U.S. stock index futures pointed to a mostly higher open on Wednesday, with traders looking to extend a record-setting rally even as post-earnings drops in Advanced Micro Devices and SpaceX threatened to weigh on sentiment. On Tuesday, major indexes, including the broad S&P 500, closed at a record high as expectations for a looming resolution to the Iran war lifted market sentiment.
The overnight tone remained constructive after the Dow Jones Industrial Average rose 1.71% to 54,085.88 , the Nasdaq Composite Index climbed 2.59% to 26,584.99, and the S&P 500 Index gained 1.79% to 7,736.52 points on Tuesday. Tuesday's rally pushed the S&P 500 above the 7,700 level for the first time ever, with the benchmark index and the Dow Jones Industrial Average notching fresh record closes. Focus now turns to a heavy morning earnings slate, a labor market statistics and a key services-sector data point.
US Stocks in Focus
SpaceX shares plunged on Wednesday after a surge in AI spending unnerved investors and clouded an otherwise expectation-beating quarter, with the stock down 11% in premarket trading. In SpaceX's first earnings report as a public company on Tuesday, Elon Musk's space firm said its capital expenditures jumped sixfold to $18.4 billion in the second quarter, ahead of analyst expectations, with the majority of the spending going toward AI.
Chip giant AMD also dropped 8.50% in premarket after posting adjusted earnings that only came slightly ahead of the Street's estimates. The chipmaker reported second-quarter revenue of $11.54 billion, beating analyst estimates of $11.28 billion, and adjusted earnings of $1.66 per share, beating estimates of $1.61 per share.
Premarket Snapshot
| Instrument | Level/Change |
|---|---|
| S&P 500 futures | 7789.25 (up 0.31%) |
| Dow futures | 54,405 (up 0.25%) |
| Nasdaq-100 futures | 29,850.75 (-0.04%) |
| US 10-year yield | 4.613% (down 1.2 bps) |
| WTI crude | $76.56 /bbl (up 1.04%) |
| Brent crude | ~$80.72/ bbl (up 1.71%) |
| Gold futures | ~$4,216.20/ oz (up 1.53%) |
| Dollar Index (DXY) | 99.82 (down 0.04%) |
| VIX | 16.35 (down 0.91%) |
| Bitcoin | $64,133.79 (up 0.69%) |
The latest NQ sentiment data shows a notable bullish divergence: profitable traders are 56% net long, while unprofitable traders are only 31% net long, according to MarketFramework's Positioning Edge tool. This means successful traders are significantly more bullish than losing traders, creating a 25-percentage-point gap in positioning.
Also on the tape, Eli Lilly is expected to post quarterly earnings of $6.58 per share on revenue of $20.69 billion before the opening bell, with shares up 2.5% to $1,145 in pre-market trading . Walt Disney is expected to post quarterly earnings of $1.85 per share on revenue of $25.41 billion before the markets open, with shares up over 1% to $99.20 in premarket. SanDisk is another name on watch as it prepares to report.
Asia Closes Sharply Higher
Asian equities rode Wall Street's coattails higher on Wednesday. Domestic traders were encouraged by a rally on Wall Street overnight that lifted the Dow and S&P 500 to fresh record highs, supported by robust corporate earnings and a sharp drop in oil prices, as investors weighed reports of an imminent interim agreement between the US and Iran to reopen the Strait of Hormuz.
Technology-heavy markets in Japan and South Korea led regional gains, with the Nikkei 225 and KOSPI Composite both surging more than 3.50%; Japanese tech-investing giant SoftBank Group soared nearly 14%, while South Korean chipmaker SK Hynix climbed 8%. The Nikkei 225 rose 2,341 points, or 3.66%, to close at 66,300.44, with gains led by Yamaha Motor, Softbank and Mitsui Kinzoku. Domestically, data showed real wages increased for a sixth consecutive month in June, reinforcing the case for additional Bank of Japan interest rate hikes.
Europe Pares Early Gains
European bourses opened on the front foot but have since given back their gains. The lackluster performance came after European stocks rose to record highs on Monday as lower energy prices drove benchmarks higher
Macro Data Preview
A series of crucial economic data releases could sway market dynamics on Wednesday, Aug. 5, 2026, including the ADP Non-farm Employment Change, which provides an early glimpse into private sector hiring trends ahead of the official government jobs report; the Services PMI and ISM Non-Manufacturing PMI, both key indicators of the health of the dominant services sector; and the EIA Crude Oil Inventories report. The ISM Services PMI in the US fell to 54.0 in June, down from 54.5 in May, matching market expectations — leaving the July print as the near-term benchmark for services momentum.
Technical Levels to Watch
- S&P 500: 7,700 acts as first support after Tuesday's breakout; a sustained hold above this level keeps the record-setting trend intact.
- Nasdaq-100: The index is testing resistance at 30,000 , with a decisive break needed to confirm continuation of the AI-led rally.
- Crude oil: WTI's slide toward the mid-$70s keeps the focus on Iran-Strait of Hormuz headlines as the swing factor.
