S&P 500 futures climbed on Wednesday after ASML lifted its annual sales forecast on AI demand, adding to gains that followed a cooler June inflation reading. Investors now turn to the Producer Price Index, the Fed’s Beige Book and a fresh wave of earnings.
US stock futures edged higher on Wednesday as chipmaking equipment maker ASML sent a bullish signal on AI demand and traders awaited a second batch of inflation data. Futures on the S&P 500 gained 0.2%, while Nasdaq-100 futures added 0.5% and Dow futures rose above the flat line.
ASML lifts the AI trade
Tech stocks rose in premarket trading after ASML lifted its annual sales forecast above Wall Street forecasts, citing AI demand. The company also said it plans to increase its chipmaking equipment production capacity by 30%, which soothed some concerns about bottlenecks in the chip supply chain.
That strength helped offset pressure from rising oil prices after President Trump said he would intensify attacks on Iran until the country relents. Per Bloomberg, Trump told Fox News on Tuesday the US would knock out all of Iran’s bridges unless the country comes to the table and negotiates.
Cooler inflation sets the backdrop
The advance built on Tuesday’s soft consumer price report. June inflation declined 0.4% on a monthly basis, the largest single-month decline since April 2020. Investors will now watch for the Producer Price Index and the Fed’s Beige Book for a second read on price pressures.
Markets will also get further signals from Fed Chairman Kevin Warsh, who testifies before the Senate Banking Committee on Wednesday. Chart watchers, meanwhile, point to intact bullish continuation patterns that keep a renewed advance toward record highs on the radar, with the S&P 500 last quoted at 7,543.89, up 0.38%.
Earnings pick up
Earnings season continues to build. Morgan Stanley and BlackRock report results after Wall Street’s message of economic resilience on Tuesday, with Johnson & Johnson and United Airlines Holdings also on the calendar. That followed comments from JPMorgan CEO Jamie Dimon on banking conditions: “It’s getting close to as good as it gets.”
Not every name shared the lift. IBM collapsed more than 25% on Tuesday, on track for its worst day on record, after the company preannounced results that were far below expectations.
Sources: Yahoo Finance, Seeking Alpha (snippet-based)
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