Stocks were set to rebound on Wednesday as investors looked past President Donald Trump’s latest tariff threats and more data that pointed to U.S. economic weakness.
Futures tracking the Dow Jones Industrial Average rose 169 points, or 0.4%. S&P 500 futures were up 0.3%, and contracts tied to the Nasdaq 100 climbed 0.2%.
All three of the blue-chip indexes finished in the red the previous session after Trump said he would soon unveil tariff rates for semiconductors and pharmaceuticals and the Institute for Supply Management’s services industry survey unexpectedly fell. The contraction has stoked fears that the economy could be headed for a period of stagflation–a toxic combination of persistent inflation and sluggish growth.
Still, investors appeared to be shrugging off those worries early Wednesday. Earnings from chip maker Advanced Micro Devices looked solid enough, and a slew of decent results from Europe were also boosting sentiment.
Moves on Wednesday “may reverse some of Tuesday’s late selloff,” Kathleen Brooks, research director at the foreign exchange brokerage XTB, said. “Decent earnings on both sides of the Atlantic [are] neutralizing some of the concerns around a slowdown in the US and the effects on the global economy from President Trump’s continuing obsession with tariffs.”
Fast-food chain McDonald’s and theme-park operator Walt Disney are among the companies set to report early Wednesday, with vacation rental company Airbnb and ride-hailing app Uber due up after the closing bell. There are no major economic releases due out.
The yield on the benchmark 10-year U.S. Treasury note was up 2 basis points to 4.24%. The dollar was flat against a weighted basket of its peers, and gold slid 0.3% to $3,425 an ounce.
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