U.S. stock futures rose slightly on Wednesday, supported by optimism around the ongoing corporate earnings season. Traders are also eyeing a cautious financial outlook from ASML Holding (EU:ASML), which warned of a “significant” drop in sales to China, and the upcoming release of the Federal Reserve’s Beige Book as the government shutdown limits the flow of fresh economic data.
Futures edge up
By 02:34 ET, Dow futures were up 103 points, or 0.2%, S&P 500 futures gained 25 points, or 0.4%, and Nasdaq 100 futures advanced 131 points, or 0.5%.
U.S. markets closed mixed on Tuesday after recovering from earlier losses, with analysts pointing to a generally upbeat tone on strong bank earnings and solid results across several sectors. Optimism was also fueled by remarks from Fed Chair Jerome Powell, which reinforced expectations of additional rate cuts at the Fed’s final two meetings of 2025, following the 25 basis point reduction in September.
Comments from U.S. Trade Representative Jamieson Greer on CNBC helped ease concerns over renewed U.S.-China trade tensions. However, President Donald Trump later criticized Beijing for its lack of soybean purchases, calling it an “economically hostile act.”
ASML’s cautious outlook
ASML’s quarterly results showed strong bookings but came with a warning about weaker demand from China next year, tempering enthusiasm around its AI-fueled earnings momentum. The Dutch chip equipment maker, now Europe’s largest listed company, has benefited from a surge in global demand for its advanced lithography tools, which are critical to AI chip production.
CEO Christophe Fouquet said the company is seeing “positive momentum” in AI-related investments. A wave of partnerships between AI developers and chipmakers in September and October has intensified market enthusiasm — and sparked warnings of a potential bubble reminiscent of the late 1990s dotcom boom.
Net bookings for the quarter reached €5.40 billion, topping estimates. But with China representing nearly a third of new tool sales in the first nine months of 2025, the company forecast flat or only modestly higher revenue in 2026 — a lukewarm projection for a key AI player.
OpenAI eyes $1 trillion spending plan
OpenAI is reportedly drawing up a five-year strategy to meet more than $1 trillion in spending commitments to advance its AI ambitions, according to Financial Times. The plan involves raising new capital, forging debt agreements, and expanding revenue sources, including customized product deals with governments and businesses.
The startup remains unprofitable, and its capital commitments far exceed its income — a factor that has made some investors, including Microsoft, more cautious. OpenAI has also agreed to take on 26 gigawatts of capacity from Oracle Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., and Broadcom Inc., at a cost expected to exceed $1 trillion over the next decade.
Reports indicate the company generated $4.3 billion in revenue in the first half of 2025 but recorded a $13.5 billion loss.
United Airlines and other earnings in focus
Earnings season picks up steam Wednesday with several major companies set to report. United Airlines (NASDAQ:UAL) will announce results after the close. Investors will be watching closely for updates on travel demand trends through year-end.
In July, the Chicago-based airline had warned that third-quarter earnings could be impacted by operational challenges at Newark Liberty International Airport, one of its busiest hubs. Nonetheless, the company projected double-digit growth in business bookings compared with the prior quarter, helped by easing geopolitical tensions and improving economic sentiment.
Lenders Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS), along with Abbott Laboratories (NYSE:ABT), are also on Wednesday’s earnings calendar.
Beige Book takes center stage
With the flow of official economic data limited by the ongoing U.S. government shutdown, investors will focus on the Fed’s Beige Book for insight into business conditions across the country.
The report — which compiles anecdotal evidence on economic trends — comes at a time when uncertainty clouds the outlook for interest rates. The Fed’s September rate cut aimed to support a cooling labor market despite persistent inflation concerns.
With fewer data points available, markets are closely watching how the central bank will navigate rate decisions for the rest of 2025. Futures markets currently expect a quarter-point cut at the October 28–29 meeting, followed by another reduction in December, according to CME FedWatch Tool.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.
Leave a Reply