Will Markets Hit NEW RECORD HIGHS?

U.S. stock futures remained subdued Wednesday as investors weighed easing Middle East tensions and awaited signals from Federal Reserve Chair Jerome Powell on the path for interest rates.

At a Glance

• S&P 500 hovered within 0.6% of record highs amid Israel-Iran ceasefire.
• Nasdaq 100 hit new intraday high as tech stocks surged.
• Fed Chair Powell signaled openness to future rate cuts.
• Oil prices fell sharply, easing inflation concerns.
• Treasury yields and U.S. dollar slipped on cooling geopolitical risk.

Markets Steady as Geopolitical Risks Cool

U.S. stock indexes showed little movement in early trading, with the S&P 500 holding near record levels following news of an Israel-Iran ceasefire. The Nasdaq 100 outperformed, hitting fresh intraday highs, buoyed by renewed tech-sector optimism.

A sharp drop in oil prices further supported risk appetite, with inflation fears temporarily easing as geopolitical tensions cooled. According to Business Insider, markets responded positively to signs of de-escalation, though investors remained cautious ahead of key comments from Powell.

Watch a report: Powell’s Comments Could Shift Market Outlook.

Fed Signals Possible Rate Cuts

Speaking before Congress, Powell reiterated a “wait-and-see” stance but acknowledged the Fed could move toward rate cuts if inflation remains controlled and the labor market softens. Fed futures now price in roughly 60 basis points of cuts by year-end, with a 70% probability of a 25 bp cut by September.

Boston Fed President Susan Collins echoed Powell’s view, emphasizing that any policy move will remain data-dependent. The Reuters “Morning Bid” noted that easing oil prices and lower yields have bolstered expectations for earlier Fed action.

Sector Movers and Market Trends

FedEx stock tumbled 5.5% in premarket trading after issuing weaker-than-expected earnings guidance. Tesla slid roughly 4% amid declining European sales, while Nvidia gained 2.6% on continued AI demand. Meanwhile, BlackBerry surged up to 17% following an upbeat cybersecurity revenue outlook.

Crypto sentiment also improved, with Coinbase shares climbing about 2.6% after a key analyst upgrade.

Treasury yields fell to multi-week lows, and the U.S. dollar weakened to a three-year low against the euro, as markets reacted to cooling inflation pressures and improved geopolitical sentiment.

As investors eye Powell’s upcoming comments and key inflation data, markets remain cautiously optimistic—but with risks still looming, traders will be watching closely to see if the S&P 500 can break decisively into new record territory.