.02 points (+0.1%) to 6,309.62, and the Dow Jones Industrial Average added 179.37 points (+0.4%) to close at 44,502.44.
The pullback early in the session followed Monday’s record-setting performance for the Nasdaq and S&P 500, with investors taking profits and reacting to mixed earnings results.
General Motors (NYSE:GM) slumped 8.1%, despite posting Q2 earnings above expectations, as the results reflected a steep decline from the prior year. Similarly, Lockheed Martin (NYSE:LMT) dropped 10.8% after reporting disappointing revenue for the quarter.
Trading volume remained light, with few major economic reports to guide direction. Traders were largely focused on upcoming earnings from Alphabet (NASDAQ:GOOGL) and Tesla (NASDAQ:TSLA), due after Wednesday’s closing bell.
Several sectors posted notable gains. Homebuilders led the way, lifting the Philadelphia Housing Sector Index by 6.7%—its best finish in over five months. D.R. Horton (NYSE:DHI) soared 17% after delivering better-than-expected third-quarter results.
Gold miners also gained ground, with the NYSE Arca Gold Bugs Index jumping 3.1% to its highest level in more than 12 years.
Other strong sectors included oil services, biotech, and steel, while semiconductor, networking, and hardware names came under pressure.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.