Wall Street futures pointed moderately higher pre-bell Wednesday, following indications from Commerce Secretary Howard Lutnick that tariffs imposed by the Trump Administration on Canada and Mexico might be eased. This news has instilled a sense of optimism among investors, encouraging a positive market outlook.
The futures saw a notable increase, with the S&P 500 rising by 0.7%, the Nasdaq climbing by 0.9%, and the Dow Jones experiencing a gain of 0.6%. Asian exchanges also traded higher overnight, significantly led by a remarkable 2.8% gain on Hong Kong's Hang Seng index. This surge followed pledges from Beijing to enhance macroeconomic stimulus, which further encouraged market activity in the region.
In Europe, midday trading reflected a solid upward trend across the continent, attributed to favorable expectations surrounding increased defense spending. In pre-bell trading, noteworthy movements were observed among key players in the military and consumer goods sectors. Huntington Ingalls Industries (HII), a prominent military shipbuilder, saw its stock price soar by 11% after President Trump emphasized the importance of domestic shipbuilding during his address to Congress.
Additionally, major companies such as Brown Forman (BF.B), Campbell's (CFB), and Full Truck Alliance (YMM) are anticipated to report their earnings shortly before the market opens, adding further speculation on market movements. Investors are also focused on the economic calendar, noting the release of critical data such as the weekly MBA mortgage applications bulletin at 7 am ET and the ADP employment report for February at 8:15 am ET, which could provide insights into the employment landscape. Further economic indicators to watch include the S&P Global PMI composite final for February, which is set for release at 9:45 am.
Following this, the factory orders bulletin for January and the ISM Services Index for February are scheduled for disclosure at 10 am. Amidst these updates, the weekly EIA petroleum status report is to be announced at 10:30 am, which often influences energy market dynamics. Additionally, the Federal Reserve is expected to release its Beige Book at 2 pm, which is a comprehensive summary of economic activities and business conditions from the 12 regional branches.
In the premarket action, Bitcoin traded at $89,764, while West Texas Intermediate crude oil was lower at $67.22. The yield on 10-year US Treasuries remained steady at 4.25%, and spot gold was trading at $2,917 per ounce. These indicators reflect the complex interplay of market forces as traders position themselves in anticipation of upcoming economic data releases. Investors are particularly keen on the performance of the $US30 and $US500, which are pivotal in determining overall market sentiment..