U.S. stock futures tied to the Dow Jones, Nasdaq 100, and S&P 500 indices fell on Wednesday, following Tuesday’s higher close.
Chip stocks were under pressure after stocks like Nvidia Corp. (NASDAQ:NVDA), Micron Technology Inc. (NASDAQ:MU), and Broadcom Inc. (NASDAQ:AVGO) slipped in pre-market trading, following Tuesday’s gains.
At the ASEAN Foreign Ministers’ meeting in the Philippines, U.S. Secretary of State Marco Rubio said that "The problem we’re having right now is that they’re not serious about talks.” This pushed crude oil prices higher.
Tech optimism offset anxieties surrounding the Iran conflict and U.S. trade policy. However, on Monday, President Donald Trump sparked renewed trade war fears by imposing 50% tariffs on select Canadian goods, including beer, milk, and chemicals.
Additionally, during a Senate hearing, Defense Secretary Pete Hegseth defended a $70 billion supplemental funding request as the Pentagon raised its estimated cost for the U.S.-Israel war against Iran to $37.5 billion.
Also, Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), Tesla (NASDAQ:TSLA), IBM (NYSE:IBM), and Texas Instruments (NYSE:TXN) are all set to report Wednesday after the closing bell.
Meanwhile, the 10-year Treasury bond yielded 4.62%, and the two-year bond was at 4.25%. The CME Group’s FedWatch tool’s projections show markets pricing a 78.1% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Wednesday. The SPY was down by 0.41% at $746.22, while the QQQ declined by 1.04% to $701.59.
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