U.S. stock futures ticked slightly higher early Wednesday as investors monitored a tentative ceasefire between Israel and Iran and awaited further comments from Federal Reserve Chair Jerome Powell.
As of 05:15 ET (09:15 GMT), Dow Jones futures were up 20 points (0.1%), S&P 500 futures rose 4 points (0.1%), and Nasdaq 100 futures gained 25 points (0.1%).
Wall Street rallied in the previous session amid optimism that the ceasefire would hold. The S&P 500 climbed more than 1.1%, bringing it within 1% of its record high. The Nasdaq Composite advanced 1.4%, and the Dow Jones Industrial Average added 1.2%.
Ceasefire Holds, but Risks Linger
The ceasefire between Israel and Iran, brokered by President Donald Trump, appeared to remain intact Wednesday, a day after both sides announced a halt to a 12-day aerial conflict.
On Tuesday, Trump confirmed the start of the ceasefire but criticized both nations for launching strikes that had likely been pre-planned. Over the weekend, he authorized U.S. airstrikes targeting Iranian nuclear sites, claiming they had “obliterated” the facilities. However, U.S. intelligence sources suggest the attacks only marginally delayed Iran’s underground enrichment program by a few months.
Powell Testifies Again on Capitol Hill
Fed Chair Jerome Powell returns to Capitol Hill on Wednesday for the second day of his semiannual testimony, addressing the Senate after fielding questions from the House.
In remarks released Tuesday, Powell reiterated that the Fed is prepared to hold rates steady while monitoring inflation and economic conditions. Pressed by lawmakers—echoing calls from Trump—to cut rates more aggressively, Powell cautioned that elevated tariffs could reignite inflationary pressures.
Investors are also awaiting new home sales data, following a bigger-than-expected decline in consumer confidence in June. Despite strong employment figures, Americans have grown more anxious about inflation and trade policies.
FedEx Forecast Disappoints, Tesla Sales Slip
Wednesday’s earnings reports include General Mills (GIS), Micron Technology (MU), and Paychex (PAYX).
Meanwhile, FedEx (FDX) drew attention after issuing a weaker-than-expected profit forecast for the current quarter, raising concerns about broader economic momentum.
In Europe, Tesla (TSLA) posted a sharp drop in sales for May, according to government data, even as overall electric vehicle demand in the region continued to grow.
Oil Prices Rebound After Two-Day Slide
Crude oil prices edged higher on Wednesday, recovering from losses earlier in the week as fears of major supply disruptions from the Middle East eased.
At 05:15 ET, Brent crude futures rose 0.9% to $66.73 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 1% to $65.04.
Oil had fallen to near three-week lows after Trump’s ceasefire announcement calmed concerns over possible shipping or production disruptions in the region.
Supporting prices, the American Petroleum Institute reported a 4.3 million-barrel draw in U.S. inventories last week, following a larger 10.1 million-barrel decline the week before. Investors now await official data from the Energy Information Administration, due later today.
