U.S. stock futures rose on Wednesday following Tuesday’s declines. Futures of major benchmark indices were higher.
Federal Reserve Chair Jerome Powell acknowledged that “by many measures… equity prices are fairly highly valued,” on Tuesday.
However, while acknowledging the high valuations, Powell sought to temper immediate fears. He added that he does not believe this is a “time of elevated financial stability risks,” suggesting the central bank is not yet alarmed about systemic threats from asset prices.
Investors are eyeing the release of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures Price Index or PCE Index, scheduled to be released on Friday.
Meanwhile, the 10-year Treasury bond yielded 4.10% and the two-year bond was at 3.56%. The CME Group’s FedWatch tool‘s projections show markets pricing a 94.1% likelihood of the Federal Reserve cutting the current interest rates in its October meeting.
| Futures | Change (+/-) |
| Dow Jones | 0.07% |
| S&P 500 | 0.16% |
| Nasdaq 100 | 0.29% |
| Russell 2000 | 0.06% |
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.14% at $664.15, while the QQQ rose 0.24% to $599.64, according to Benzinga Pro data.
Cues From Last Session
Energy, real estate, and utilities stocks recorded the biggest gains on Tuesday, leading most sectors on the S&P 500 to a positive close. However, information technology and consumer discretionary stocks bucked the overall market trend, contributing to U.S. stocks settling lower.
The Nasdaq Composite fell more than 200 points during the session, and the S&P 500 ended a 3-day winning streak.
Among specific movers, Nvidia Corp. NVDA shares fell 2.8% on Tuesday, a day after the company announced a $100 billion investment in OpenAI.
On the economic front, softer growth was signaled as the S&P Global U.S. Composite PMI slowed to 53.6 in September. In other data, the U.S. current account deficit significantly shrank by 42.9% to $251.3 billion in the second quarter.
The Dow Jones index ended 89 points or 0.19% lower at 46,292.78, whereas the S&P 500 index fell 0.55% to 6,656.92. Nasdaq Composite declined 0.95% to 22,573.47, and the small-cap gauge, Russell 2000, tumbled 0.24% to end at 2,457.51.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0.95% | 22,573.47 |
| S&P 500 | -0.55% | 6,656.92 |
| Dow Jones | -0.19% | 46,292.78 |
| Russell 2000 | -0.24% | 2,457.51 |
Insights From Analysts
Investment giant BlackRock is advising clients to look for “granular opportunities” in Europe, even as it maintains its overweight position on U.S. equities.
A new weekly commentary report highlights that while the firm’s “core risk stance has leaned on U.S. equities and the AI theme,” recent Federal Reserve rate cuts and a weaker U.S. dollar are unlocking significant value for dollar-based investors abroad.
The report, titled “Sticking with granular views in Europe,” argues that selectivity is essential and identifies three specific European sectors that have outperformed their U.S. counterparts in 2025. Leading the pack are financials, with a 32% year-to-date return, benefiting from “healthy balance sheets, a stronger fee business and improving profitability”.
Industrials follow with a 21% return, getting a boost from an increased focus on defense, infrastructure projects in Germany, and the ongoing AI buildout. Finally, utilities have posted a strong 19% return.
Beyond equities, the firm sees value in European fixed income, particularly when currency is hedged. BlackRock notes the large interest rate differential between the U.S. and Europe benefits American investors, as “hedging foreign bonds back into U.S. dollars captures this differential and boosts the income they offer”. This strategy can push yields on euro investment-grade credit to near 6% for U.S. investors.
The firm announced it is closing its “long-held relative preference for peripheral euro area government bonds over the core,” believing the value in that trade has been realized.
The bottom line, according to the report, is clear: “U.S. rate cuts support our risk-on stance, but we see ample if select opportunity in Europe”. BlackRock favors European credit and specific equity sectors like financials and industrials to capitalize on this environment.
Meanwhile, Ryan Detrick from Carson Research highlighted that the S&P 500 has hit 28 all-time highs in 2025.
He also highlighted that the current bull market in the U.S. was 36 months old and the bull market after World War II lasted for 67 months.
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will be keeping an eye on Wednesday;
- August’s new home sales data will be out by 10:00 a.m., and San Francisco Fed President Mary Daly will speak at 4:10 p.m. ET.
Stocks In Focus
- Cintas Corp. CTAS was up 1.20% in premarket on Wednesday ahead of its earnings report scheduled to be released before the opening bell. Analysts estimate earnings of $1.19 per share on revenue of $2.70 million.
- Thor Industries Inc. THO was down 0.24% as analysts estimate earnings of $1.24 per share on revenue of $2.33 billion after the closing bell.
- KB Home KBH was 0.38% higher ahead of its earnings report as analysts estimate earnings of $1.50 per share on revenue of $1.59 billion.
- Micron Technology Inc. MU rose 1.86% after reporting better-than-expected fourth-quarter financial results for fiscal 2025 and issuing a strong revenue forecast for the first quarter.
- AAR Corp. AIR slipped 0.70% despite posting upbeat earnings for the first quarter after the closing bell on Tuesday.
- Ares Acquisition Corporation II AACT jumped 4.39% following the company’s successful fundraising for its planned merger with Kodiak Robotics, a company specializing in autonomous vehicle technology.
- Youxin Technology Ltd. YAAS surged 56.22% after the company revealed plans to acquire a business in China’s enterprise customer relationship management sector.
- SHF Holdings Inc. SHFS skyrocketed 209.82% following the company’s announcement of a major equity financing agreement filed with the Securities and Exchange Commission.
- Aqua Metals Inc. AQMS popped 99.51% following disclosure of insider stock transactions by CEO Stephen Cotton.
Commodities, Gold, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 0.17% to hover around $63.30 per barrel.
Gold Spot US Dollar rose 0.17% to hover around $3,770.50 per ounce. Its last record high stood at $3,779.33 per ounce. The U.S. Dollar Index spot was 0.33% higher at the 97.5850 level.
Asian markets closed mixed on Wednesday, as Hong Kong’s Hang Seng, Japan’s Nikkei 225, and China’s CSI 300 indices rose. Whereas, India’s S&P BSE Sensex, Australia’s ASX 200, and South Korea’s Kospi indices fell. European markets were lower in early trade.
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