US Stock Futures Point To Higher Open As Japan Trade Deal, Earnings Optimism Buoy Sentiment — Spotlight On Alphabet, Tesla Earnings

A Japan trade deal and positive earnings expectations have lifted sentiment as the major U.S. stock futures traded higher early Wednesday. 

In a swift development following key election results in Japan, President Donald Trump announced a trade deal with the Asian nation, imposing a smaller-than-expected 15% tariff.

That said, traders are likely to exercise restraint as the broader market finished at a new high on Tuesday, ahead of key earnings from megacaps Tesla, Inc. (TSLA) and Alphabet, Inc. (GOOGL) (GOOG), and the upcoming week’s interest rate decision.

As of 1:37 a.m. ET, the Russell 2000 futures led the way with a nearly 0.60% jump. The Nasdaq 100 and S&P 500 futures gained over 0.20% each, while the Dow futures edged up. 

On Tuesday, stocks treaded water as traders reacted to corporate earnings and comments from Federal Reserve officials at a conference deliberating capital framework for large banks. 

The S&P 500 Index ended at a fresh high, although the upward momentum was not strong enough to carry it to a new intraday record. Declines by overbought IT and communication services stocks weighed down on the Nasdaq Composite Index, which snapped its six-session winning streak and ended shy of its record high.

The Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index, ended down 0,52%, while the SPDR S&P 500 ETF (SPY) edged up 0.01%. 

The SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.34%, and the iShares Russell 2000 ETF (IWM) advanced 0.83%.

Among the catalysts for Wednesday are the National Association of Realtors’ existing home sales report for June, with economists, on average, expecting a seasonally adjusted annual rate of 4 million units for the month, versus a 4.03 million rate in May.

Telcom companies AT&T (T) and T-Mobile US (TMUS), GE Vernova (GEV), toymakers Hasbro (HAS) and Mattel (MAT), Alphabet, Chipotle Mexican Grill (CMG), IBM (IBM), transportation stocks CSX (CSX) and Knight-Swift (KNX), Las Vegas Sands (LVS) and Tesla are among the companies scheduled to report on Wednesday.

Crude oil futures rose modestly but traded under $66, and the gold rally lost steam, with the yellow metal retreating early Wednesday.

The 10-year U.S. Treasury note yield steadied after declining for two straight days, while the greenback climbed against most majors, except for commodity currencies.

Asian stocks rallied, led by Japanese equities, as the regional traders digested the Japanese trade deal. 

The Nikkei 225 average was up nearly 3.50% by late afternoon trading, rising to its highest level since July 17, 2024.

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