US stock market futures steady as Dow, S&P 500, Nasdaq hover near record highs amid Fed rate cut hopes and Middle East ceasefire stability

Economic Times

6 hours ago

TIMESOFINDIA.COM US Stock market today holds steady as Dow, S&P 500, and Nasdaq futures stay near record highs. Fed Chair Powell's comments boost hopes for rate cuts. Investors eye May PCE inflation report and US-led ceasefire between Iran and Israel under President Trump.
US stock market futures: Dow, S&P 500, Nasdaq futures hold steady as rate cut hopes and Middle East ceasefire keep bulls optimistic- US stock market today stayed largely steady as futures tied to the Dow Jones, S&P 500, and Nasdaq 100 hovered near record levels early Wednesday. Investors held onto hopes for interest rate cuts after Federal Reserve Chair Jerome Powell hinted at quicker policy moves during his testimony to Congress. Meanwhile, geopolitical tensions in the Middle East remained calm for now, with a US-brokered ceasefire between Israel and Iran showing signs of stability under President Donald Trump's diplomatic push. On Tuesday, the S&P 500 ended the day at its highest closing level since February. Futures contracts for the S&P 500 (ES=F) were nearly flat Wednesday morning. Dow Jones Industrial Average (YM=F) and Nasdaq 100 (NQ=F) futures also traded sideways, following a positive session driven by both political and monetary optimism.
Markets opened strong this Wednesday with tech giants and AI leaders driving momentum on Wall Street. Here's a look at the key players moving the markets today: Apple (AAPL) is trading around $200.30 , slipping slightly by 0.58% in early hours. Still, its massive $3.28 trillion valuation keeps it firmly in the lead among U.S. tech giants.
is trading around , slipping slightly by in early hours. Still, its massive $3.28 trillion valuation keeps it firmly in the lead among U.S. tech giants. Microsoft (MSFT) climbed modestly to $490.11 , gaining about 0.86% , supported by steady cloud and AI demand.
climbed modestly to , gaining about , supported by steady cloud and AI demand. Amazon (AMZN) is trading up at $212.77 , adding 2.08% after bullish forecasts from analysts.
is trading up at , adding after bullish forecasts from analysts. Nvidia (NVDA) advanced to $147.90, up nearly 2.55%, as investors remain optimistic about AI chip demand and strong upward momentum. Here are today's biggest gainers and losers in the U.S. stock market: QuantumScape skyrocketed 35% after announcing a major breakthrough in EV battery development.
skyrocketed after announcing a major breakthrough in EV battery development. BlackBerry surged 9% on stronger-than-expected earnings.
surged on stronger-than-expected earnings. Nvidia continued its record-breaking streak as investor confidence in AI remains high. FedEx tumbled around 5-6% after issuing a cautious earnings outlook, even though it beat Q4 estimates.
tumbled around after issuing a cautious earnings outlook, even though it beat Q4 estimates. Micron pulled back slightly as traders wait for Q3 earnings after a solid 52% run-up this year
Markets received a notable lift on Tuesday after Jerome Powell, the Federal Reserve Chair, told lawmakers that officials could begin lowering interest rates 'sooner rather than later.' His remarks came during his semi-annual testimony before Congress and reignited investor confidence in upcoming rate cuts.
This optimism will be tested again as Powell delivers more testimony Wednesday. Traders have now increased their bets that a Fed rate cut might happen as soon as September, depending on the next round of economic data.
All eyes are now on Friday's release of the May Personal Consumption Expenditures (PCE) report, which is the Fed's preferred inflation gauge. Economists are predicting a modest uptick in core PCE compared to April.
If inflation remains in check or improves, it could give the Federal Reserve more flexibility to move forward with monetary policy easing, which could further support stock market growth in the second half of the year. Tensions between Israel and Iran have cooled following a ceasefire agreement brokered by President Trump. Since the agreement, there have been no reported military strikes between the two nations. President Trump, who publicly criticized both countries last week for violating the terms of the deal, is now pushing for more diplomatic engagement. The apparent calm in the region has eased fears of a broader conflict and helped maintain investor confidence across global markets.
US stock market futures are holding mostly flat today, showing caution as investors wait for more signals from the Federal Reserve and fresh economic data. The calm in the Middle East, thanks to the US-brokered ceasefire between Israel and Iran, is also helping stabilize market sentiment. Dow Jones futures: ~43,392, down slightly by 0.03%
S&P 500 futures: ~6,144.5, up by 0.02%
Nasdaq 100 futures: ~22,430, rising 0.10%
Tech stocks continue to provide a solid backbone for gains in the Nasdaq 100, with names like Nvidia, Apple, and Microsoft maintaining strong momentum. These companies have benefitted from ongoing AI investment trends and favorable market sentiment. Meanwhile, the S&P 500's recent highs reflect a broad-based rally across sectors, though financials and industrials have shown strength, especially in response to positive economic signals and cooling inflation pressures. Big tech is still in charge : Microsoft, Nvidia, and Apple continue to anchor the market's strength.
: Microsoft, Nvidia, and Apple continue to anchor the market's strength. Watch earnings : FedEx and Micron's results could set the tone for logistics and chip sectors.
: FedEx and Micron's results could set the tone for logistics and chip sectors. AI and EVs: QuantumScape and Nvidia are proof that investor money is following innovation.
With stock market futures stable and optimism still intact, investors are watching closely to see if the Dow, S&P 500, and Nasdaq can hit new all-time highs. The next big test will be Powell's second round of comments today and the release of the May PCE data on Friday. If these events support the narrative of falling inflation and coming rate cuts, markets could break past current levels and enter a fresh bull phase. Until then, traders are likely to stay cautious but hopeful. Q1. Will the Fed cut interest rates soon? Yes, Jerome Powell hinted the Fed could cut rates 'sooner rather than later.'
Q2. Is the ceasefire between Israel and Iran holding? Yes, the US-brokered ceasefire under President Trump is still holding with no new strikes reported.