Stock Market Today: S&P 500, Dow Futures Gain After Scott Bessent Signals Strait of Hormuz Deal With Iran

U.S. stock futures rose on Wednesday, as the Dow Jones and S&P 500 indices advanced, after the Dow and S&P 500 hit new all-time highs on Tuesday and closed higher.

“We are in talks with the Iranians,” Bessent said, while adding that there could be major relief across energy products, fertilizers, refined products and industrial gases once a deal is reached with Iran.

Meanwhile, the 10-year Treasury bond yielded 4.607%, and the two-year bond was at 4.20%. The CME Group’s FedWatch tool’s projections show markets pricing a 58.9% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.

Stocks In Focus

Advanced Micro Devices

• Benzinga’s Edge Stock Rankings indicate that AMD maintains a strong price trend in the long and medium terms, with a good quality score.

Space Exploration Technologies

• Benzinga’s Edge Stock Rankings indicate that SPCX maintains a weak price trend in the long, medium, and short terms.

SanDisk

• Benzinga’s Edge Stock Rankings indicate that SNDK maintains a weak price trend in the medium and short terms, with a good momentum score.

Eli Lilly and Co.

• Benzinga’s Edge Stock Rankings indicate that LLY maintains a strong price trend in the long and medium terms, with a good quality score.

Datadog

• Benzinga’s Edge Stock Rankings indicate that DDOG maintains a strong price trend in the long, medium, and short terms, with a strong momentum score.

Cues From Last Session

Information technology, materials and industrial stocks led gainers, while utilities, energy and consumer discretionary saw the largest losses on Tuesday.

Insights From Analysts

Analysts at Schwab Center for Financial Research said in a note on Wednesday that the S&P 500’s rebound above its 50-day moving average after briefly slipping below it last week is a constructive technical signal and may be fueling short covering that is adding momentum to the rally.

The index had traded close to its 50-day moving average for much of June and July and is now sitting farther above that level than at any point since early June, the firm said.

A tightening services sector could reignite wage pressures, putting Friday’s payrolls report in sharp focus. Kevin Gordon, head of macro research and strategy at the SCFR, said any evidence of labor market tightness could reinforce market concerns about the Federal Reserve’s inflation-fighting credibility.

Upcoming Economic Data

• On Wednesday, July’s ADP national employment report will be out by 8:15 a.m. ET, July’s U.S. services PMI will be released by 9:45 a.m., and July’s ISM services PMI data will be available at 10:00 a.m.
• Federal Reserve Governor Lisa Cook will speak at 4:05 p.m. ET. 

Commodities, Crypto, And Global Equity Markets

Crude Oil WTI futures were trading higher in the early New York session by 0.51% to hover around $76.16 per barrel.

Gold Spot US Dollar rose 2.16% to hover around $4,165.54 per ounce. The U.S. Dollar Index spot was 0.03% lower at the 99.710 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.56% higher at $64,007.77 per coin over the last 24 hours.

Asian markets closed mostly higher on Wednesday, as Japan’s Nikkei 225, South Korea’s Kospi, China’s CSI 300, Hong Kong’s Hang Seng indices surged. India’s Nifty 50 and Australia’s ASX 200 indices declined. European markets were mostly higher in early trade.

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