Jeenah Moon | Reuters
U.S. stock futures inched higher Wednesday, as traders looked ahead to an important inflation report that will likely determine the near-term direction for interest rates.
S&P 500 futures and Nasdaq 100 futures climbed 0.3% and 0.7%, respectively. Dow Jones Industrial Average gained 72 points, or 0.1%.
CoreWeave shares jumped 18% in premarket trade after the cloud infrastructure mainstay's second-quarter adjusted operating income margin of 5% exceeded expectations.
Super Micro Computer also soared prior to Wednesday's open, adding 9% following a strong quarterly earnings and revenue update. U.S.-listed shares of Dutch neocloud specialist Nebius were also up more than 8%.
The moves come as investors await key inflation data. July's consumer price index, due at 8:30 a.m. E.T., is expected to show only a slight increase in monthly inflation, of 0.1% in the headline number and 0.2% for the core reading, according to economists polled by Dow Jones.
However, the estimated 12-month rates of 3.4% and 2.5%, respectively, remain above the Fed's 2% target. The consumer print is followed by July's producer price index, due Thursday.
A surprisingly hot inflation report will likely alarm investors who expect it will shape what the Federal Reserve does at its September meeting, as policymakers take a reprieve in August. The central bank has been laser focused on the impact higher pricing pressures are having on the U.S. consumer, with three dissenters at the last meeting voting to raise rates.
Those concerns have yet to abate, with U.S. oil prices pushing above $83 a barrel in morning trade, as hopes of a reopening of the Strait of Hormuz dwindle.
Across the Atlantic, European markets were choppy in early trade. The Stoxx 600 continental benchmark was trading just above the flatline. France's CAC 40 was down 0.21%, and the U.K.'s FTSE 100 was almost 0.1% lower. Germany's DAX added 0.32%, and the Italian FTSE MIB was marginally higher.
In Asia, markets ended mixed Tuesday. The Kospi jumped 3.68%. Japan's Nikkei 225 rose 0.83%. Mainland China's CSI 300 added 0.58%, while Hong Kong's Hang Seng Index lost 0.98% as of its last hour of trade. Australia's S&P/ASX 200 lost 0.45%.
Here's the latest ahead of the opening bell on Wall Street
Stock futures inched higher while Treasury yields were broadly flat ahead of Wednesday's inflation print.
July's consumer price index, due at 8:30 a.m. E.T., is expected to show only a slight increase in monthly inflation, of 0.1% in the headline number and 0.2% for the core reading, according to economists polled by Dow Jones.
CoreWeave shares jumped almost 18% in premarket trade after the cloud infrastructure mainstay's second-quarter adjusted operating income margin of 5% exceeded expectations.
World oil demand is set to fall further than previously expected this year, the International Energy Agency said Wednesday, as the impact of the closure of the Strait of Hormuz deepens.
Norway's $2.3 trillion sovereign wealth fund reported a record half-year profit of more than $182 billion on Wednesday, as a rally in Asian technology stocks helped the fund return 9.4%.
— Joseph Wilkins
Treasury yields are little changed as investors await key inflation data
U.S. Treasury yields were little changed on Wednesday morning as Wall Street awaits key inflation data due later in the session.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was largely flat at 4.682%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was flat at 4.212%. The longer-dated 30-year Treasury bond yield was unchanged at 5.231%.
— Joseph Wilkins
Wind turbine maker Vestas leaps 18% after second quarter profits surge
Afp | Getty Images
Vestas Wind Systems soared to the top of the Stoxx 600 in morning trade, gaining almost 18%, after the Danish wind turbine maker's adjusted earnings before interest and taxes reached 446 million euros in the second quarter, more than double the 205 million euros estimated by analysts.
Reporting its second-quarter earnings, Vestas said revenues rose 26.1% year-on-year to 4.7 billion euros during the three-month period. The strong showing prompted the Copenhagen-listed company to raise its full-year outlook, with revenue still expected to range between 20-22 billion euros, and EBIT margin before special items rising to 7-9%, up from 6-8%.
Wednesday's share price move put Vestas on track for its best day since November 2014.
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—Hugh Leask
Hormuz closure squeezes global economy as oil demand destruction intensifies, IEA says
World oil demand is set to fall further than previously expected this year, the International Energy Agency said Wednesday, as the impact of the closure of the Strait of Hormuz deepens.
The IEA forecast demand will drop by 1.6 million barrels a day in 2026. That's 510,000 barrels a day more than its last monthly prediction in July.
High fuel prices will continue to weigh on consumption, the institution said, though demand is expected to pick up through the year and return to growth in the final quarter.
South Korea’s Kospi jumps nearly 4% as Asia-Pacific markets end mixed
Asia-Pacific markets ended mixed Tuesday. The Kospi rose 3.68% to end at 6,579.04, while the small-cap Kosdaq index added 0.12% to end the trading day at 858.91.
