(Editor’s note: The future prices of benchmark tracking ETFs and the headline were updated in the story.)
U.S. stock futures rose on Wednesday following two consecutive days of lower closes for the S&P 500 and Nasdaq 100 indices on Tuesday.
Investors are awaiting Nvidia Corp.‘s (NASDAQ:NVDA) first-quarter results scheduled to be released after the closing bell. Analysts are expecting NVDA to report second-quarter earnings of $1.76 per share on revenue of $79.04 billion.
Additionally, the Federal Reserve will be releasing the minutes of the Fed meeting later in the afternoon.
Meanwhile, the 10-year Treasury bond yielded 4.65%, and the two-year bond was at 4.10%. The CME Group's FedWatch tool‘s projections show markets pricing a 96.7% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.08% |
| S&P 500 | 0.30% |
| Nasdaq 100 | 0.68% |
| Russell 2000 | 0.36% |
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 0.45% at $737.00, while the QQQ was higher by 0.77% to $706.92.
Stocks In Focus
Toll Brothers
- Toll Brothers Inc. (NYSE:TOL) rose 2.30% in premarket on Wednesday after reporting upbeat earnings for the first quarter. The company posted quarterly earnings of $2.72 per share, which beat the analyst consensus estimate of $2.60 per share.
- Benzinga’s Edge Stock Rankings indicate that TOL maintains a weak price trend in the long, medium, and short terms, with a solid value score.
Stellantis
- Stellantis NV (NYSE:STLA) was up 0.82% as it signed a MoU with Dongfeng Group to establish a Europe-based joint venture for sales, distribution, manufacturing, purchasing, and engineering of Dongfeng’s new energy vehicles.
- Benzinga’s Edge Stock Rankings indicate that STLA maintains a strong price trend in the short term but a weak trend in the long and medium terms.
Roblox
- Benzinga’s Edge Stock Rankings indicate that RBLX maintains a weak price trend in the long, short, and medium terms.
AMC Entertainment Holdings
- AMC Entertainment Holdings Inc. (NYSE:AMC) gained 5.80% after the CEO Adam Aron bought 250,000 shares of company stock.
- Benzinga’s Edge Stock Rankings indicate that AMC maintains a strong price trend in the short term but a weak trend in the long and medium terms.
CAVA Group
- CAVA Group Inc. (NYSE:CAVA) jumped 6.63% after it posted first-quarter revenue of $438.27 million, beating the consensus estimate of $411.25 million and adjusted earnings of 20 cents per share, beating analyst estimates of 17 cents per share.
- Benzinga’s Edge Stock Rankings indicate that CAVA maintains a weak price trend in the short term but a strong trend in the long and medium terms, with a poor value ranking.
Cues From Last Session
Materials, communication services and consumer discretionary sectors recorded the biggest losses on Tuesday, pulling most S&P 500 sectors into negative territory, though health care and energy stocks bucked the trend to close higher.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.65% | 49,363.88 |
| S&P 500 | -0.67% | 7,353.61 |
| Nasdaq Composite | -0.84% | 25,870.71 |
| Russell 2000 | -1.01% | 2,747.07 |
Insights From Analysts
Professor Jeremy Siegel remains “constructive on the U.S. economy and on equities over the longer run,” but warns that the stock market faces near-term pressure. Following the U.S.–China summit, Siegel notes that the optimism previously supporting equities has “evaporated.”
Consequently, he expects a “flat-to-down period in equities,” particularly impacting the NASDAQ and momentum segments where speculation was highest.
He specifically highlights semiconductors and tech supply chains as vulnerable due to renewed friction over Taiwan. Furthermore, with the 10-year Treasury breaking above 4.50%, Siegel anticipates that rising oil prices and climbing yields will continue to squeeze the market.
Despite these headwinds, Siegel emphasizes that “the engine of the U.S. economy is still running.” Driven by solid growth and a resilient labor market, the domestic economy shows “no meaningful deterioration.”
This underlying strength is why Siegel clarifies, “I do not see this as the beginning of a bear market, and I am not calling for a major correction.”
Instead, he expects a temporary period of friction until oil stabilizes, bond yields level off, and the Federal Reserve clarifies its interest rate path.
Upcoming Economic Data
Here's what investors will be keeping an eye on Wednesday.
- Minutes of the Fed’s May FOMC meeting will be released by 2:00 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 1.87% to hover around $102.43 per barrel.
Gold Spot US Dollar fell 0.11% to hover around $4,477.15 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.09% higher at the 99.4200 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.23% higher at $77,416.32 per coin, as per the last 24 hours.
Asian markets closed lower on Wednesday, as Japan's Nikkei 225, South Korea's Kospi, Australia's ASX 200, India’s Nifty 50, China’s CSI 300, and Hong Kong's Hang Seng indices fell. European markets were mixed in early trade.
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