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US stock futures coasted higher on Wednesday as investors assessed prospects for planned US-China trade talks and waited for the Federal Reserve’s latest interest-rate decision to land.
Dow Jones Industrial Average futures (YM=F) climbed 0.6%, while S&P 500 futures (ES=F) moved up 0.5%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also rose 0.5%, on the heels of a second-straight losing day for the major US gauges.
Markets cautiously welcomed news on Tuesday that top US and Chinese officials will meet this weekend for the first major trade talks between the two since President Trump hiked tariffs on Chinese imports to 145% in April.
CBOT – Delayed Quote USD
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Faith in the idea that the US and China would eventually get round the table to seal an agreement has helped keep stocks aloft in recent weeks. But signs are that the Geneva meeting won’t bring a big trade deal.
“We’ve got to deescalate before we move forward,” Treasury Secretary Scott Bessent said in an interview on Fox News.
Read more: The latest on Trump’s tariffs
Striking the same note, Trump on Tuesday downplayed the idea that countries could negotiate better tariffs. Speaking at a meeting with Canadian Prime Minister Mark Carney, he laid out a “take it or leave it” choice for US trading partners.
Investors are now getting ready for the Fed’s policy decision due at 2 p.m. ET. Traders are pricing in about 96% odds that the central bank will leave rates unchanged, according the CME’s FedWatch tool. The focus will be on what Chair Jerome Powell has to say about the economy and the future path of rates as the impact of Trump’s historic tariff hikes feeds through.
On the earnings front, Disney (DIS) lifted its profit outlook after delivering an earnings beat driven by a rebound in its US parks business and strong performance in its streaming unit. Novo Nordisk (NVO, NOVO-B.CO) cut its 2025 sales and profit forecasts, but its shares rose on hopes a copycat ban will help sales of its Wegovy weight-loss drug.
LIVE 8 updates
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Super Micro stock tumbles as AI server maker lowers 2025 revenue outlook on tariffs, macroeconomic uncertainty
Super Micro Computer (SMCI) stock fell nearly 6% in premarket trading on Wednesday after the company lowered its full-year revenue outlook, citing economic uncertainty amid President Trump’s trade war and fierce competition from other AI server makers.
Super Micro said on Tuesday that it expects its full-year revenue for 2025 to fall between $21.8 billion and $22.6 billion, down from its prior guidance of $23.5 billion and $25 billion.
CEO Charles Liang told analysts in a call following the company’s third quarter earnings results that tariffs and macroeconomic uncertainty “concern” some customers and make it difficult to forecast the adoption of its technology.
Super Micro’s servers contain Nvidia’s (NVDA) AI chips and are used in data centers to power artificial intelligence.
As of Tuesday’s close, Super Micro shares were down nearly 39% in 2025. The stock has plunged as investors weigh the company’s AI-fueled growth against questionable accounting practices, growing competition, and macroeconomic uncertainties.
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Disney pops after earnings beat, boost to profit forecast
Disney’s (DIS) shares climbed over 6% early on Wednesday as investors cheered a quarterly earnings beat and a boost to its full-year profit forecast.
Yahoo Finance’s Alexandra Canal reports:
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Uber stock falls as Q1 revenue miss clouds upbeat forecasts
Uber (UBER) stock fell 3% in premarket trading on Wednesday after the company reported revenue rose 14% to $11.53 billion in the first quarter, below Wall Street’s estimates.
However, Uber sees resilient demand for ride-hailing and food delivery in the current quarter and forecast higher gross bookings.
From Reuters:
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All eyes on Powell as Fed grapples with Trump tariff dilemma
Yahoo Finance’s Jennifer Schonberger reports:
The Federal Reserve is widely expected to hold interest rates steady at the conclusion of its policy meeting Wednesday, but the path forward is anything but certain for Jerome Powell.
Investors will be listening closely to the central bank chairman at a 2:30 p.m. ET press conference for any hints on future monetary policy actions after President Trump spent the last few weeks repeatedly calling for the Fed to lower rates while also lobbing insults at Powell.
Trump in recent weeks referred to Powell as a “major loser,” “Mr. Too Late,” and a “total stiff” in a series of social media posts. He also said that Powell’s “termination can’t come fast enough” before later clarifying that he had no intention of removing Powell before the end of his term in May 2026.
Powell and his colleagues expect to be grappling in the months to come with a vexing dilemma. They likely will need to decide which side of their dual mandate to emphasize — price stability or maximum employment — as Trump’s tariffs potentially push inflation higher and possibly act as a drag on economic growth.
Powell last month made it clear he would wait for more clarity before deciding. Some Fed watchers expect him to do the same today.
Read more here on what Wall Street expects in the Fed’s policy decision.
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Novo Nordisk stock rises on hopes for Wegovy recovery
Novo Nordisk’s (NVO, NOVO-B.CO) shares are popping 7% in premarket despite the Danish drugmaker’s cut to its sales forecasts on Wednesday.
The maker of leading weight-loss drug Wegovy said it expects 2025 sales growth of between 13% and 21%, compared with its prior range of 16% to 24%.
But investors are jumping in after Novo’s management flagged an expected boost from a ban on Wegovy copycats in the US, its biggest market.
Reuters reports:
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Asian markets rise as US-China meeting builds hope, China cuts interest rates
Major stock indexes across Asia saw gains following the announcement that top officials from the US and China will meet in Switzerland this weekend to open tariff negotiations.
Japan’s benchmark Nikkei 225 (^N225) rose 0.1% while South Korea’s Kospi gained 0.4%. The Australian S&P/ASX 200 (^AXJO) advanced 0.5%
In addition to the opening up of trade talks, China has announced a series of financial measures designed to reduce the impact of US tariffs upon the export-dependent economy.
Beijing’s central bank has released plans to lower key interest rates and reduce requirements for lending from the reserve bank. An additional ‘tactical’ stimulus measure has boosted markets across the region.
The CSI 300 climbed 0.5% as Hong Kong’s Hang Sang Index (^HSI) jumped 0.5%.
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Oil prices rise for a second day bolstered by US-China trade optimism
Oil has continued a two-day streak of gains after US and Chinese officials agreed to a meeting later this week. The potential end of the trade stalemate between the two economic giants pushing the commodity upwards.
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WeightWatchers files for bankruptcy
WeightWatchers has announced that the US branch of the company is filing for Chapter 11 bankruptcy. Currently, parent company WeightWatchers International Inc. (WW) is sitting in $1.15 billion in debt.
Associated Press Finance reports
