Stock futures posted modest gains early Wednesday, following a mixed start to the second half of the year marked by investor pullback from major tech stocks.
Dow Jones Industrial Average futures rose 69 points, while S&P 500 futures were slightly higher, News.Az reports, citing CNBC.
The tech-heavy Nasdaq 100 futures climbed 0.3%, showing a tentative rebound after Tuesday’s losses.
During regular trading on Tuesday, the Dow surged 400 points, buoyed by strong performances from health care giants such as Amgen, Johnson & Johnson, and UnitedHealth.
eanwhile, the S&P 500 dipped 0.1%, and the Nasdaq Composite slid 0.8% as investors pulled away from high-growth tech stocks that had fueled the market's Q2 rebound.
The information technology sector of the S&P 500, home to big names like Nvidia, Palantir, and Advanced Micro Devices, shed over 1%, reflecting a rotation into more defensive sectors such as health care and materials.
Markets are also digesting Tuesday’s narrow Senate approval of President Donald Trump’s tax-and-spending bill, which now returns to the House where some GOP members remain opposed. Analysts warn that related fiscal uncertainty could fuel volatility in the fixed income markets, with ripple effects likely to impact equities.
“We expect to see more volatility in fixed income, even once they get the bill passed,” said Jose Rasco, Chief Investment Officer for HSBC Global Private Banking and Wealth Management Americas. “That’s going to bleed over into the equity markets.”
Despite short-term jitters, Rasco remains optimistic: “Once these things get resolved and once the [Federal Reserve] gets back in gear, there’s a lot of upside here.”
Investors are also keeping a close eye on U.S. trade policy, as Trump's 90-day tariff pause nears expiration next week. Any movement on trade agreements or extensions could further influence market direction.
Wednesday’s main data point is the ADP private payrolls report, expected before the market open. Economists surveyed by Dow Jones forecast a gain of 120,000 jobs in June, a sharp uptick from May’s 37,000.
However, the real market mover is likely to be Thursday’s official U.S. jobs report, set to be released during this holiday-shortened trading week.
Key takeaways include:
- Stock futures inch up after tech-led losses.
- Dow gains offset by Nasdaq weakness as traders rotate into defensive sectors.
- Trump’s fiscal bill progresses; fixed income volatility expected.
- Eyes on payroll data and looming tariff deadline.
