U.S. stock futures rise moderately; earnings season proceeds

U.S. stock index futures edged higher on Wednesday, recovering from the prior session’s weakness as investors assessed additional corporate earnings and weaker-than-expected economic data.

At 05:45 ET (09:45 GMT), Dow Jones futures rose 145 points (0.3%), S&P 500 futures gained 15 points (0.2%), and Nasdaq 100 futures advanced 17 points (0.1%).

Major indices declined on Tuesday amid growing concerns over the U.S. economy following Friday’s disappointing jobs report. The S&P 500 posted its fifth loss in six sessions, while the Dow recorded its sixth decline in seven days.

Economic Concerns Fuel Rate-Cut Expectations

Markets remain under pressure on fears that volatile trade policies from the Trump administration could dampen economic activity. The ISM services PMI fell unexpectedly to 50.1 in July from 50.8 in June, signaling near-stagnation in a sector that accounts for about 80% of U.S. GDP.

Adding to the unease, input cost pressures surged to their highest level in nearly three years, raising stagflation concerns—a combination of slow growth and rising prices. This backdrop has strengthened expectations for a Federal Reserve rate cut in September, following weak payroll data and dovish remarks from San Francisco Fed President Mary Daly.

While no major economic releases are due Wednesday, attention will turn to speeches from several Fed officials, including Susan Collins, Lisa Cook, and Daly, for guidance on monetary policy.

Earnings Season Nears Completion; AMD and Snap Disappoint

The second-quarter earnings season has been broadly positive, with over 80% of companies surpassing estimates. Still, some notable disappointments weighed on sentiment.

Advanced Micro Devices (AMD) slumped in premarket trading after reporting weaker-than-expected data center revenue, especially compared to AI leader Nvidia (NVDA). Snap (SNAP) also fell sharply after a lackluster quarter highlighted challenges from intensifying AI-driven competition. Rivian Automotive (RIVN) dropped as its quarterly loss exceeded forecasts, citing trade-related supply chain issues.

Among blue-chip names, McDonald’s (MCD) and Walt Disney (DIS) are scheduled to report later today.

Oil Prices Rebound After Sharp Declines

Crude oil prices recovered from Tuesday’s five-week lows, supported by prospects of tighter U.S. sanctions on buyers of Russian oil and a larger-than-expected U.S. inventory draw.

At 05:45 ET, Brent futures rose 1.5% to $68.63 per barrel, while WTI gained 1.5% to $66.16. Both benchmarks fell more than $1 on Tuesday amid oversupply fears linked to OPEC+’s planned September output hike.

Further volatility came as Trump renewed threats to increase tariffs on India over its continued purchases of Russian oil, pledging additional measures this week after imposing 25% tariffs last week.

API data revealed U.S. crude inventories declined by 4.2 million barrels last week, far exceeding expectations of a 1.8 million-barrel draw, providing additional support to prices.