US index futures rose in pre-market trading on Wednesday following a recovery that ended a three-day losing streak. Analysts question the sustainability of this rebound, predicting continued volatility but highlighting opportunities in the earnings season, with major reports from companies like Disney and CVS Health on the horizon.
At 4:42 AM, Dow Jones futures (DOWI:DJI) rose 221 points or 0.56%. S&P 500 futures gained 0.80%, and Nasdaq-100 futures advanced 0.94%. The 10-year Treasury yield stood at 3.929%.
In the commodities market, oil prices recovered due to rising tensions in the Middle East, though weak demand limited gains. West Texas Intermediate crude for September rose 0.33% to $73.44 per barrel. Brent crude for October rose 0.27% to near $76.69 per barrel.
In the US economic calendar for Wednesday, the June consumer credit report will be released at 2 PM ET. The market projects an increase of $9.7 billion in consumer credit, representing a slowdown from the $11.3 billion increase seen the previous month.
Asia-Pacific markets extended their gains on Wednesday. The Nikkei 225 rose 1.19%, closing at 35,089.62. Hong Kong’s Hang Seng grew 1.3% to 16,866.51, and China’s Shanghai Composite rose 0.09%. South Korea’s Kospi rose 1.83% to 2,568.41, led by Samsung (KOSPI:005930), which saw its shares rise 3.03% after positive news about its HBM3E chips. Australia’s S&P/ASX 200 increased 0.25%, closing at 7,699.8.
Bank of Japan Deputy Governor Shinichi Uchida assured that the bank would not raise interest rates while markets are unstable. His comments calmed reactions and strengthened the yen, emphasizing the need for caution and continuous monitoring.
In July, Japan reduced its holdings of foreign bonds by about $17 billion, suggesting the government may have sold these bonds to fund currency intervention. The country spent ¥5.5 trillion ($38.1 billion) to support the yen.
In China, July export growth slowed to 7%, below the 9.7% expected, due to tariffs and weak external demand. Imports increased by 7.2%, driven by anticipation of US chip restrictions. Analysts foresee more pressure on Chinese factories in the coming months.
Goldman Sachs (NYSE:GS) analysts predict that China’s production surplus will decrease in the coming years, except for electric vehicles and steel. Sectors like lithium batteries and solar modules may adjust production, but the surplus for EVs and steel is expected to persist until 2028.
European markets are up, driven by the global recovery after Monday’s fall. The banking and healthcare sectors show divergences, with banks rising while healthcare falls. However, Puma (TG:PUM) and Novo Nordisk (TG:NOV) shares fell -13.7% and 4.3%, respectively, due to disappointing financial results and forecast revisions.
In Germany, industrial production grew by 1.4% in June, surpassing the 1% estimate, driven by cars and electrical equipment. However, exports fell 3.4%, and other economic indicators were disappointing. The Bundesbank expects slow improvement in industrial activity and slightly better economic growth in the third quarter. The UK’s Halifax House Price Index data is awaited.
On Tuesday, US stocks closed higher, recovering from three days of losses, with investors buying at reduced prices and reacting positively to corporate earnings news. The Dow Jones rose 0.76%, the S&P 500 advanced 1.04%, and the Nasdaq grew 1.03%. The Commerce Department reported a reduction in the June trade deficit to $73.1 billion, while the Atlanta Fed raised its GDP growth projection to 2.9%. Uber (NYSE:UBER) shares soared 11%, and Caterpillar (NYSE:CAT) shares rose 3%.
For Wednesday’s quarterly reports before market open, Walt Disney (NYSE:DIS), Emerson Electric (NYSE:EMR), Sony Group Corporation (NYSE:SONY), Lyft (NASDAQ:LYFT), Shopify (NYSE:SHOP), Novo Nordisk (NYSE:NVO), CVS Health (NYSE:CVS), Global Payments (NYSE:GPN), Aurora Cannabis (NASDAQ:ACB), Icahn Enterprises L.P. (NASDAQ:IEP), MannKind (NASDAQ:MNKD), Oscar Health (NYSE:OSCR), Dynatrace (NYSE:DT), DNOW (NYSE:DNOW), ACM Research (NASDAQ:ACMR), ODP Corporation (NASDAQ:ODP), Brink’s Company (NYSE:BCO), and more will report.
After the market closes, numbers are expected from Sarepta Therapeutics (NASDAQ:SRPT), HubSpot (NYSE:HUBS), Occidental Petroleum (NYSE:OXY), Robinhood Markets (NASDAQ:HOOD), Fastly (NYSE:FSLY), SolarEdge Technologies (NASDAQ:SEDG), Magnite (NASDAQ:MGNI), AppLovin (NASDAQ:APP), Digital Turbine (NASDAQ:APPS), Energy Transfer LP (NYSE:ET), Dutch Bros (NYSE:BROS), Aspen Aerogels (NYSE:ASPN), Coeur D’Alene Mines Corp. (NYSE:CDE), among others.