Dow Futures looked subdued on Wednesday as investors closely watched the delicate ceasefire between Israel and Iran, which seems to be holding up for the time being.
Ahead of the opening bell at Wall Street, Dow Futures were trading 30 points down, while S&P 500 and Nasdaq Futures were barely managing to remain in the green.
The sentiments in the market seem uncertain ahead of the second day of US Fed chief Jerome Powell’s congressional testimony.
Jerome Powell highlighted the Fed’s cautious stance on interest rates on Tuesday amid rising tariff-driven price pressures.
He also signaled that a weaker-than-expected inflation report or signs of a softening job market could prompt the central bank to move forward with rate cuts sooner than planned.
Dow Futures: Earnings in focus
Investors are also bracing for key economic data due later this week, including the Q1 GDP figures and the closely watched PCE inflation report, both seen as crucial to confirm whether the recent trend of cooling inflation is holding firm.
On the corporate front, FedEx shares dropped around 5–6% in pre-market trading Wednesday after issuing another soft profit forecast, with the company blaming tariff-driven weakness in demand.
Meanwhile, earnings from heavyweights like Micron, BlackBerry, and Tesla are expected to shape market sentiment further as Powell’s testimony wraps up.
Oil prices slip further
Oil prices continue to remain a key variable in the inflation outlook.
US crude slipped to around $65 per barrel, fuelling hopes that easing energy costs could help bring down sticky core inflation.
For consumers and businesses alike, cheaper fuel means lower transportation and production costs which can relieve pressure on prices across the board.
With high stakes in oil, Wall Street investors will breathe a sigh of relief as cheaper fuel is a clear win for transport and manufacturing names like Boeing and Caterpillar.
But on the flip side, big oil players like Chevron could come under pressure, potentially dragging on the index in the short term.
That said, the overall tone in the market was upbeat.
The dip in crude is being taken as a sign that geopolitical tensions are cooling and that inflation may stay on a downward path.
The investors might take it as a good sign that could strengthen the Dow’s outlook in the months ahead.
Regional markets soar
The Asia-Pacific and European markets surged after relative calm in the Middle East.
Japan’s benchmark index climbed back to a four-month high on Wednesday. In South Korea, the Kospi 100 ended the day slightly higher at 3,108.25, up 4.61 points or 0.15%.
Meanwhile, Hong Kong’s Hang Seng index also saw a boost, as it closed around 24,475, up roughly 1.2% from the previous session.
The Stoxx Europe 600 index ended the day with a provisional gain of 1.2%, reflecting a broad rebound across European markets.
Germany’s DAX led the charge with a solid 1.6% rise, while France’s CAC 40 added 1%.
Over in the UK, the FTSE 100 hovered near the flatline, closing little changed as investors remained cautious.
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