U.S. equity futures traded near unchanged levels on Wednesday as investors balanced continued enthusiasm surrounding artificial intelligence with mounting geopolitical risks in the Middle East. Oil prices extended recent gains, the OECD lowered its global growth forecasts, and the Trump administration unveiled plans for new tariffs tied to forced-labor concerns. Meanwhile, SpaceX (NASDAQ:SPCX) is reportedly preparing a blockbuster initial public offering that could value the company at around $1.75 trillion.
Futures Hold Steady Following Fresh Records on Wall Street
U.S. stock index futures showed little movement in early trading after major benchmarks reached new highs in the previous session.
As of 03:31 ET, Dow futures were lower by 109 points, or 0.2%, while S&P 500 futures slipped 0.1%. Nasdaq 100 futures were broadly flat.
The S&P 500 notched its ninth consecutive record close on Tuesday, marking its longest streak of all-time highs since May 2025. The Dow Jones Industrial Average climbed 0.4% to a new record finish, while the Nasdaq Composite posted a modest gain.
All three major U.S. indices have now ended five straight sessions at record closing levels, a feat last achieved in 2017.
Chipmakers Continue to Lead the Market Rally
The semiconductor sector remained at the forefront of the market’s advance as investors continued to position for long-term growth driven by artificial intelligence.
A widely followed chip index rose 5.9% on Tuesday and has rallied more than 90% since hitting its 2026 low in March. Market participants continue to anticipate significant spending on AI-related infrastructure, including advanced computing systems, networking technology and large-scale data centres.
Among the strongest performers was Marvell Technology (NASDAQ:MRVL), whose shares surged after Nvidia chief executive Jensen Huang described the company as a potential “next trillion-dollar company.”
Attention later in the day will turn to fresh economic releases, including U.S. services-sector activity data and the latest report on private-sector hiring for May.
Renewed Military Activity Clouds Diplomatic Hopes
Developments in the Middle East remained a key focus for investors after fresh exchanges between U.S. and Iranian forces.
Reuters reported that the U.S. military said Iranian aerial attacks aimed at Kuwait, Bahrain and other targets had either been intercepted or failed. Iranian state media, meanwhile, claimed that the Islamic Revolutionary Guard Corps launched strikes against the headquarters of the U.S. Fifth Fleet in Bahrain in response to an American attack on a communications site south of Qeshm.
The renewed violence has weakened expectations that the conflict could be resolved in the near term, despite President Donald Trump insisting that discussions between Washington and Tehran are continuing.
OECD Cuts Growth Outlook Amid Rising Economic Risks
Concerns over the broader economic impact of the conflict were reinforced after the OECD downgraded its projections for global growth.
The organisation warned that prolonged disruption to energy markets could place additional strain on the world economy. OECD Chief Economist Stefano Scarpetta cautioned that, under a more adverse scenario, shipping disruptions could persist well into next year and potentially push some countries toward recession.
Oil Prices Advance as Hormuz Disruptions Remain a Concern
Inflationary pressures remain another major concern as higher energy costs continue to filter through the global economy.
The OECD estimates that, in a severe scenario, global inflation could rise by an additional 0.4 percentage points in 2026 and 1.3 percentage points in 2027.
Much of the concern centres on the Strait of Hormuz, a strategically important shipping route off Iran’s southern coastline that handled roughly 20% of global oil and liquefied natural gas exports before the conflict erupted in late February.
With negotiations between Washington and Tehran making little apparent progress, markets increasingly fear that restrictions to tanker traffic could persist, supporting crude prices and potentially forcing central banks to maintain tighter monetary policies.
Brent crude futures climbed 2.0% to $97.93 per barrel. Although prices remain below recent highs above $100, they continue to trade well above levels seen before the conflict began.
Trump Administration Unveils New Tariff Proposal
Trade policy returned to the spotlight after the White House proposed new tariffs targeting imports from 60 economies.
The proposal follows investigations conducted under Section 301 of the Trade Act, which concluded that these economies had not done enough to prevent the importation of goods produced using forced labor. U.S. officials argued that such practices place American businesses and workers at a competitive disadvantage.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” said U.S. Trade Representative Jamieson Greer.
Under the proposal, countries that have adopted forced-labor import restrictions, committed to implementing them under trade agreements, or maintain partial bans would face additional tariffs of 10%.
SpaceX IPO Could Value Company at $1.75 Trillion
In corporate developments, SpaceX (NASDAQ:SPCX) is reportedly preparing for one of the largest public offerings ever undertaken.
According to Reuters, the company plans to raise approximately $75 billion through the sale of around 555.6 million shares priced at $135 each, implying a valuation of roughly $1.75 trillion.
Reuters also reported separately that the transaction is expected to consist entirely of newly issued shares. The IPO roadshow is anticipated to begin on Thursday, while final pricing terms could be determined as early as Wednesday.
SpaceX is widely expected to kick off a wave of major technology listings, with artificial intelligence leaders OpenAI and Anthropic also expected to pursue stock market debuts in the months ahead.
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