US stock futures rise as tech shares find support
(Reuters) -U.S. stock index futures edged higher on Wednesday as Hewlett Packard Enterprise's results fanned AI optimism and tech shares gained, while investors awaited fresh data to better gauge the economic impact of President Donald Trump's tariffs.
Shares of HPE rose nearly 6% in premarket trading as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit.
AI chip leader Nvidia rose 1%, extending gains from early this week. Other chipmakers including Broadcom and Advanced Micro Devices also climbed.
A gauge of global stocks touched record highs despite uncertainty around U.S. trade policies.
Washington doubled its tariffs on steel and aluminum imports on Wednesday, which is also the target Trump had set for trading partners to make their best offers to avoid other punishing import levies from taking effect in early July.
The tariffs on imported steel and aluminum will jump to 50% from the 25% rate introduced in March.
Investor focus is squarely on tariff negotiations between Washington and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions between the world's top two economies simmer.
"All eyes are on China given it is currently the biggest loser from Trump's new trade policy, and it looks like we're still some way off from a deal between the two countries," said Russ Mould, investment director at AJ Bell.
At 06:03 a.m. ET, Dow E-minis were up 60 points, or 0.14%, S&P 500 E-minis were up 12 points, or 0.2%, and Nasdaq 100 E-minis were up 37.75 points, or 0.17%
May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance.
With fresh tariff announcements in place, the S&P 500 remains about 3% away from its record highs touched in February.
Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalized earnings growth in 2026.
Data scheduled for Wednesday includes ADP National Employment data for May as well as S&P Global and ISM's services sector activity readings for May.
Ahead of a U.S. central bank meeting next week, monthly jobs data due on Friday will likely offer more signs on how trade uncertainty is affecting the U.S. economy.
Among other early movers, Wells Fargo shares rose 3.6% after the U.S. Federal Reserve removed a $1.95 trillion asset cap imposed in 2018 following years of missteps.
Shares of cybersecurity firm CrowdStrike fell 6.9% after it forecast quarterly revenue below estimates.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
3 False Alarms That Sent the Stock Market Into a Frenzy (And How To Protect Your Money)
The stock market is often driven by emotion. Information breaks about a company struggling to reach profitability or wider economic news is communicated, and it can send the markets into hysteria. Pair that with social media, and it can cause real problems. Investors choosing to act on such emotion can create a real problem for their portfolios, particularly if the information isn't 100% accurate. Be Aware: Check Out: Protecting assets is essential for Americans as misinformation or lack of clarity rattles markets. Here are three times a false alarm brought turmoil to stocks and how to protect your money in those times. Hysteria in the market doesn't always mean it's a bad day for stocks. News around President Donald Trump's sweeping tariffs is one example. After Trump's Liberation Day for tariffs, the market saw vast losses impacting investors. That was until an inaccurate X post claimed the White House was considering a 90-day pause of tariffs. The news brought jubilee, with markets spiking nearly 10%, or $2.4 trillion in value, according to the Wall Street Journal. Unfortunately, the information was incorrect. The tweet, attributed to Walter Bloomberg, was ultimately deleted. The Wall Street Journal states the source of the information remains uncertain. The rally was brief, with the market closing largely flat for the day, with the S&P 500 up roughly 100 points. Read Next: Artificial intelligence (AI) has taken the markets by storm. Tech stocks, in particular, have benefited from the explosion of AI. When Chinese startup DeepSeek introduced a new, free AI assistant that claims to use significantly less data, the market reacted swiftly. On Jan. 27, investors worldwide unloaded tech stocks out of fear that DeepSeek would quickly amass power. Nvidia led the losers, creating a loss of $593 billion, according to Reuters, which was a record single-day loss in terms of market cap for any listing on Wall Street. Other companies joined in monumental losses, with the Nasdaq closing down over 4% for the day. Things aren't as bleak for Nvidia today, with the stock trading at roughly the same price it did at the beginning of 2025. The Nikkei in Japan is a leading stock exchange worldwide. It experienced tumult in August 2024 over fears related to issues with Yen carry trade. Fear spiked that investors would need to sell holdings to cover losses tied to their yen trades. The result was a loss not seen since 1987, with the Nikkei falling 12% on Aug. 5, 2024, according to Reuters. The S&P 500 followed, losing 8% in a two-day period. Thankfully, the loss was short-lived, as Reuters notes that the S&P 500 recovered its losses within two weeks, and the Nikkei followed suit in a month. Protecting assets can be a challenge for many Americans during false alarms in the stock market. Selling stocks is an understandable knee-jerk reaction. Such action can easily derail years of planning, especially if it's on the heels of fake headlines. Diversifying your portfolio weekly and rebalancing it regularly are good ways to safeguard assets. Volatility in the market is normal, but proper due diligence is crucial before making rash decisions that could result in significant losses. If you have a financial advisor, consider speaking with them to verify you're on target with your investment plan. Social media and potentially false headlines can drive emotion. Before making fearful decisions, do research to verify validity before taking action that could lead to needlessly painful losses. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 7 Things You'll Be Happy You Downsized in Retirement Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on 3 False Alarms That Sent the Stock Market Into a Frenzy (And How To Protect Your Money) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