Australia's benchmark S&P/ASX 200 lost 0.45% to 9,209.4.
Japan's Nikkei 225 rose 0.83% to close at 67,524.06, while the Topix ended 0.94% higher at 4,139.
Mainland China's CSI 300 added 0.58% to 4,690.92.
Hong Kong's Hang Seng Index lost 0.98% in its last hour of trade.
— Lee Ying Shan
World’s largest sovereign wealth fund posts record $184 billion profit as it reveals SpaceX stake for the first time
Norway's $2.3 trillion sovereign wealth fund reported a record half-year profit of more than $182 billion on Wednesday, as a rally in Asian technology stocks helped the fund return 9.4%.
The fund's first-half report came as its managers revealed a 0.05% stake in SpaceX, valued at just over $1.2 billion, in its first such disclosure of its exposure to Elon Musk's space tech giant.
The SpaceX stake is dwarfed by some of its other holdings, including a 1.3% stake in Nvidia worth $61.8 billion and a 1.2% ownership of Apple valued at $52.7 as of June 30.
Stock markets in Europe open mixed
The pan-European Stoxx 600 was up 0.16% shortly after 8:05 a.m. in London (3:05 a.m. E.T.) as most sectors and major bourses on the continent started the session in mixed territory.
A majority of regional sectors were in positive territory, with technology advancing almost 0.8%, followed by construction names and basic resources, which both added almost 0.7%.
Regional bourses were choppy. The Italian FTSE MIB led early gains among the continent's major bourses, rising 0.33% in Milan. In London, the U.K.'s FTSE 100 was hovering just above the flatline, while the German DAX was 0.22% higher in Frankfurt. Meanwhile, the French CAC 40 was down almost 0.1%.
Nvidia partner Foxconn edges lower despite second quarter profit beat
Anadolu | Anadolu | Getty Images
Shares in Foxconn were about 1.1% lower after the Taiwanese contract electronics maker reported a 35% jump in net profits for the second quarter to 59.97 billion Taiwan dollars ($1.86 billion), outweighing analyst estimates of 58.8 billion.
Gross profits at Foxconn, also known as Hon Hai, for the three months came in at 6.12% compared to 6.33% a year prior.
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A key player in the AI infrastructure buildout, and a major Nvidia partner, Foxconn said AI infrastructure is driving its advance, adding that it anticipates smart consumer electronics to see "significant growth" in 2026 revenues, with computing products driving revenues in the third quarter.
— Hugh Leask
European stocks expected to start the day lower
Alexander Spatari | Moment | Getty Images
European stock markets are set to open Wednesday's session mainly in the red as oil prices edged higher in early trade.
Stoxx 50 futures were flat ahead of the start of trading. The U.K.'s FTSE 100 was seen opening 0.24% lower, while both the German DAX and the Italian FTSE MIB futures were almost 0.1% down.
The French CAC 40 was hovering around the flatline in premarket trading.
—Hugh Leask
Oil prices rise as Red Sea, Gulf of Oman attacks heighten supply concerns
Oil prices rose Wednesday after attacks on vessels in the Red Sea and Gulf of Oman heightened concerns over risks to global shipping routes, even as diplomats signaled progress toward reopening the Strait of Hormuz.
Brent crude futures, the international benchmark, gained about 1.24% to $90 per barrel. U.S. West Texas Intermediate crude futures advanced 1.3% to $84.3 per barrel.
Iran-backed Houthi rebels killed six people in an attack on a cargo ship in the Bab el-Mandeb Strait on Tuesday, marking the first reported fatalities from attacks on Red Sea shipping in more than a year.
Hours later, U.S. forces said they fired missiles at a container ship that allegedly tried to break Washington's blockade of Iranian ports in the Gulf of Oman.
—Lee Ying Shan
K-beauty manufacturer Cosmax sees shares surge 19% after Citi upgrade, strong earnings
South Korean cosmetics manufacturer Cosmax's shares surged 19.5% on Wednesday in Seoul after Citi upgraded the stock to buy and raised its 12-month target price to 310,000 Korean won.
The company reported 795 billion won in revenue for the second quarter, up 27% year over year, while operating profit rose 21% to 74 billion won, according to a regulatory filing Tuesday.
Citi described the company's third-quarter guidance as "very positive" and said its upgrade was driven by accelerating revenue growth in South Korea and a turnaround in its U.S. business.
—Jenny Lee
South Korean chip stocks rally with SK Hynix gaining nearly 7%
South Korean chip stocks rallied sharply Wednesday, helping lift the benchmark Kospi as investors returned to some of the market's biggest semiconductor names.
Samsung Electronics jumped over 7%, while rival memory-chip maker SK Hynix gained 6.6%. Other technology-related names also advanced, with LG Innotek surging 10.93%, Samsung SDI adding 6.09% and Seoul Semiconductor rising 2.55%.
