(Editor’s note: The ETFs and economic data have been updated.)
U.S. stock futures were higher on Wednesday, as the Dow Jones, Nasdaq 100 and S&P 500 indices rose, following Tuesday’s higher close.
On Tuesday, President Donald Trump stated that U.S. strikes in Iran would continue into the next week, warning of “very hard” hits as Strait of Hormuz tensions escalate. He declared that "Oil is flowing like never before" due to American military operations keeping the shipping lane open.
Wall Street parsed a fresh wave of economic data on Wednesday. The Labor Department reported that the Producer Price Index (PPI) for final demand slipped 0.3% in June, driven by a sharp decline in energy costs, bringing the 12-month unadjusted rate to 5.5%.
Simultaneously, the New York Fed’s July Empire State Manufacturing Survey revealed a substantial rebound in business activity, with its headline general business conditions index jumping ten points to 15.6, powered by a four-year high in shipments.
Meanwhile, the 10-year Treasury bond yielded 4.60%, and the two-year bond was at 4.20%. The CME Group’s FedWatch tool’s projections show markets pricing an 85.6% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.13% |
| S&P 500 | 0.15% |
| Nasdaq 100 | 0.40% |
| Russell 2000 | 0.02% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Wednesday. The SPY was up 0.31% at $754.18, while the QQQ advanced by 0.64% to $724.48.
Read Also: Stock Market: Will S&P 500 Open Up or Down Today?
Stocks In Focus
Pentair
- Pentair PLC (NYSE: PNR ) plunged 16.93% in premarket trading on Wednesday after it slashed its guidance for FY2026. Also, the resignation of Nicholas J. Brazis as CFO was announced effective July 10, while naming Robert P. Fishman as interim CFO, effective July 14.
- Benzinga’s Edge Stock Rankings indicate that PNR maintains a strong price trend in the short term but a weak trend in the long and medium terms, with a solid quality score.
ASML Holding
- ASML Holding NV (NASDAQ: ASML ) rose 3.40% after posting better-than-expected earnings and sales results for the second quarter.
- Benzinga’s Edge Stock Rankings indicate that ASML maintains a strong price trend in the short, long, and medium terms, with a solid growth score.
International Business Machines
- International Business Machines Corp. (NYSE: IBM ) rose 1.19% after declining over 25% on Tuesday after warning that its clients paused software and mainframe spending amid “rapidly evolving, industry-wide cybersecurity concerns.” It pre‑announced a messy quarter, guiding second quarter revenue to about $17.2 billion — up roughly 1% year over year but below Street estimates near $17.86 billion.
- Benzinga’s Edge Stock Rankings indicate that IBM maintains a strong price trend in the long, short, and medium terms, with a poor value score.
Aehr Test Systems
- Aehr Test Systems (NASDAQ: AEHR ) surged 29.15% after the company posted fourth-quarter results after Tuesday’s closing bell, beating estimates on the top and bottom lines.
- Benzinga’s Edge Stock Rankings indicate that AEHR maintains a weak price trend in the short and medium terms but a strong trend in the long term.
Intel
- Intel Corp. (NASDAQ: INTC ) rose 3.06% as it announced a €5 billion, or ~$5.7120 billion, investment to expand its Leixlip campus in Ireland, boosting capacity for its Intel 3 advanced process technology to meet surging demand for AI and server processors.
- Benzinga’s Edge Stock Rankings indicate that INTC maintains a strong price trend in the long and medium terms, but a strong trend in the short term.
Cues From Last Session
Energy, information technology, and communication services stocks recorded the biggest gains on Tuesday, while health care and consumer staples stocks bucked the overall market trend to close the session lower, though most S&P 500 sectors ended positively.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.018% | 52,508.27 |
| S&P 500 | 0.38% | 7,543.59 |
| Nasdaq Composite | 0.90% | 26,107.01 |
| Russell 2000 | 0.39% | 2,964.76 |
Insights From Analysts
Wharton School Professor Emeritus Jeremy Siegel remains highly optimistic about the U.S. stock market and the broader economy, pointing to a “constructive” fundamental backdrop.
Despite geopolitical tensions, he emphasizes that the market continues to display remarkable resilience, with major averages sitting near all-time highs.
A primary driver of this optimism is an extraordinary 24% year-over-year corporate earnings growth rate, which Siegel notes is “primarily the result of widening margins fueled by AI investment and productivity gains.”
He describes the current environment as “one of the most unusual profit cycles investors have witnessed in decades,” where businesses generate massive profits without relying on explosive GDP growth.
On the economic front, Siegel sees few signs of trouble, pointing to a healthy 2% to 2.5% second-quarter GDP growth rate. He expects policy stability from the Federal Reserve, arguing that temporary technology input costs, rather than broad-based demand, are keeping core inflation sticky.
He notes that the “Federal Reserve has little reason to raise interest rates further.” Ultimately, Siegel believes steady growth, healthy liquidity, and booming earnings are “the ingredients that have historically supported higher equity prices.”
Upcoming Economic Data
Here’s what investors will be keeping an eye on this Wednesday.
- Wholesale Inflation Cools: The U.S. Producer Price Index for final demand fell 0.3% in June after increasing 0.6% in May, representing a significant easing of supply-side price pressures. On an unadjusted basis, the final demand index rose 5.5% for the 12 months ending in June.
- The July Empire State Manufacturing headline index climbed 10 points to 15.6, signaling a strong expansion of business activity in New York State.
- New York Fed President John Williams will speak at a Partnership for New York City event at 8:45 a.m.; Federal Reserve Board Chair Kevin Warsh will present the Monetary Policy Report to the U.S. Senate Banking Committee at 10:00 a.m.; Fed Governor Lisa Cook will speak at an Exchequer Club Luncheon at 1:00 p.m.; and the U.S. Federal Reserve Beige Book will be out by 2:00 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 0.59% to hover around $79.81 per barrel.
Gold Spot US Dollar fell 0.65% to hover around $4,026.42 per ounce. The U.S. Dollar Index spot was 0.02% lower at the 100.9030 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 3.19% higher at $64,583.06 per coin over the last 24 hours.
Asian markets closed mostly higher on Wednesday, except China’s CSI 300 index. Australia’s ASX 200, India’s Nifty 50, South Korea’s Kospi, Hong Kong’s Hang Seng, and Japan’s Nikkei 225 indices rose. European markets were mostly lower in early trade.