19 minutes ago
- Business Insider
How to dismiss a high-profile employee without a Trump-Musk-style meltdown
Star talent can be hard to retain — and even harder to let go. The public fallout between President Donald Trump and Elon Musk this week may be an extreme example of a hotshot's exit going off the rails, but leadership experts said it underscores just how dicey it can be to part ways with a high-profile team member. "These are folks with big egos," Peter Cappelli, a management professor at the University of Pennsylvania's Wharton School, told Business Insider. "Most of the time they end up in court." Saying goodbye to a prominent employee doesn't have to be dramatic. But don't assume a beefy severance package and a non-disparagement agreement are enough to leave a company unscathed. "If people want to hurt you, they'll find a way to do it," Cappelli said. "Ask divorced couples." How to sever ties with a high-profile recruit When pushing out a high-flyer, employers should frame the person's departure as business as usual, said Ronald Placone, a communications professor at Carnegie Mellon University's Tepper School of Business "You try to normalize it," he said. "Things happen, people move on." Trump initially followed conventional wisdom in how he went about booting Musk from Washington last month. The president orchestrated a warm and fuzzy public send-off, thanking Musk for his service and providing a sensible explanation for his departure—in this case, that the billionaire was going back to focusing on his work at the multiple companies he helms. More common explanations are that the fired individual has decided to pursue other career opportunities, spend time with family, or engage in philanthropic endeavors. This tactic is aimed at protecting both the departee's reputation and that of the employer showing him or her the door. "They come up with a story," said Anna A. Tavis, chair of the human capital management department at New York University's School of Professional Studies. The goal is to avoid hurting the outgoing hotshot's chances of landing a new gig and the company's ability to find a replacement. "It's a question of, how do we save face?" she said. Give people something else to talk about Employers should also aim to draw people's attention elsewhere, Placone said. "One of Trump's strategies that often works is you just flood communication channels with other stuff, stuff you perceive is more favorable to your organization," he said. "You try to take some control by giving as many potential stories as possible so people don't home in on one." Trump did make some big announcements this week, including travel bans on several African countries, but leadership experts say the president also erred by openly rebuking Musk's harsh criticism of his signature tax bill on X. This kicked off the back-and-forth squabble that captured the world's attention on Thursday. "There's no need for that," Placone said. "In these high-profile situations, you want to say as little as possible. You don't want to add weight to the argument the other is putting forth." If Trump instead kept quiet, Musk would have been more likely to stick with critiquing the bill rather than upping the ante by accusing the president of illicit behavior, he said. "It would've eventually fizzled out," Placone said. Why some A-list hires don't last Employers most commonly end up quickly sacking flashy new recruits because they aren't as talented as advertised or they insist on working in a way that doesn't align with a company's culture, Tavis said. It even happens at the very top of the corporate ladder. For example, in recent years, the chief executives of Barnes & Noble, Starbucks, and CNN were pushed out of their jobs after brief tenures. "A lot of times they're overestimating their value," she said of people with a reputation for being above the fray, adding that due to the current tight labor market, notable departures are likely to increase. Sam Faycurry, CEO of artificial-intelligence and nutrition startup Fay in San Francisco, can relate. Last year, he hired a well-known rainmaker after a lengthy courtship only to quickly conclude that the person wasn't a good fit. To avoid bad blood, Faycurry said he tried making it seem as if it was the individual's decision to leave by pointing out how much they disagreed on core principles. "This person ended up exiting themselves" without any hard feelings, Faycurry said, adding that he was relieved because his main concern was being able to refill the position with a better-aligned A-list professional. "If the person is influential in a talent pool you want to recruit people from in the future, there's no benefit to having a relationship fall out," Faycurry said. "You're never truly parting ways."
