U.S. stock index futures ticked higher in early Wednesday trading, though gains remained modest as investors weighed escalating trade tensions. At 05:35 ET (09:35 GMT), Dow Jones Futures were up 70 points (0.2%), S&P 500 Futures rose 10 points (0.2%), and Nasdaq 100 Futures advanced 30 points (0.1%).
Wall Street ended Tuesday’s session on a mixed note, with overall sentiment relatively stable despite a wave of trade-related developments.
Trump Expands Tariff Threats to Copper
President Donald Trump intensified his trade rhetoric by sending letters to key global trading partners announcing new tariffs, while extending the implementation deadline from July 9 to August 1. Speaking at a cabinet meeting, Trump stated that the deadline would not be moved again and noted progress in talks with both the European Union and China. However, he warned that the EU could receive its own tariff letter “within days.”
Notably, Trump floated the idea of imposing a 50% tariff on imported copper, signaling that his trade policy is increasingly targeting strategic sectors. Copper plays a critical role in industries ranging from vehicle manufacturing and defense to energy infrastructure. The administration may also target additional sectors, including pharmaceuticals and semiconductors.
Treasury Secretary Scott Bessent claimed that tariff revenue has already reached $100 billion this year, with projections of up to $300 billion by year-end. He noted that the bulk of collections began in Q2 following the introduction of a 10% baseline duty, with expanded levies on steel, aluminum, and autos.
Fed Minutes Awaited Amid Rate Debate
Attention now turns to the Federal Reserve, with the minutes from its June meeting set to be released later today. Policymakers left rates unchanged at 4.25%–4.5%, emphasizing a cautious stance as they assess the broader economic impact of Trump’s tariff measures.
Strong labor market data last week further dampened expectations of an imminent rate cut. Still, President Trump has continued to call for lower rates, while renewing his criticism of Fed Chair Jerome Powell. He referenced a White House study suggesting that tariffs have not significantly contributed to inflation.
In a related development, The Wall Street Journal reported that White House economic adviser Kevin Hassett is emerging as a leading candidate to replace Powell. Hassett, a close Trump ally, is now viewed as a more likely nominee than former Fed Governor Kevin Warsh.
Goldman Sachs Warns of Limited Short-Term Equity Upside
Goldman Sachs strategists flagged limited upside for equities in the short term, citing high valuations and a weakening macroeconomic backdrop. While maintaining a neutral three-month outlook, the team led by Christian Mueller-Glissmann remains overweight on equities over a 12-month horizon, supported by structural drivers such as fiscal and monetary support, corporate restructuring, and strong shareholder returns.
However, the team cautioned that in late-cycle environments, equity valuations can overshoot—especially amid negative inflation trends outside the U.S. In the near term, they believe the risk of a market correction outweighs the chances of a significant rally.
Oil Prices Rise Despite Inventory Build
Crude oil prices edged higher, even after industry data showed a substantial rise in U.S. inventories. As of 05:35 ET, Brent futures were up 0.5% at $70.47 per barrel, while West Texas Intermediate gained 0.4% to $68.60 per barrel.
Both benchmarks had reached two-week highs on Tuesday, buoyed by concerns over supply disruptions following renewed Houthi attacks on Red Sea shipping routes.
According to the American Petroleum Institute, U.S. crude inventories unexpectedly rose by 7.1 million barrels last week—far exceeding the anticipated 2.8 million-barrel draw. Investors now await official data from the Energy Information Administration, due later today. The report is particularly relevant given seasonal demand strength during the Independence Day holiday weekend.
