Wall Street looked set to extend its winning streak on Wednesday after the S&P 500 and Dow Jones Industrial Average closed at fresh record highs, fueled by strong corporate earnings and renewed optimism over global trade and geopolitical developments. Futures for the major U.S. indexes pointed higher before the opening bell, signaling continued investor confidence despite mixed earnings reports from some of the market’s biggest companies.
Dow Jones futures climbed 172 points, or 0.3%, while S&P 500 futures gained 0.4%. Nasdaq-100 futures remained largely unchanged as investors carefully assessed a fresh wave of quarterly earnings. Market attention centered on aerospace giant SpaceX and semiconductor leader AMD, both of which disappointed investors despite reporting solid financial results. Analysts noted that traders remain focused on whether corporate earnings can continue supporting Wall Street’s impressive rally.
SpaceX shares tumbled 11% in premarket trading after the company released its first quarterly earnings report since its public debut in June. Although the space company reported significant investments in artificial intelligence, its capital expenditures surged sixfold to $18.4 billion during the second quarter, raising concerns about rising costs and weighing heavily on investor sentiment. Meanwhile, AMD shares slipped 7% after its adjusted earnings narrowly exceeded analysts’ expectations, suggesting that investors had anticipated stronger growth from the chipmaker.
Not every earnings report painted a gloomy picture. Entertainment giant Disney emerged as one of the day’s biggest winners, with its shares climbing more than 3% after posting stronger-than-expected fiscal third-quarter results. The upbeat performance reinforced investor confidence in consumer-focused companies and highlighted the mixed nature of this earnings season, where strong performers continue to offset disappointments from other sectors.
Tuesday’s powerful rally was driven not only by earnings but also by encouraging comments from U.S. Treasury Secretary Scott Bessent, who indicated that the United States and Iran could be nearing an agreement to reopen the Strait of Hormuz, a key global oil shipping route. The optimism pushed the S&P 500 above the 7,700 mark for the first time in history, while the Dow surged more than 900 points to another record close. Although oil prices declined following the announcement, they rebounded slightly on Wednesday, with West Texas Intermediate crude rising to around $76.30 per barrel and Brent crude climbing to approximately $80.63, as investors continued to monitor global energy markets.
source: cnbc
