U.S. stock futures edged higher Wednesday morning as investors digested strong earnings from major banks and encouraging inflation data amid growing concerns over new trade tariffs.
Futures climb on earnings, inflation data
- Dow Jones Industrial Average futures gained 160 points, or about 0.3%.
- S&P 500 futures added 0.2%, while Nasdaq-100 futures ticked up 0.1%.
Market optimism was fueled by second-quarter earnings from big banks. Bank of America and Goldman Sachs both beat Wall Street estimates, while Johnson & Johnson also posted better-than-expected results.
Producer prices remain flat in June
A key inflation metric — the Producer Price Index (PPI) — showed no month-over-month change in June, surprising economists who expected a 0.2% increase. Year-over-year, wholesale prices rose 2.3%, cooling from May’s 2.7%.
Core prices (excluding food and energy) also stayed flat on the month and rose 2.6% annually, down from May’s 3.2%.
The report comes after Tuesday’s Consumer Price Index showed a faster pace of inflation, driven in part by tariff-related pressures.
Bank earnings surge as volatility boosts trading desks
Highlights from major bank reports:
- Goldman Sachs posted Q2 earnings of $10.91 per share, well above estimates. Its trading revenue surged, marking the strongest equities quarter in its history.
- Bank of America reported earnings of $0.89 per share, slightly ahead of expectations.
- Morgan Stanley also topped expectations but saw a 0.3% dip in shares due to lagging investment banking performance.
- Johnson & Johnson shares climbed 2% after its medical device business and cancer drug sales exceeded projections.
ASML shares slide on uncertain 2026 outlook
In the tech sector, ASML stock plunged 7% after the semiconductor equipment maker warned of possible flat growth in 2026, citing “macroeconomic and geopolitical uncertainty,” particularly new tariffs. This overshadowed its Q2 earnings beat.
Trump’s tariffs rattle global markets
President Trump’s latest trade actions continued to ripple through the markets:
- Announced 30% tariffs on imports from Mexico and the European Union, effective Aug. 1.
- Confirmed a 19% tariff deal with Indonesia and signaled more tariffs are coming on pharmaceuticals and semiconductors.
- Trump’s evolving tariff policy has sparked global backlash — Denmark called the EU tariffs “completely unacceptable.”
Volatility ahead? Analysts weigh in
Some analysts warned of potential volatility ahead. According to BTIG’s Jonathan Krinsky, the S&P 500’s repeated closes above its 20-day moving average historically signal upcoming market swings.
Meanwhile, asset managers like Apollo Global and KKR saw gains after reports that Trump may soon sign an executive order expanding private market investment access in 401(k)s.
What happens next?
Markets are balancing strong corporate results with geopolitical uncertainty and a complex inflation landscape. While cooler wholesale inflation eased some Fed policy concerns, Trump’s tariff schedule could reshape consumer prices heading into the fall.
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