Yahoo
19 minutes ago
- Yahoo
Pause These 3 Financial Priorities During High Inflation and Focus on These 4 Instead
When inflation is high, it means that the prices of average goods and services cost more than they did before. This can make it frustrating to figure out the right financial moves to make. Find Out: Read Next: While the U.S. inflation rate has actually cooled to a refreshing, and nearly ideal, 2.3%, down from highs seen during the pandemic, prices have not dropped, and newly imposed tariffs by President Donald Trump's administration threaten to drive inflation up again. Rather than panicking, financial experts offered some financial priorities to pause during periods of inflation, and those to focus on. It might sound counterintuitive, but according to Jamie Ebersole, a CFP, founder and CEO at Ebersole Financial, you actually want to pause new contributions to your savings account and reduce your checking account balance to the lowest possible level (within reason) during high inflation. That's because 'cash depreciates very quickly in times of high inflation. Wait until inflation rates have fallen below current interest rates to once again keep significant amounts of money in cash,' he said. Be Aware: High inflationary periods are also not a good time to be dropping extra mortgage payments on a fixed rate mortgage, Ebersole said. 'As inflation creeps up, the real rate of interest that you pay will decrease, making the loan much more affordable over the longer term,' he said. In essence, you will be paying back the loan in the future with depreciated dollars. 'The reverse is also true. When interest rates are very low, you should prepay your mortgage to reduce the effect of higher real future interest costs,' he said. It's important to pause your lower-priority items like large renovations and family trips, according to Shalini Dharna, a CPA and owner of Dharna CPA. Or these may need to be modified (think staycation or local tourist). You may pause cash savings in periods of high inflation, but you should keep investing in the stock market in the same periods, Ebersole said. 'Stocks tend to perform well in such periods and they are the best chance you have to grow your assets to keep up with or surpass inflation levels over the intermediate and longer term.' The exception here are bonds, which do not fare well with high inflation. However, I-Bonds or TIPS (Treasury Inflation Protected Securities) are a good investment in times where inflation is higher than expected, Ebersole said. 'Commodities such as gold and silver also tend to be good stores of value in periods where inflation is high.' In times of uncertainty, such as high inflationary periods, it is wise to seek the counsel of a financial planner or advisor, Ebersole said. 'Everyone's situation is different and there may be other opportunities to take advantage of higher inflation related to one's financing choices and asset portfolio.' During high-inflationary periods, navigating finances can become exceptionally difficult, Dharna said. Consumers should identify their 'top expenses' and prioritize them. These include things like housing payments and groceries items. 'Go through every expense and give it a rank,' she said. While retirement savings are always important, Dharna warned, 'not at the expense of having outstanding debt, as your debt is probably at a higher interest rate than your rate of return on investments.' Sometimes finding the money to get out of debt is 'as simple as cutting cable or another subscription' to provide enough cushion for your higher priority cash-flow items, she said. 'Slowly, one expense at a time, go through that list and figure out what is your non-negotiable and what may need to temporarily be paused as you navigate the current times.' Most importantly, Dharna said, this exercise is hopefully temporary. 'These economic ups and downs have and will come many times in our lifetime.' It doesn't mean you have to give up on any of your larger goals altogether, but it does mean some short-term changes to your financial output. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard How Far $750K Plus Social Security Goes in Retirement in Every US Region How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on Pause These 3 Financial Priorities During High Inflation and Focus on These 4 Instead Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
