In the latest developments of the US stock market, equity indices are showing a positive trend in premarket trading. Investors are meticulously analyzing recent earnings reports while preparing for the highly anticipated policy announcement from the Federal Reserve regarding interest rates. On Wednesday, the Standard & Poor's 500 index experienced an impressive increase of 1%, with the Dow Jones Industrial Average rising by 0.4%.
The Nasdaq Composite saw even greater gains, climbing by 1.5% ahead of market opening. This upward momentum was echoed by Asian and European exchanges, which were also showing signs of strength. The crucial announcement from the Federal Reserve is scheduled for 2 pm ET, where Governor Jerome Powell will host a press conference at 2:30 pm.
The current projections indicate a staggering 97% likelihood that the central bank will maintain its key interest rate, according to the CME FedWatch Tool, reflecting market expectations and investor sentiment. On the economic front, several key reports are set to be released on Wednesday. At 7 am, the weekly mortgage applications bulletin will provide insights into housing market trends.
Following this, the ADP Employment Report for July will be available at 8:15 am, showcasing employment figures crucial for economic assessment. The second-quarter employment cost index will emerge at 8:30 am, providing further insights into wage trends, and the Chicago Purchasing Managers' Index is due out at 9:45 am, illuminating current manufacturing conditions. In the housing sector, the National Association of Realtors will release the pending home sales index for June at 10 am.
Simultaneously, the weekly EIA report on domestic natural-gas supplies will be published at 10:30 am. Additionally, last month's farm prices report is anticipated at 3 pm, wrapping up a day of significant economic insights. Focusing on individual stocks, Microsoft ($MSFT) shares are facing a downturn of 2.6% in premarket action, attributed to the company's fiscal fourth-quarter intelligent cloud revenue falling short of Wall Street consensus expectations.
In contrast, Advanced Micro Devices ($AMD) has surged by 9.1% after surpassing market expectations with its quarterly results. Starbucks ($SBUX) has also shown resilience with a gain of 2.8%, as the coffee powerhouse reaffirmed its full-year outlook despite reporting third-quarter sales that fell below analysts' predictions. Among other companies reporting their financial results before the trading day begins are well-known names such as Mastercard ($MA), T-Mobile US ($TMUS), Boeing ($BA), Marriott International ($MAR), Humana ($HUM), Johnson Controls International ($JCI), Kraft Heinz ($KHC), GE HealthCare Technologies ($GEHC), DuPont de Nemours ($DD), and Norwegian Cruise Line ($NCLH). Later in the day, tech giants like Meta Platforms ($META), Facebook and Instagram's parent company, alongside semiconductor leader Qualcomm ($QCOM), are expected to release their earnings after the market close. In premarket trading, Bitcoin showed a slight uptick of 0.3%, rising to $65,987, while West Texas Intermediate crude oil gained 2.6%, climbing to $76.65 a barrel.
On the bonds front, yields on 10-year Treasuries dipped by 0.4 basis points, settling at 4.14%. Gold also managed to gain ground, increasing by 0.5% to reach $2,463 an ounce, showcasing a diverse range of market movements indicative of investor sentiment and economic conditions..