U.S. stock futures ticked higher early Wednesday as investors assessed the impact of U.S. trade policy on corporate earnings and broader economic data. Dow futures rose by 227 points (0.5%), S&P 500 futures climbed 30 points (0.5%), and Nasdaq 100 futures advanced 74 points (0.3%) by 03:43 ET.
The gains follow a down session on Tuesday, where equities fell on concerns about the economic fallout from sweeping U.S. tariffs. Yum! Brands (NYSE:YUM), the parent company of KFC, warned that tariffs are weighing on consumer spending, denting its quarterly results. Caterpillar (NYSE:CAT), often viewed as an economic bellwether, said the duties could cost it as much as $1.5 billion this year.
Despite these concerns, the second-quarter earnings season has been relatively strong. Over 80% of reporting companies have exceeded analyst expectations, helping ease some recession fears. However, mixed economic data—including a soft July jobs report and a surge in services sector input costs—has raised concerns about stagflation, a mix of slow growth and rising inflation.
AMD Shares Drop as Data Center Sales Fall Short
Advanced Micro Devices (NASDAQ:AMD) shares slipped in after-hours trading following the release of quarterly results that underwhelmed investors. Data center revenue—crucial to AMD’s growth plans—rose 14% to $3.2 billion, in line with estimates, but far behind rival Nvidia’s 73% surge to $39.11 billion in its latest quarter.
CEO Lisa Su noted that AI chip revenue fell year-over-year, citing U.S. export restrictions to China and a transition to AMD’s next-generation MI350 chips. While AMD issued a stronger-than-expected Q3 revenue forecast of about $8.7 billion (plus or minus $300 million), it excluded MI308 AI chip sales to China, pending U.S. government license approval.
Earnings Watch: McDonald’s and Disney in Focus
Investors are also eyeing upcoming earnings from Dow components McDonald’s (NYSE:MCD) and Walt Disney (NYSE:DIS).
McDonald’s is expected to show strength in comparable sales and product innovation. Citi analysts anticipate improvements in customer traffic despite shifting consumer behavior and competitive pressure.
Disney’s results will be closely watched for updates on its streaming service, studio division, and theme parks. Attention will also center on the upcoming launch of its ESPN streaming platform. Separately, Disney’s ESPN has struck a deal to acquire NFL Network and related media assets, as the NFL takes a 10% stake in ESPN.
OpenAI Reportedly in Talks for $500 Billion Valuation
Bloomberg reports that OpenAI is exploring a potential secondary share sale that could value the company at $500 billion—up sharply from a prior $300 billion estimate. The sale would allow current and former employees to cash out.
This follows recent news that ChatGPT reached 700 million weekly active users, up from 500 million in March, and a reported $8.3 billion in new funding from major investors as part of a broader $40 billion round led by SoftBank.
Novo Nordisk Commits to Cost Cuts Amid Rising Competition
Novo Nordisk (NYSE:NVO) announced plans to cut costs as it contends with intensifying competition and copycat versions of its weight-loss drug Wegovy. Once Europe’s most valuable company, Novo has struggled to maintain momentum against challengers like Eli Lilly (NYSE:LLY).
Although the company reaffirmed its full-year guidance, this follows a recent profit warning and downward revision of its 2025 sales outlook. It also announced executive leadership changes to help revitalize growth.
In Q2, Wegovy sales surged 67% year-over-year to 19.53 billion Danish krone, while total group revenue rose 18% to 76.86 billion—but still missed estimates. Novo shares were flat in early Copenhagen trading but are down more than 52% year-to-date.
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