On the geopolitical front, Iran's Islamic Revolutionary Guard Corps threatened to close "all other export corridors that benefit the U.S. and its allies," Iranian media reported, after Iran shut the Strait of Hormuz and the U.S. reimposed a naval blockade of Iranian ports.
PayPal jumps on takeover report
Meanwhile, PayPal Holdings PYPL.O jumped 18.5% in premarket trading after sources said payments company Stripe and private equity firm Advent International have jointly offered to acquire it for $60.50 per share, valuing PayPal at more than $53 billion.
Markets watch inflation, Fed odds and chip stocks
The earnings season is gathering pace at a crucial point for equities. The S&P 500 has climbed more than 10% this year and, as of Tuesday's close, stood less than 1% below its record closing high from early June, leaving the rally vulnerable to any disappointment in corporate results.
Investors were also looking ahead to the Producer Price Index (PPI) report for more evidence on inflation trends, after a softer-than-expected Consumer Price Index (CPI) reading on Tuesday eased concerns about an imminent Federal Reserve rate hike.
Markets are currently pricing in about a 17% chance of a quarter-point rate increase at the Fed's next policy meeting, according to CME's FedWatch tool. The odds for the same were about 41% before the CPI data.
Wednesday also marks the second day of Federal Reserve Chair Kevin Warsh's testimony before Congress. Warsh told lawmakers on Tuesday that one data point was not enough to declare victory over inflation.
At 06:09 a.m. ET, Dow E-minis YMcv1 were up 108 points, or 0.2%, and S&P 500 E-minis EScv1 were up 13.5 points, or 0.18%. Nasdaq 100 E-minis NQcv1 were up 136.75 points, or 0.46%.
Chip stocks were mostly higher, helping lift Nasdaq futures. U.S.-listed shares of ASML ASML.O rose 3.8% after the Dutch semiconductor equipment maker raised its 2026 financial forecasts, reassuring investors about the strength of AI-driven demand.
Futures edge higher as earnings and inflation data loom
U.S. stock index futures edged higher as investors braced for a fresh wave of corporate earnings as well as producer inflation data due later Wednesday, while PayPal shares surged after reports of a $53 billion takeover offer.
Major U.S. banks kicked off the second-quarter reports season on Tuesday with stronger-than-expected results, buoyed by trading strength and a rebound in dealmaking.
BlackRock BLK.N reported a jump in second-quarter profit on Wednesday, as a stock market rally boosted the value of client assets. Its shares were 1.9% higher premarket in low volumes.
Investors are now awaiting numbers from Morgan Stanley MS.N for further clues on the health of financial firms and capital markets activity. Its shares were up 0.6%.
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