U.S. stock futures moved higher on Wednesday morning, recovering from a previous session dip, as markets digested signs that U.S. tariffs may be affecting corporate earnings and broader economic momentum.
By 03:43 ET, Dow futures were up 227 points (0.5%), S&P 500 futures rose 30 points (0.5%), and Nasdaq 100 futures gained 74 points (0.3%).
The rally comes after equities pulled back on Tuesday, partly due to warnings from major companies about the impact of tariffs. Yum! Brands (NYSE:YUM), owner of KFC, flagged softer consumer spending, while Caterpillar (NYSE:CAT) said duties could reduce its earnings by as much as $1.5 billion in 2025.
Still, second-quarter earnings have broadly exceeded expectations, with over 80% of S&P 500 companies reporting better-than-forecast results. That’s helped ease fears stoked by weak jobs data and surging services input costs, which have raised concerns about potential stagflation in the U.S. economy.
AMD Under Pressure After Data Center Miss
Shares of Advanced Micro Devices (NASDAQ:AMD) declined in extended trading after the company reported mixed quarterly results. While overall revenue guidance for Q3 came in above estimates at around $8.7 billion, investors were disappointed by AMD’s data center performance.
The business, home to the company’s AI chips, saw revenue rise just 14% to $3.2 billion, matching expectations but trailing far behind Nvidia’s explosive growth. CEO Lisa Su acknowledged that AI chip sales declined year-on-year, citing U.S. export controls and a product transition to the upcoming MI350 chips.
Crucially, AMD noted that its Q3 guidance excludes shipments of its MI308 chips to China, with license applications currently pending U.S. government approval.
Eyes on McDonald’s and Disney Earnings
Later today, McDonald’s (NYSE:MCD) and Disney (NYSE:DIS) will report their quarterly results, drawing interest from investors watching consumer trends and media strategies.
Citi analysts expect McDonald’s to post solid comparable sales and showcase how innovation is helping maintain traffic amid rising competition.
For Disney, attention will be on the performance of its streaming business, studio division, and theme parks. Markets also await updates on its new ESPN streaming platform. In a notable development, the National Football League has agreed to take a 10% stake in ESPN, while Disney’s media arm will assume control of NFL Network and other assets.
OpenAI May Seek $500B Valuation in Secondary Sale
Artificial intelligence leader OpenAI is reportedly in early discussions for a secondary share sale that could value the company at $500 billion, according to Bloomberg. The sale would allow existing employees and early investors to cash out.
The news follows a jump in ChatGPT’s weekly active users to 700 million, up from 500 million in March, and comes shortly after OpenAI secured $8.3 billion in new funding as part of a $40 billion round led by SoftBank.
Novo Nordisk to Cut Costs Amid Competitive Pressures
Novo Nordisk (NYSE:NVO) plans to implement cost-cutting measures in response to mounting competition in the weight-loss and diabetes drug markets. The maker of Wegovy has faced pressure from rivals like Eli Lilly and increasing use of compounded versions of its medications.
Though Novo maintained its full-year outlook, it comes shortly after the company cut its 2025 sales forecast, issued a profit warning, and reshuffled its executive leadership to reinvigorate growth.
In Q2, Wegovy sales rose 67% year-over-year to DKK 19.53 billion, while total revenue grew 18% to DKK 76.86 billion, falling short of market expectations. Shares in Copenhagen were little changed early Wednesday but have fallen more than 52% so far this year.
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