U.S. stock futures edged lower Wednesday evening, with investors bracing for a wave of corporate earnings and closely watching trade policy developments. Dow Jones Futures fell 0.2% to 44,385.0, while S&P 500 Futures dropped 0.2% to 6,292.50, and Nasdaq 100 Futures slipped 0.2% to 23,039.25.
Markets remain uneasy over President Donald Trump’s August 1 tariff deadline, particularly with proposed 30% duties on EU imports and a sweeping 200% tariff on pharmaceutical imports. While Trump confirmed a deal with Indonesia and expressed optimism about upcoming agreements with India and Europe, concerns about inflationary pressure linger.
Recent June CPI data showed persistent inflation, while softer producer prices offered only modest relief. Investors increasingly expect the Federal Reserve to keep rates steady, dimming hopes for policy easing in the near term.
Earnings Season Shifts Focus to TSMC, Netflix
Investor attention now turns to second-quarter earnings from Taiwan Semiconductor Manufacturing Co. (NYSE:TSMC) and Netflix (NASDAQ:NFLX), both scheduled to report Thursday.
TSMC’s report follows ASML Holding NV’s better-than-expected earnings, which were driven by strong AI-related demand. However, ASML’s warning that U.S. tariffs could derail 2026 growth rattled the semiconductor sector. TSMC’s earnings will be closely watched for signals about broader chip demand and potential supply chain disruptions.
Why TSMC matters:
- World’s largest contract chipmaker
- Key supplier for Apple and Nvidia
- A bellwether for global semiconductor trends
Netflix’s results will offer insight into the health of the streaming sector amid a competitive landscape and a softening advertising environment.
Markets had earlier found some relief from positive bank earnings earlier in the week, although cautious commentary from bank executives capped gains.
Trump Comments on Powell Offer Market Clarity
Markets were also reacting to President Trump’s latest remarks regarding Fed Chair Jerome Powell. On Wednesday, Trump said it was “highly unlikely” that he would dismiss Powell, though he left the door open depending on the outcome of an ongoing Fed renovation project investigation.
The clarification helped ease fears about the Fed’s independence, a growing concern as Trump and his allies intensified criticism of Powell’s reluctance to cut rates. Wall Street responded positively:
- S&P 500 rose 0.3% to 6,263.69
- Nasdaq Composite climbed 0.3% to 20,730.49
- Dow Jones Industrial Average advanced 0.5% to 44,254.78
Looking ahead, markets remain focused on earnings results, inflation data, and geopolitical developments, with volatility expected as the August 1 tariff deadline approaches.
