United States stock futures were little changed on Tuesday night (Wednesday AEST) as investors turned their focus to key earnings reports and awaited minutes from the Federal Reserve’s latest meeting.
By 9:20 am AEST (11:20 pm GMT), futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all traded within a narrow range of 0.1%.
In extended deals, identity management software firm Okta tanked 12.2% in after-hours trading. Although the company beat fiscal first-quarter estimates on both revenue and profit, it maintained a cautious outlook amid broader macroeconomic uncertainty.
Overnight, Wall Street experienced a rally as investors returned from the long weekend. The Dow surged 1.8%, the S&P 500 gained 2%, and the Nasdaq Composite led the day’s performance, rising 2.5%.
Market sentiment was lifted earlier this week when President Donald Trump announced a delay in the planned 50% tariff on European Union imports, now set to begin on 9 July. The move eased investor concerns over escalating trade tensions.
Analysts at ANZ commented in a note to clients: “Our assessment is that the blunt tariff approach adopted by Trump and trade advisor Peter Navarro is being tempered by a more pragmatic, diplomatic approach from US trade representative Jamieson Greer.
"From the recent experience with China, we think that trade diplomacy will allow for a U.S.-EU arrangement that avoids both the 20% reciprocal and mooted 50% extreme tariff. A de-escalation in tariff tensions is good for growth.”
Investor attention is now squarely on NVIDIA, which is scheduled to report earnings after the market closes on Wednesday. The chipmaker, a leader in AI and graphics processing units, is expected to provide key insights on how U.S.-China trade restrictions are impacting demand. Despite geopolitical headwinds, NVIDIA has maintained that demand for its AI-focused chips remains robust.
Retail earnings will also take centre stage on Wednesday morning, with Macy’s, Dick’s Sporting Goods, and Abercrombie & Fitch all set to report before the opening bell.
