U.S. stock futures advanced strongly on Wednesday, driven by renewed optimism over global trade developments and a fresh wave of investor confidence. The momentum follows back-to-back record closes for the S&P 500, as markets react favorably to multiple geopolitical and economic signals.
Pre-market Highlights:
S&P 500 futures: +0.4%
Nasdaq 100 futures: +0.2%
Dow Jones futures: +200+ points
The rally was fueled by the announcement of a new trade agreement between the U.S. and Japan, in which President Donald Trump confirmed that tariffs on Japanese exports would be reduced from 25% to 15%. As part of the deal, Japan will invest $550 billion in the U.S. and further open its domestic markets to key American products, including agriculture and industrial goods.
In addition to the Japan agreement, the U.S. also announced a new trade pact with the Philippines, and speculation is growing that a deal with the European Union may be finalized in the coming weeks.
Earnings Season in Focus:
Alphabet (Google) and Tesla are set to release earnings after the opening bell; both stocks were relatively flat in premarket trading.
T-Mobile and IBM will report later today.
Texas Instruments plunged 10% premarket after issuing a weaker-than-expected earnings outlook.
AT&T shares slipped 3.6%, despite beating analyst expectations on earnings.
The combination of trade optimism and resilient corporate earnings is reinforcing bullish sentiment on Wall Street, even as investors remain cautious about inflation pressures, global uncertainty, and policy signals from the Federal Reserve.