Futures tied to the broad market index climbed 0.1%, while contracts linked to the tech-heavy Nasdaq were up 0.6%. Dow Jones Industrial Average futures fell marginally.
SpaceX traded higher by 3.5% in the premarket. The stock has been on fire since the rocket company's initial public offering last week, which was priced at $135. In that short time, shares are up around 50%, bolting the company's valuation
above that of Amazon's.
Chip stocks also rose in early trading, with ASML advancing 4% and Intel popping by 3%. The Invesco PHLX Semiconductor ETF (SOXQ) was up by 2.3%.
Asia markets closed mostly higher Wednesday, with Japan's
Nikkei 225 scaling a new peak, and rising 0.72%. South Korea's Kospi advanced 1.58%. Hong Kong Hang Seng Index was down 0.7%, while mainland China's CSI 300 gained nearly 1%. In Europe, the Stoxx 600 rose 0.3%.
The Fed will deliver its latest policy decision at 2 p.m. It will be the first under new Chairman Kevin Warsh, who will also hold a news conference at 2:30 p.m.
Investors are largely expecting that the Fed will keep interest rates unchanged at a target range of 3.5% to 3.75%. However, most Wall Street Fed watchers anticipate that Warsh
won't submit a "dot" to the FOMC's quarterly update of where individual officers expect rates to head from here.
Stocks are coming off a mixed session, with the Dow topping 52,000 for the first time, while the S&P 500 and Nasdaq fell.
The moves came after all three major averages rose on Monday, following an announcement from President
Donald Trump that the U.S. and Iran had reached a potential deal to end the war. Pakistani Prime Minister Shehbaz Sharif said that both sides have terminated their military operations, while an official signing ceremony will take place in Switzerland this Friday.
"I think we're in pretty good shape here for a solid finish to the quarter, and then, as we go into the second half, color us constructive," said Scott Chronert, head of U.S. equity strategy at Citi Research, on CNBC's "
Closing Bell: Overtime" on Tuesday afternoon.
The strategist said that he still expects leadership out of the artificial intelligence infrastructure cohort going into the second quarter reporting period. "With oil prices beginning to come off here as we get closer to an Iran conflict resolution, I think we can see the Fed moving to the sidelines," he said.
"What this ultimately does is extend the broadening playbook, which has been underway for the past month or so, all of which gives us, in our view, a path higher as we go into the back half of the year," Chronert said.
Japan's Nikkei 225 closes at record high amid broad gains in Asia markets
Asia markets closed mostly higher Wednesday, with Japan's Nikkei 225 reaching a record high.
—Justina Lee
European stocks mixed; Autos sink as BMW shares plunge 7% on profit warning
European markets were in mixed territory shortly after the market open on Wednesday, with losses led by the auto sector after a profit warning issued by Germany's BMW.
The pan-European
Stoxx 600 was hovering just after 8:10 a.m. in London (3:10 a.m. E.T.).
Regional sectors and major bourses were mixed. The Italian
FTSE MIB advanced 0.2% in early trade, while the U.K.'s FTSE 100 was almost 0.1% higher. In Paris, the CAC 40 was about 0.1% lower. Germany's DAX dropped 0.38%.
Shares in
BMW tumbled 7.5% in early dealmaking after the German auto manufacturer issued a profit warning on the back of a downturn in Chinese demand and the ongoing impact of the Middle East war. European autos and parts stocks fell 2.8%.
— Hugh Leask
HSBC shares gain nearly 2% as lender announces multi-year partnership with Google Cloud
The British lender announced the appointment of its first chief AI officer earlier this year. "AI is going to play an ever-increasing role in HSBC's future plans," said David Rice, HSBC's chief AI officer in a statement following his appointment.
Financial institutions are ramping up efforts in AI capabilities as they seek to boost efficiency and profits, as AI use becomes more ubiquitous in the banking industry.
The market share that global AI will have in the banking sector is expected to reach $143.56 billion by 2030 from $19.87 billion in 2023, according to a report by Grand View Research.
— Justina Lee
Japan exports in May grow at fastest pace in over three years, exceeding estimates
Japan's exports in May grew at their fastest pace since November 2022, rising 17% year on year, beating expectations, driven by robust demand for cars and semiconductors.
Growth was higher than the 16.2% expected by economists polled by Reuters, and up from the 14.8% in April.
The country's exports of semiconductors surged 61.2% in May from a year earlier in terms of value, powered by booming demand for artificial intelligence technology, while shipments of cars jumped 16.4%, according to the official data.
The economic data comes after the Bank of Japan raised its policy rate on Tuesday by 25 basis points to the highest in over 30 years at 1%, as the country sees rising inflation and the yen stays weak.
— Lim Hui Jie and Anniek Bao
South Korea's Kospi drops 1%, leading losses in Asia markets
Asia-Pacific markets opened broadly lower early Wednesday, with South Korea's Kospi leading losses.
Australia's benchmark
S&P/ASX 200 was 0.17% lower.
Hong Kong
Hang Seng index futures were last at 24,510, higher than the index's prior close of 24,493.95.
— Justina Lee
Asia-Pacific markets set to open mixed with focus on Fed rate decision
Asia-Pacific markets were set to open mixed on Wednesday amid easing tensions in the Middle East, while traders await the U.S. central bank's interest rate decision.
Japan's
Nikkei 225 was poised to decline after hitting a record intra-day high Tuesday, with the Chicago futures contract at 69,160 and its Osaka counterpart last traded at 69,110, compared with the index's previous close of 69,404.50.
Hong Kong
Hang Seng index futures were last at 24,510, higher than the index's last close of 24,493.95.
Futures for Australia's
S&P/ASX 200′s traded at 8,894, while the index closed at 8,917.70.
U.S. President
Donald Trump said Tuesday that he will be open to sharing details of a new U.S.-Iran peace deal with Congress, after some key Congress members called for an opportunity to review the deal before it is finalized.
The
preliminary deal between the U.S. and Iran will extend the ceasefire between the two for 60 days and create a framework for future negotiations over Iran's nuclear program and other issues.
—Justina Lee
Seven of the 11 GICS sectors end Tuesday's session higher
On Tuesday, seven of the 11 GICS sectors ended the session higher.
The financials sector was the day's outperformer, rising 1.49%. It was followed by utilities and industrials stocks, which respectively climbed 0.69% and 0.67%.
On the other hand, information technology stocks were the session's laggard, with the sector dropping 2.32%. Energy and consumer discretionary stocks respectively lost 0.25% and 0.11%, while the health care sector ending marginally lower, slipping 0.02%.
— Lisa Kailai Han
This week's earnings calendar
Stock futures open little changed
Stock futures opened near flat on Tuesday night.
Shortly after 6 p.m. ET, futures tied to all three major indexes were trading little changed.
— Lisa Kailai Han
<small>Source: CNBC</small>
