U.S. stock futures showed little change as traders prepared for the release of crucial U.S. inflation data and Nvidia’s highly anticipated quarterly earnings report. The markets are keenly watching the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation metric, and Nvidia’s performance which could signal broader market trends. Additionally, Federal Reserve Chairman Kevin Warsh’s upcoming speech at Jackson Hole is on investors’ radar, though he is expected to offer broad themes rather than direct policy hints.
U.S. stock futures remained largely unchanged early Wednesday, as Wall Street braced for two major market-moving events: the release of key U.S. inflation figures and Nvidia's highly anticipated quarterly earnings report.
Futures tied to the S&P 500 and Nasdaq-100 indexes showed minimal movement as of 2:48 a.m. ET, while Dow futures edged up 0.1%. This calm precedes a potentially volatile trading day driven by economic data and corporate performance.
The major U.S. averages are coming off a positive Tuesday session, buoyed by declining Treasury yields and lower oil prices. The S&P 500 closed up 0.3%, the Nasdaq Composite advanced 0.7%, and the Dow Jones Industrial Average added 160.24 points, marking its third consecutive day of gains.
Asian markets presented a mixed picture in early Wednesday trading. Japan's Nikkei 225 climbed 0.61%, and South Korea's Kospi surged 2.04%. Meanwhile, Australia's S&P/ASX 200 dipped 0.17%. In greater China, Hong Kong's Hang Seng index rose 0.68%, and mainland China's CSI 300 gained 1.07%.
Later today, at 8:30 a.m. ET, the U.S. Department of Commerce will release July's personal consumption expenditures (PCE) price index. This report, which tracks changes in prices for goods and services, is the Federal Reserve's preferred measure of inflation. Economists polled by Dow Jones anticipate a 0.1% month-over-month increase and a 3.6% year-over-year rise. For comparison, June's report showed a 0.1% monthly decrease and a 3.7% annual increase.
The inflation report takes on added significance amidst recent volatility in the bond market. U.S. Treasury yields touched multi-year highs last week, with the 30-year bond rate hitting levels not seen in nearly two decades. However, yields broadly retreated on Tuesday, with the 10-year yield shedding almost 8 basis points.
Nvidia Earnings and Jackson Hole Spotlight
Chipmaker Nvidia is set to unveil its second-quarter earnings after the market closes on Wednesday. Analysts surveyed by FactSet project earnings per share of $2.09 on revenues of $92.28 billion. Given Nvidia's staggering market capitalization of over $5 trillion, making it the largest S&P 500 component, its results could serve as a bellwether for the broader market and the artificial intelligence sector.
Investors are also keenly watching for Federal Reserve Chairman Kevin Warsh's speech on Friday at the annual Jackson Hole Economic Symposium in Wyoming. However, some analysts, like Piper Sandler's head of central bank policy Kurt Lewis, suggest Warsh may remain cautious, focusing on 'big-picture themes' rather than offering explicit monetary policy signals ahead of the Fed's September decision.
Temasek-backed investor behind Unitree pitches Singapore as Chinese robots’ path to U.S.
Chinese robotics firms facing U.S. restrictions on advanced robots could still access the American market by establishing genuine operations in Singapore, according to Choon Chong Tay, managing partner at Temasek-backed Vertex Ventures China. He suggests that startups with 'substantial content' and control over critical components in Singapore could navigate the new restrictions.
U.S. dollar slightly higher ahead of economic data, Jackson Hole
The U.S. dollar saw a modest uptick early Wednesday, driven by anticipation of upcoming inflation data and central bank remarks from Jackson Hole. The U.S. Dollar Index climbed 0.1% at 2:50 a.m. ET, maintaining its recent narrow trading range. Societe Generale's chief FX strategist Kit Juckes commented that a 'weaker dollar' during a 'second Trump Presidency' (a hypothetical future presidency implied by the 2026 article date) could be a disconnect from U.S. economic performance, suggesting dollar strength would only return with stronger domestic data pushing the Fed to tighten.
— Jenni Reid
Bitcoin little changed as short-covering rally fades
Bitcoin traded flat on Wednesday, hovering around $78,970 after briefly surpassing $81,000 on Tuesday. This followed a sharp rally that saw the cryptocurrency gain over 20% in three days, its strongest three-day performance since 2023. Ether also dipped 0.46% to $2,458.22. Matthew Sigel, VanEck's head of digital assets research, attributed Bitcoin's recent surge to renewed concerns about U.S. fiscal and monetary policy rather than Washington developments, noting that the rally was primarily driven by traders closing bearish positions.