Japanese tech stocks on the other hand painted a mixed picture. Tokyo Electron rose 1.34% and Advantest gained 0.47%, while SoftBank Group slipped 0.53%. Japanese memory maker Kioxia traded 3.71% higher.
Chip-equipment maker Lasertec fell 2.53% and Renesas Electronics lost 1.31%. Taiwan's TSMC edged 0.42% higher.
—Lee Ying Shan
Samsung SDI shares jump 6% after GM battery development deal
Shares of Samsung SDI advanced more than 6% in early trading Wednesday in Seoul after the South Korean battery maker announced an agreement with General Motors to jointly develop next-generation battery cells for potential future electric vehicle applications.
Samsung SDI also announced that it had acquired GM's 49.99% stake in SynergyCells, the joint venture the two companies established in New Carlisle, Indiana. The company said the ownership change reflects shifts in market conditions since the joint venture was announced, including slower-than-expected growth in EV demand.
— Jenny Lee
Japanese yen edges toward 160; analysts say rate hikes alone won’t halt currency’s slide
The Japanese yen hovered around 159 against the dollar on Wednesday, edging closer to the psychologically important 160 mark after giving up about half of its gains from the recent U.S.-Japan intervention.
Analysts at Crédit Agricole CIB argued that the yen's persistent weakness cannot be explained by the U.S.-Japan interest-rate differential alone, pointing instead to what they called an "asymmetry of investment power" between the two economies.
Heavy U.S. investment in areas such as artificial intelligence, backed by both corporate and government spending, continues to draw capital toward the U.S., while Japan's planned public-private investment push has yet to fully take off, they wrote in a note on Wednesday.
That means simply raising Japanese interest rates may not be enough to sustainably strengthen the currency. "The interest rate differential is only one aspect of the outcome," CA-CIB said, arguing that the prescription that "just raising rates will stop the yen's depreciation" misses the underlying structural forces driving capital toward the U.S.
—Lee Ying Shan
South Korea's Kospi rises over 1% as Asia-Pacific markets trade mixed
Asia-Pacific markets opened mixed Wednesday. South Korea's Kospi added 1.17%, while the small-cap Kosdaq was down 1.35%.
Australia's benchmark S&P/ASX 200 declined 0.52%.
Japan's Nikkei 225 fell 0.17% while the Topix added 0.3%.
— Lee Ying Shan
Japan stocks set to rise as trading resumes after holiday
Asia-Pacific markets were set for a mixed open Wednesday, with Japanese stocks poised to edge higher as trading resumes after Tuesday's holiday.
Japan's Nikkei 225 Chicago futures contract was trading at 67,180 and its Osaka counterpart was last at 67,200 compared with the index's previous close of 66,970.22.
Hong Kong's Hang Seng index futures last traded at 25,533, below the benchmark's close of 25,652.82.
In Australia, futures for the S&P/ASX 200 traded at 9,147, compared with the index's Tuesday close of 9,250.6.
— Lee Ying Shan
An inflation report Wednesday should be a big deal for the Fed
An important inflation report Wednesday could give the Federal Reserve a little breathing room in its battle against inflation.
The consumer price index, due at 8:30 a.m. ET from the Bureau of Labor Statistics, is expected to show only a modest increase for July — 0.1% on the all-items headline number and 0.2% for the all-important core reading that excludes volatile food and energy prices, according to the Dow Jones consensus. On an annual basis, they are expected to show 3.4% and 2.5% respectively, both down 0.1 percentage point from June.
While that will still keep annual inflation rates well above the Fed's 2% goal, two straight muted monthly readings could help buy Federal Open Market Committee policymakers a little time before making a move on interest rates.
— Jeff Cox
Stocks making the biggest moves after hours
Check out the companies making headlines after hours.
Super Micro Computer — The data center infrastructure stock rallied more than 6% after Super Micro Computer issued rosy guidance for first quarter earnings and revenue, in addition to exceeding fourth quarter estimates. The company expects adjusted earnings in the range of $1.01 to $1.10 per share, far above the LSEG consensus estimate of 76 cents. Revenue guidance in the range of $14.5 billion to $15.5 billion also topped the anticipated $11.68 billion.
CoreWeave — The artificial intelligence cloud company saw shares gain about 14%. Second quarter adjusted operating income margin came in at 5% compared to the StreetAccount consensus estimate of 2.7%. Revenue of $2.58 billion was up 112% from the year-ago period, and it came in ahead of the $2.56 billion expected, per the LSEG consensus estimate.
Read the full list here.
— Sarah Min
Stock futures open little changed
Stock futures opened little changed Tuesday night.
Dow Jones Industrial Average futures rose by 25 points, or 0.05%. S&P 500 futures and Nasdaq 100 futures climbed 0.09% and 0.08%, respectively.
— Sarah Min
