In the realm of investment, the broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) experienced a modest uptick of 0.3%, with the actively traded Invesco QQQ Trust ($QQQ) exhibiting a similar advance of 0.3% in Wednesday's premarket activity, as traders brace for a potential interest rate cut following the Federal Reserve's policy meeting later in the day. US stock futures were optimistic as well, with S&P 500 Index futures up 0.3%, while the Dow Jones Industrial Average futures advanced by 0.2%, and Nasdaq futures gained 0.1% ahead of regular trading hours. In real estate, US mortgage applications showed a slight decline of 0.7% for the week ending December 13, as 30-year fixed mortgages with loan balances of $766,550 or less edged up to 6.75%, with a noted drop of 3% in refinancing activity, as reported by the Mortgage Bankers Association. The upcoming release of critical economic data includes the November housing starts and permits bulletin, along with the Q3 current account report scheduled for 8:30 am ET.
Following these, the Atlanta Fed Business Inflation Expectations for December report will be available at 10 am ET, before the weekly EIA petroleum status bulletin is posted at 10:30 am ET. Investors will anxiously await the US Federal Reserve’s announcement regarding its policy-rate decision at 2 pm ET in Washington, which will be followed by a press conference featuring Chair Jerome Powell at 2:30 pm ET. In the world of cryptocurrencies, bitcoin faced a decline of 1.7%, mirrored by the ProShares Bitcoin Strategy ETF ($BITO), which also fell by 1.7% during this premarket activity. Examining the technology sector, the Technology Select Sector SPDR Fund (XLK) saw an increase of 0.5%, while the iShares US Technology ETF ($IYW) was up 1%.
The iShares Expanded Tech Sector ETF ($IGM.US) remained flat. Among semiconductor ETFs, the SPDR S&P Semiconductor ETF ($XSD) gained 0.9%, while the iShares Semiconductor ETF ($SOXX) rose by 1%. In specific company actions, shares of United Microelectronics ($UMC) climbed over 3% in recent Wednesday premarket trading, as the company reported a pivotal 30-year power purchase agreement with Fengmiao I Offshore Wind Farm for the procurement of over 30 billion kilowatt-hours of power. Shifting focus to the energy sector, the iShares US Energy ETF ($IYE) was inactive while the Energy Select Sector SPDR Fund ($XLE) moved up by 0.3%.
Oil States International ($OIS) stock jumped by 2.6% before the market opened, following the company's announcement of the successful sale of a previously idled Houston Ship Channel facility, yielding $24.8 million in net proceeds. From an industrial perspective, the Industrial Select Sector SPDR Fund ($XLI) advanced 0.2%, while the Vanguard Industrials Index Fund ($VIS) gained 0.1%, with the iShares US Industrials ETF (IYJ) remaining inactive.
Azul ($AZUL) stock experienced a premarket rise of 2.5%, as the company disclosed that its Azul Secured Finance subsidiary initiated offers to exchange its outstanding 11.500% senior secured second out notes due in 2029, as well as the 10.875% notes maturing in 2030. In consumer sectors, the Consumer Staples Select Sector SPDR Fund ($XLP) saw a minor increase of 0.1%, while the Vanguard Consumer Staples Fund ($VDC) advanced by 0.4%.
The iShares US Consumer Staples ETF ($IYK) remained inactive, alongside a 0.2% decline for the Consumer Discretionary Select Sector SPDR Fund ($XLY). The VanEck Retail ETF ($RTH) and the SPDR S&P Retail ETF ($XRT) also exhibited no trading activity. Tesla's ($TSLA) shares dipped by 1.5% in pre-market trading after reports surfaced about the departure of the company’s Shanghai plant manager, Song Gang, as noted in a staff letter. In health care, the Health Care Select Sector SPDR Fund ($XLV) experienced a 0.2% rise, with the Vanguard Health Care Index Fund ($VHT) up 0.3%.
The iShares US Healthcare ETF ($IYH) remained inactive, while the iShares Biotechnology ETF ($IBB) increased by 0.2%. Merck ($MRK) stock gained 1.4% in premarket trading after the company announced a global licensing agreement with Hansoh Pharma for the development, production, and commercialization of HS-10535, an investigational oral GLP-1 receptor agonist. In the financial sector, the Financial Select Sector SPDR Fund (XLF) saw an uptick of 0.2%.
Direxion Daily Financial Bull 3X Shares ($FAS.US) rallied by 0.8%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares ($FAZ), was slightly down by 0.7%. Broadridge Financial Solutions ($BR) shares rose by 1% before the bell after announcing a collaboration with the Crypto Carbon Ratings Institute to introduce a comprehensive platform aimed at aiding European companies in meeting the new sustainability reporting standards mandated under the European Union's Markets in Crypto-Assets regulations. In commodities, front-month US West Texas Intermediate crude oil advanced 0.9% to settle at $70.70 per barrel on the New York Mercantile Exchange, while natural gas prices increased by 1.6% to $3.36 per 1 million British Thermal Units.
The United States Oil Fund (USO) saw a 0.6% increase, while the United States Natural Gas Fund (UNG) declined by 0.6%. Gold futures for February also showed a slight gain of 0.03%, reaching $2,662.90 per ounce on the Comex, while silver futures retreated by 0.1% to $30.90 per ounce. In terms of ETFs, SPDR Gold Shares ($GLD) inched up by 0.1%, whereas the iShares Silver Trust ($SLV) saw a minor decrease of 0.4%..