U.S. stock futures continued rising on Wednesday after a day of strong recovery on Tuesday. Futures of major benchmark indices were higher in premarket.
President Donald Trump hinted at a deal with China. While speaking to the reporters at the White House, he said, "I think we will make a deal with China. If we don't make a deal, we will set it. I think they will want to be a part of the United States. We're doing great. This is the Golden Age.”
Meanwhile, Treasury Secretary Scott Bessent, during a private meeting hosted by JPMorgan Chase & Co. (NYSE:JPM), hinted at de-escalation with China.
He said that a deal is achievable even as the formal negotiations have not begun yet. Bessent acknowledged that current duties were untenable, but did not provide the specifics or the timeline of the deal.
The 10-year Treasury bond yielded 4.34% and the two-year bond was at 3.83%. The CME Group's FedWatch tool‘s projections show markets pricing a 94.2% likelihood of the Federal Reserve keeping the current interest rates unchanged in its May meeting.
| Futures | Change (+/-) |
| Dow Jones | 1.72% |
| S&P 500 | 2.17% |
| Nasdaq 100 | 2.49% |
| Russell 2000 | 2.21% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 2.08% to $538.21, while the QQQ advanced 2.50% to $455.59, according to Benzinga Pro data.
Cues From Last Session:
Fueled by strong earnings reports from 3M Co. (NYSE:MMM) and Verizon Communications Inc. (NYSE:VZ), alongside a more than 5% after-hours surge for Tesla Inc. (NASDAQ:TSLA), U.S. stocks closed higher Tuesday.
On the economic front, the U.S. Redbook Index increased 7.4% year-over-year in the week ending April 19.
All S&P 500 sectors advanced, led by financial, consumer discretionary, and communication services stocks.
As of Tuesday, the Nasdaq 100 index was down 17.76% from its previous high of 22,222.61 points. The S&P 500 index was 13.98% lower, as compared to the last record high of 6,147.43 points. On the other hand, Dow Jones was 13.06% down from its 52-week high of 45,073.63 points.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 2.71% | 16,300.42 |
| S&P 500 | 2.51% | 5,287.76 |
| Dow Jones | 2.66% | 39,186.98 |
| Russell 2000 | 2.71% | 1,890.28 |
Insights From Analysts:
Senior economist Mohamed El-Erian underscored in an X post that volatility was the dominant theme for U.S. financial assets as the stocks recovered sharply on Tuesday after Monday’s heavy selloff.
According to him, Tuesday’s session followed the “exact opposite session on Monday,” which had seen a decline in equities, a fall in the dollar, and a rise in gold prices.
He was of the opinion that “Given all the uncertainties in play, it is prudent to expect continued volatility in the weeks ahead.”
Ryan Detrick from Carson Research highlighted a trend in the market, the occurrence of which has marked the bottom within the NYSE in 1987, 2009, 2011 and 2020.
According to the data, over 89% of stocks advanced, with 89% of trading volume on Tuesday. This has happened on two days within nine trading days on April 9 and April 22.
This market signal's reliability stems from extreme market breadth, indicating oversold conditions, often preceding rebounds as investor sentiment shifts.
However, the past performance isn't a guaranteed predictor, especially with current pressures like Trump's tariff policies and potential Federal Reserve rate changes.
Detrick said that after such a market signal, the market was “Up nearly 25% on avg 6 months later.”
According to Louis Navellier of Navellier & Associates, investors, including Fed Chairman Jerome Powell, have been “needlessly worried” about inflation and stagflation that has not materialized. “The reality is that deflation has arrived in the wake of the lowest crude oil prices in the past four years, so investors, the Fed, and our allies have been unnecessarily worried over nothing,” he said.
“The stock market is a manic crowd that likes to react first and think second. It is now time to think and prosper during another spectacular earnings announcement season. Spring has arrived, and consumers are increasingly getting out and about, which is why the strongest retail sales in two years just occurred,” he added.
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will keep an eye on Wednesday:
- Chicago Fed President Austan Goolsbee will speak at 9:00 a.m., whereas St. Louis Fed President Alberton Musalem and Fed Governor Christopher Waller speak after that at 9:30 a.m. ET.
- April’s S&P flash U.S. services and manufacturing PMI will be announced by 9:45 a.m., and new home sales data for March will be out by 10:00 a.m. ET.
- Fed Beige Book will be out by 2:00 p.m., and Cleveland Fed President Beth Hammack will speak at 6:30 p.m. ET.
- Atlanta Fed President Raphael Bostic will speak at 7:40 p.m. ET.
Stocks In Focus:
- AT&T Inc. (NYSE:T) rose 1.00% in premarket on Wednesday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of 49 cents per share on revenue of $30.35 billion.
- Philip Morris International Inc. (NYSE:PM) was up 0.54% as Wall Street expects it to report earnings of $1.61 per share on revenue of $9.12 billion before the opening bell.
- GE Vernova Inc. (NYSE:GEV) advanced 1.80% as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of 42 cents per share on revenue of $7.54 billion.
- Chipotle Mexican Grill Inc. (NYSE:CMG) gained 2.02% as Wall Street expects it to report earnings of 28 cents per share on revenue of $2.97 billion after the closing bell.
- Tesla Inc. (NASDAQ:TSLA) jumped 6.86% despite posting weaker-than-expected earnings and sales results for its first quarter on Tuesday. However, Elon Musk said that his time at the Department of Government Efficiency was likely to drop “significantly.”
- Steel Dynamics Inc. (NASDAQ:STLD) was 1.63% higher after reporting stronger-than-expected first-quarter. The company shipped 3.5 million tons of steel during the first quarter and generated $230 million of operating income from its steel operations.
- EQT Corp. (NYSE:EQT) traded higher by 1.81% after projecting increased sales volume and adjusting 2025 expenditure plans for the year.
- Sonoma Pharmaceuticals Inc. (NASDAQ:SNOA) surged 77.25% after receiving U.K. MHRA registration for its hypochlorous acid acne products, set for launch in over 1,200 stores via a major pharmacy chain.
- AgriFORCE Growing Systems Ltd. (NASDAQ:AGRI) climbed 44.13% after it expanded Ohio Bitcoin (CRYPTO: BTC) mining with 500 more S19j Pro Antminers for its second site, boosting the total Ohio hash rate to 130 PH/s.
- MYT Netherlands Parent BV ADR (NYSE:MYTE) shares plunged by 30.72% after it decided to rebrand as LuxExperience B.V. with a change in its ticker from MYTE to LUXE on NYSE from May 1, 2025.
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 1.81% to hover around $64.82 per barrel.
Gold Spot US Dollar declined 1.83% to hover around $3,319.46 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.17% at the 99.0890 level.
Asian markets were higher on Wednesday, Hong Kong's Hang Seng, India's S&P BSE Sensex, Japan's Nikkei 225, China’s CSI 300, Australia's ASX 200, and South Korea's Kospi index all advanced. European markets were also higher in early trade.
Read Next:
Photo courtesy: Frontpage / Shutterstock.com