U.S. stock futures were steady Wednesday evening after a positive close on Wall Street, fueled by strong bank earnings and renewed expectations of Federal Reserve rate cuts later this month.
By 20:13 ET (00:13 GMT), S&P 500 Futures stood nearly unchanged at 6,714.0, Nasdaq 100 Futures inched up 0.1% to 24,938.75, and Dow Jones Futures gained 0.1% to 46,517.0.
The S&P 500 closed 0.4% higher, while the Nasdaq Composite rose 0.7%, supported by upbeat results from financial heavyweights. The Dow Jones Industrial Average ended flat as investors digested mixed macro headlines.
Major banks including Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), and Bank of America (NYSE:BAC) posted earnings that exceeded expectations, driven by robust trading activity and investment banking revenue, signaling resilience in the financial sector despite economic uncertainty.
Fed Cut Bets Offset U.S.-China Trade Tensions
Optimism grew after Fed Chair Jerome Powell reinforced expectations for rate cuts at the central bank’s final two meetings of 2025, echoing Governor Stephen Miran’s remarks that called for swift monetary easing amid global trade headwinds.
The Federal Reserve’s dovish tone boosted risk appetite, though broader sentiment remained cautious as U.S.-China trade tensions resurfaced. Treasury Secretary Scott Bessent warned that the administration would maintain its firm negotiating stance “even if markets react negatively,” signaling limited room for diplomatic compromise.
Adding to geopolitical strain, President Trump suggested halting trade in cooking oil and accused Beijing of “purposefully not buying” U.S. soybeans — a fresh flashpoint in the ongoing trade standoff.
Other factors shaping market mood included:
- Prolonged U.S. government shutdown, now entering its third week.
- Delayed release of key economic data, complicating policy forecasts.
- Investor rotation into defensive sectors amid policy uncertainty.
Corporate Highlights: Salesforce, United Lead Moves
After hours, Salesforce Inc. (NYSE:CRM) rallied nearly 4%, lifting tech sentiment after the company raised its long-term revenue goal to over $60 billion by 2030 and announced a $7 billion share buyback program.
Conversely, United Airlines (NASDAQ:UAL) slipped 3%, despite strong third-quarter results and record revenue guidance for the upcoming quarter.
Investors now turn their attention to upcoming corporate earnings and economic releases that could offer fresh clues on the Fed’s next policy steps and the health of U.S. consumer demand.