U.S. equity futures pointed to a quiet start on Wednesday, with Wall Street showing little conviction as traders await Nvidia’s (NASDAQ:NVDA) earnings and continue to digest political uncertainty surrounding the Federal Reserve.
The chip giant, often seen as the bellwether for AI enthusiasm, is slated to announce second-quarter results after today’s close. Nvidia shares ticked up 0.5% in premarket activity, extending their momentum from Tuesday when the stock gained 1.1%.
Economic catalysts are thin today, but Friday looms large with the release of the Commerce Department’s July personal income and spending report. The data will include the Fed’s preferred inflation measure, with economists expecting the annual core reading to edge up to 2.9% from 2.8% in June. A hotter print could complicate the outlook for monetary policy.
CME’s FedWatch Tool indicates markets are heavily leaning toward a 25-basis-point rate cut in September, with the probability currently at 88.2%. Additional indicators—including weekly jobless claims, pending home sales, and the updated Q2 GDP estimate—will also shape investor sentiment later this week.
Tuesday’s session underscored the market’s indecision. Stocks moved sideways for much of the day before closing firmly higher. The Nasdaq advanced 94.98 points, or 0.4%, to 21,544.27, while the S&P 500 climbed 26.62 points, or 0.4%, to 6,465.94. The Dow ended 135.60 points, or 0.3%, higher at 45,418.07.
Bond markets offered some relief as short-term Treasury yields pulled back, a move many linked to speculation that President Donald Trump’s latest clash with the Fed could increase pressure for near-term rate cuts.
Trump announced via Truth Social on Monday that he was removing Fed Governor Lisa Cook, citing allegations of false statements on mortgage agreements. Cook fired back, insisting the president lacks the authority to dismiss her and pledging to challenge the move legally. The central bank added it will “abide by any court decision.”
Sector performance was mixed. Airline stocks jumped sharply, driving the NYSE Arca Airline Index up 2.3% to its strongest level in six months. Gold miners surged as well, with the NYSE Arca Gold Bugs Index climbing 2.2% to a 12-year high on firmer bullion prices. Networking names posted solid gains, highlighted by a 2.1% rise in the NYSE Arca Networking Index. Meanwhile, oil service companies lagged as crude oil prices slumped.
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