The Japanese yen weakened to a fresh 40-year low against the dollar on Wednesday, while Dow futures slipped on Tuesday night after the 30-stock index posted its best first half in five years.
The yen fell to162.28 per dollar, data from LSEG showed, extending losses from
the previous session as traders remained alert for possible intervention by Japanese authorities.
During the day's regular session, all three major averages rose to close out a strong first half of 2026. The blue-chip
Dow added 136.46 points, or 0.26%. The S&P 500 gained 0.79%, while the technology-heavy Nasdaq Composite jumped 1.52%.
In the first six months of 2026, the Dow notched a rise of 8.9%, marking its best first-half performance since 2021. In the same time period, the broad market S&P 500 rose 9.6% and the Nasdaq climbed 12.8%. The small-cap
Russell 2000 surged nearly 22% to clinch its best first-half performance since 1991.
A
surge in chip and AI-related names has been driving the stock market, with Tuesday's gains partly due to a rise in chip stocks. In fact, a record chip rally added $2 trillion in combined market capitalization to Micron, Intel and Advanced Micro Devices in the second quarter of 2026.
Australia's
S&P/ASX 200 was little changed, trading 0.05% lower.
Heading into the second half of the year, Paul Hickey, Bespoke Investment Group co-founder, said that he still likes the sector, but it may be getting a bit too hot.
"Over the long term, we still like the semis, but I wouldn't be aggressive towards it here. This bull market is an AI-driven bull market, that's the theme. If this bull market is going to continue, it's going to be led by tech and probably semis, but they don't have to beat consistently, and you can't go in that kind of pattern for good," he said on CNBC's "
Closing Bell: Overtime" Tuesday afternoon. "So I think in that respect they've gotten a little bit…extended. So I would maybe take a breather here."
On Wednesday,
Federal Reserve Chairman Kevin Warsh will speak at the European Central Bank Forum on Central Banking in Sintra, Portugal. Since taking the helm, Warsh has set out to remake the U.S. central bank through the adoption of new task forces that will comprehensively review the Fed's current strategies to define modern monetary policy. Traders have also been anticipating that the central bank could be poised to hike interest rates in the ongoing battle against inflation.
In terms of economic data due Wednesday, traders will watch out for the latest reading on June's ADP employment survey, alongside June's ISM manufacturing and final global PMI manufacturing readings.
Asia-Pacific markets open mixed
Japanese business sentiment more optimistic than expected: BOJ Tankan survey
Optimism among large Japanese manufacturers climbed to its highest level in over six years over the past four years, according to the Bank of Japan's
quarterly Tankan survey.
The Tankan, a closely watched poll that measures business sentiment among domestic companies, climbed to 22 for large Japanese manufacturers, up from 17 in the last quarter and beating the 16 expected by economists polled by Reuters.
A positive figure on the Tankan indicates that optimists outnumber pessimists, and vice versa.
Business sentiment among large non-manufacturing businesses stood at 37, a multi-decade high according to LSEG data, up from 36 in the first quarter. That also defied Reuters poll expectations of 35.
— Lim Hui Jie
Asia markets set to open higher after Wall Street caps strong first half
Asia-Pacific markets were set to open higher Wednesday, tracking gains in the U.S as Wall Street wrapped up a strong first half and second quarter.
Japan's benchmark Nikkei 225 was set to open higher, with the futures contract in Chicago at 71,115 and the contract in Osaka last trading at 70,990 against the index's last close of 70,062.32.
Futures for Australia's benchmark S&P/ASX 200 were at 8,784 compared with its last close of 8,778.7.
— Lee Ying Shan
Correction: This post has been updated to reflect that Hong Kong markets are closed for a public holiday.
Constellation Brands adds 4% following earnings beat
Shares of
Constellation Brands added 4% in extended trading, after the beverage producer posted fiscal first-quarter earnings and revenue that exceeded expectations.
In its last quarter, Constellation earned $3.43 per share on an adjusted basis, while analysts polled by LSEG had penciled in $3.20 per share. The company's $2.43 billion revenue also exceeded the anticipated $2.39 billion.
Constellation's beer revenue came in at $2.28 billion, higher than the $2.24 billion StreetAccount estimate.
— Lisa Kailai Han
Wedbush’s Dan Ives initiates SpaceX at outperform, $190 price target
Wedbush technology analyst Dan Ives initiated coverage of
SpaceX at an outperform rating and $190 price target.
Ives' price forecast calls for upside of 11% from where the stock closed on Tuesday at $170.86.
"It's much more of an AI play, and that's our whole view from a data perspective," Ives said on CNBC's "
Fast Money" on Tuesday afternoon. "This is one — today, from revenue — is super expensive, of course. When you go out next two, three years — if they execute — I can argue this becomes one of the best AI plays in the market, and that's why we're bullish here."
— Lisa Kailai Han
Nike stock falls after China sales in its last quarter dropped 12%
In its last quarter, Nike reported adjusted earnings of 20 cents per share on $10.97 billion in revenue. Analysts polled by LSEG had expected earnings of 13 cents and revenue of $10.86 billion.
But shares dropped after the company said that sales in the Greater China market declined 12% to $1.30 billion. Even so, Nike still beat expectations of $1.24 billion in revenue.
— Lisa Kailai Han and Laya Neelakandan
<small>Source: CNBC</small>
