U.S. equity futures traded slightly higher on Wednesday after inflation data came in below expectations, easing concerns over additional Federal Reserve interest rate increases. Investors also continued to monitor a busy earnings season, with strong results from ASML (EU:ASML) reinforcing optimism around artificial intelligence investment, while geopolitical tensions between the United States and Iran remained firmly in focus.
Inflation data supports technology shares
S&P 500 futures gained 0.2 percent in early trading, Nasdaq 100 futures advanced 0.6 percent and Dow Jones futures slipped 0.1 percent.
The latest inflation report suggested price pressures are continuing to moderate, reducing expectations that the Federal Reserve will tighten monetary policy further in the near term. The softer inflation outlook provided support for growth sectors, particularly technology stocks, which are highly sensitive to interest rate expectations.
Trump signals continued pressure on Iran
Geopolitical uncertainty remained elevated after President Donald Trump said U.S. military operations against Iran would continue until Tehran agreed to negotiate.
Speaking to Fox News, Trump said discussions had taken place with Iranian officials but warned that military action would continue.
“They better make a deal,” he said, adding that Iran would otherwise, “not have anything left.”
Although Trump abandoned plans to introduce a shipping protection fee for vessels passing through the Strait of Hormuz, investors remain alert to any escalation that could disrupt global oil supplies and revive inflation concerns.
ASML highlights ongoing AI investment
ASML (EU:ASML) raised its full-year outlook after reporting second-quarter results that exceeded expectations.
The company now forecasts annual revenue of between 43 billion euros and 45 billion euros after second-quarter sales reached 9.33 billion euros.
The results suggest semiconductor manufacturers continue to invest heavily in artificial intelligence infrastructure, providing further support for companies supplying advanced chipmaking equipment.
IBM underlines changing technology spending
IBM (NYSE:IBM) remained under pressure after warning that customer spending is increasingly shifting towards artificial intelligence infrastructure instead of traditional software.
The sharp decline in IBM shares highlighted the growing divergence between companies benefiting from AI investment and those facing slower demand for legacy technology products.
Investors await more earnings
Attention now turns to another busy session of earnings releases, with BNY (NYSE:BNY), BlackRock (NYSE:BLK), Morgan Stanley (NYSE:MS) and United Airlines (NASDAQ:UAL) all scheduled to report.
The latest earnings updates are expected to provide fresh insight into corporate profitability, consumer demand and the broader outlook for the U.S. economy.
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