US stock futures moved modestly higher on Wednesday after Wall Street kicked off the second half of the year with a rotation out of technology stocks. Investors are awaiting a key labour market print, while closely tracking progress on President Donald Trump’s sweeping tax-and-spending package.
Investors also await progress on trade deals with the return of President Trump's sweeping tariffs just a week away.
As of 7:40 AM EDT, Dow Jones futures were up 93 points, or 0.2 percent. S&P 500 futures gained 0.1 percent, while Nasdaq 100 futures held near the flatline, suggesting tech stocks may continue to face resistance.
The S&P 500 slipped 0.1 percent on Tuesday, while the Nasdaq Composite dropped 0.8%, led by weakness in high-growth tech names such as Nvidia, Palantir and AMD. Instead, investors rotated into defensive and value sectors like healthcare and materials. Blue-chip gainers like Amgen, Johnson & Johnson and UnitedHealth helped the Dow log a 400-point advance.
Technically, the S&P 500 has now formed a “golden cross,” where its 50-day moving average has risen above the 200-day average — historically seen as a bullish indicator. However, analysts note that momentum will depend on upcoming macro data and clarity on policy risks.
The Senate on Tuesday narrowly passed Trump’s long-awaited tax-and-spending bill — dubbed the “One Big Beautiful Bill” — which now heads back to the House, where GOP divisions remain.
ADP’s private payrolls report, due before the US open, is expected to show hiring rebounded to 100,000 in June from 37,000 in May. But the more consequential official jobs report is slated for Thursday.
Elsewhere, Tesla recovered 1 percent in premarket trade after Monday’s 5.3 percent slump on renewed political tensions involving Elon Musk. Meanwhile, Verint Systems surged over 12 percent in extended trade after Bloomberg reported it is in takeover talks with KKR-backed Thoma Bravo.
Asia trades mixed; Singapore hits record high
Asia-Pacific markets were mixed as investors reacted to Fed Chair Jerome Powell’s latest comments, where he suggested that rate cuts might already have begun if not for the inflationary impact of Trump's tariff measures.
Singapore’s benchmark index hit a fresh record, rising 0.45 percent to 4,008.85. Hong Kong’s Hang Seng gained 0.7 percent, and Australia’s ASX 200 rose 0.66 percent. In contrast, Japan’s Nikkei 225 dropped 0.56 percent and South Korea’s Kospi slipped 0.47 percent. Mainland China’s CSI 300 was largely flat.
The moves came after a choppy overnight session in the US, where the Dow ended 0.91% higher but the Nasdaq and S&P 500 closed lower amid tech-led selling.
European markets firm up; Spectris jumps on KKR deal
European shares traded higher in early deals on Wednesday, buoyed by corporate M&A activity, softer currencies, and a fresh read of US macro data.
The pan-European Stoxx 600 rose 0.35 percent, led by gains in mining and banking stocks. London-listed Spectris soared 5 percent after agreeing to a £4.1 billion takeover offer from KKR — an upgraded bid that marks a 96 percent premium to its June 6 price. UBS analysts said the new proposal better reflects the firm’s medium-term potential.
Meanwhile, Danish renewables giants Vestas and Orsted jumped 8.4 percent and 5 percent, respectively, after Citi analysts flagged that the Senate-passed version of Trump’s bill includes favourable provisions for wind energy. An earlier draft had triggered a sharp sell-off in wind stocks.
In currency markets, the US dollar strengthened against both the euro and the pound as investors digested stronger-than-expected US job openings and manufacturing data. The euro slipped 0.3 percent, while sterling fell 0.4 percent. Traders say the greenback remains highly sensitive to labour data and Powell’s nuanced tone on rate cuts.
ING analysts noted that Powell “refused to rule out a July cut,” adding that any significant payrolls disappointment this week could shift rate expectations materially.
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