— Lee Ying Shan
Alibaba shares gain 3% after executive share purchases
Alibaba shares climbed as much as 3% in Hong Kong trading on Wednesday. This rise followed significant share purchases by the Chinese tech giant's top executives. Chairman Joe Tsai bought 720,000 Hong Kong-listed shares on Tuesday, matching a purchase from the previous day, while CEO Eddie Wu acquired 350,000 shares on Monday. These executive investments come after Alibaba's shares plunged 8.5% in Hong Kong on Monday following the pricing of an HK$80 billion ($10.20 billion) share placement to non-U.S. investors.
— Jenny Lee
Oil falls on easing concerns of renewed tensions as the U.S. pivots to economic pressure on Iran
Oil prices retreated on Wednesday, as concerns over military conflict eased and the U.S. signaled a preference for economic sanctions over military action against Iran. International benchmark Brent crude futures for October delivery declined 2.52% to $86.35 a barrel, and U.S. West Texas Intermediate futures for October dropped 2.17% to $80.56 per barrel. Dan Coatsworth, head of markets at AJ Bell, noted that less severe-than-anticipated U.S. sanctions on Iran and falling government bond yields helped markets regain 'some poise'.
—Justina Lee
SK Innovation shares plunge 16% as company plans to merge battery materials unit
South Korean energy company SK Innovation saw its shares plummet by as much as 16% on Wednesday. The drop followed the company's announcement of plans to absorb its battery materials subsidiary, SK IE Technology. According to a regulatory filing, SK Innovation will issue new shares to SKIET shareholders as part of the merger, aiming to enhance financial stability, reduce risks, and improve operational efficiency. SK IE Technology was originally spun off from SK Innovation in 2019.
— Jenny Lee
Asia-Pacific markets start trading day mixed
Asia-Pacific markets began Wednesday's trading session with mixed results. Japan's Nikkei 225 fell 0.5%, while the Topix opened flat. South Korea's Kospi was down 0.12%, but the small-cap Kosdaq saw a 0.16% advance. Australia's benchmark S&P/ASX 200 climbed 0.34%.
— Lee Ying Shan
Asia-Pacific markets set for mixed open as U.S.-Canada trade tensions escalate
Asia-Pacific markets were poised for a mixed open on Wednesday, with investor caution fueled by escalating U.S.-Canada trade tensions, alongside the impending U.S. inflation report. Japan's Nikkei 225 was expected to rise, while Hong Kong's Hang Seng index futures suggested a potential rally. Australia's S&P/ASX 200 futures indicated a weaker start. Canada announced retaliatory tariffs against the U.S. on Tuesday, matching the 50% duties imposed by President Donald Trump after trade talks broke down, affecting over 700 U.S. goods worth approximately $20 billion.
— Lee Ying Shan
Falling oil prices are bullish for equities, according to Nancy Tengler
Nancy Tengler, CEO of Laffer Tengler, believes that falling oil prices could provide another boost to the stock market. She told CNBC's "The Exchange" that oil acts as an "inflation buster," and the previous month's oil price recession led to a negative and then flat inflation print, which bodes well for equities in the fall. Tengler remains optimistic about the overall economic landscape, highlighting strong manufacturing numbers as a positive sign for stock market focus.
— Deena Zaidi
Bitcoin isn't oversold but not overbought yet, says Katie Stockton
Bitcoin's recent rally still has room to grow after clearing a critical technical level, according to Katie Stockton, managing partner at Fairlead Strategies. Since Stockton turned bullish on the cryptocurrency on August 17, Bitcoin has climbed over 25%. Speaking on CNBC's "The Exchange," Stockton noted that Bitcoin is neither oversold nor overbought, exhibiting "very strong short-term momentum and improved intermediate-term momentum." She believes Bitcoin is breaking out of a prolonged basing period that began in June, confirmed by clearing the 200-day moving average, suggesting a long-term basing phase with June-July marking the bottom. In contrast, she is less bullish on gold's recent rally, expecting it to meet resistance and be less long-lived than Bitcoin's expected upside due to Bitcoin's more prolonged down cycle and longer-term oversold reading.
— Deena Zaidi
Shares for Zoom fall on disappointing guidance
Zoom Communications shares dropped 4% in extended trading after the company issued third-quarter guidance that fell short of analyst expectations. For Q3, Zoom projects earnings per share between $1.46 and $1.48, below FactSet's estimate of $1.50 per share, and revenue guidance of $1.275 billion to $1.28 billion, just shy of the $1.28 billion analysts sought.
— Ananya Chetia
Stock futures open little changed
U.S. stock futures opened nearly flat on Tuesday evening. Futures linked to the S&P 500 and Nasdaq 100 showed marginal gains, while Dow futures were down by just 2 points at 6 p.m. ET.
—Darla Mercado
