US stock futures were mostly unchanged early Wednesday as investors assessed market momentum with the S&P 500 nearing its all-time high.
Futures tied to the S&P 500 edged slightly higher, while Dow Jones Industrial Average futures dipped 12 points. Nasdaq 100 futures rose about 0.1%.
The muted moves followed a strong Tuesday session, in which the S&P 500 gained more than 1% amid falling oil prices and optimism over a potential ceasefire between Israel and Iran. That rally brought the index within 1% of its record high. The Nasdaq Composite also rose over 1%, and the Dow climbed more than 500 points. The Nasdaq 100 closed at a new record, gaining 1.5%.
Declining energy prices played a key role in boosting equities. West Texas Intermediate crude futures dropped 6% Tuesday, continuing a multi-day slide as investors bet on easing geopolitical tensions. A ceasefire agreement between Iran and Israel, announced by President Donald Trump, helped cool fears of broader regional conflict.
Despite lingering concerns over inflation, tariffs, and consumer strength, markets have remained resilient in 2025.
“The market continues to drive higher,” said Joe Terranova, senior managing director at Virtus Investment Partners, on CNBC. “This is one of the most resilient markets that I have ever witnessed.”
Investors are closely watching for new economic signals, including data on US new home sales due out Wednesday morning. In addition, Federal Reserve Chair Jerome Powell is scheduled to testify before the Senate Banking Committee, which could provide further insight into the central bank’s outlook.
On the earnings front, quarterly reports from companies like General Mills, Paychex, and Micron are in focus.
FedEx shares declined more than 5% in premarket trading after the company issued earnings guidance that fell short of analyst expectations. Despite posting stronger-than-expected fourth-quarter results—$6.07 adjusted earnings per share on $22.22 billion in revenue—its outlook for the current quarter raised concerns. The company projected adjusted EPS of $3.40 to $4.00, versus an expected $4.05.
Elsewhere, Kraft Heinz was upgraded to “neutral” from “sell” by Goldman Sachs. Analyst Leah Jordan cited potential shareholder value unlocks and raised the stock’s 12-month price target to $27. Shares rose modestly in response.
Wells Fargo lowered its price target on solar company Sunrun, citing uncertainty tied to a proposed budget bill from President Trump. The bank maintained an “overweight” rating but cut its price target from $10 to $8.
Tesla also made headlines, with the European Automobile Manufacturers Association reporting that the automaker’s new car sales in Europe declined nearly 28% in May—the fifth consecutive monthly drop. Nonetheless, Tesla shares were slightly higher in early trading.
The S&P 500’s swift rebound—now up over 20% since its April 8 low—has fueled optimism among analysts. Historically, such rapid rallies signal continued strength ahead.
“We think the biggest risk to our view is that we’re not bullish enough,” HSBC strategist Max Kettner wrote, citing the dual tailwinds of AI innovation and a weakening US dollar.
Tech stocks, which led the April downturn, are now leading the recovery. The XLK ETF, which tracks major tech names in the S&P 500, has hit an all-time high.
Dan Ives of Wedbush Securities noted that easing geopolitical tensions could open new tech and AI opportunities in the Middle East, particularly in countries like Saudi Arabia and the UAE.
Still, some strategists urge caution. Marci McGregor, head of portfolio strategy at Bank of America Private Bank, expects market volatility to continue. However, she remains modestly positive on US equities, citing potential earnings growth and AI-driven efficiencies.
