U.S. stock futures held steady on Wednesday as investors assessed mixed corporate earnings and awaited key economic signals from the Federal Reserve. The S&P 500 and Dow Jones Industrial Average each added about 0.3% in pre-market trading, while the Nasdaq Composite rose 0.7%.
Nvidia, which is scheduled to report quarterly results after the bell, saw its shares rise more than 2% on Tuesday, ending an eight-day losing streak. Analysts project the chipmaker's revenue to nearly double year-over-year to approximately $92 billion. The Philadelphia Semiconductor Index, however, remains down more than 20% for July, reflecting broader sector weakness.
Consumer confidence in the U.S. declined to 89.4 in August from 90.2 in July, the lowest reading since January, according to the Conference Board. LPL Financial's chief economist, Jeffrey Roach, expects the economy to expand by 2.1% in the third quarter, citing solid employment conditions despite growing consumer caution.
Trade tensions between the U.S. and Canada escalated over the weekend after Washington imposed 50% tariffs on $27.6 billion of Canadian imports. Ottawa responded with counter-tariffs ranging from 15% to 50% on U.S. goods, effective September 8, targeting sectors including steel, dairy, and electronics. President Donald Trump reiterated his criticism of Canadian trade practices in a Truth Social post, alleging excessive tariffs on American farmers and delays in certifying U.S. aircraft.
Geopolitical developments added to market uncertainty. The U.S. Treasury announced new sanctions on Iran under "Operation Economic Outcast," while Iran and Oman discussed the resumption of safe navigation through the Strait of Hormuz. Oil prices fell sharply, with Brent crude dropping 5.8% to $85.31 per barrel.
Corporate earnings contributed to market volatility. DICK'S Sporting Goods shares plummeted nearly 31% after missing revenue and profit expectations and lowering full-year guidance due to weak performance in athletic footwear and apparel. Walmart reported its worst U.S. comparable sales growth in six years, reflecting broader retail headwinds.
Semiconductor stocks showed mixed performance. Samsung Electronics' shares initially dropped nearly 9% on Monday following a softer-than-expected 2026 shareholder return target but stabilized by Tuesday's close. SK Hynix shares recovered after early declines, ending the session flat.
Investors also monitored upcoming economic data, including Wednesday's July core personal consumption expenditures price index and Federal Reserve Chair Kevin Warsh's keynote address at the Jackson Hole conference on Friday.
