U.S. stock futures are holding steady today as investors weigh the possibility of Federal Reserve interest rate cuts later this year. Wednesday brings another wave of quarterly earnings reports, including updates from Uber Technologies and Arm Holdings. While Toyota celebrates nearly doubling its annual profit thanks to robust demand for its hybrid vehicles, it cautions about a projected 20% income drop in the current fiscal year.
1. Futures Remain Steady
As of 03:28 ET (07:28 GMT), Dow futures, S&P 500 futures, and Nasdaq 100 futures are all showing little change. Yesterday’s mixed performance on Wall Street tempered some of the recent market momentum. The speculation surrounding Federal Reserve interest rate adjustments has been fueled in part by softer-than-expected U.S. jobs data last week, prompting some investors to anticipate a rate cut as early as September.
2. Earnings Reports in Focus
Today, all eyes are on earnings reports from notable companies like Uber Technologies and Arm Holdings. Investors are particularly interested in Uber’s revenue and booking figures to assess its growth prospects, while attention will be on Arm’s royalty and license revenues. In extended hours trading, Reddit’s shares surged after it delivered optimistic revenue guidance despite widening losses.
3. Toyota’s Profits Surge
Toyota Motor Corporation, the world’s largest automaker, has reported a significant increase in its annual profit, buoyed by strong sales of its hybrid vehicles. However, the company warns of a potential income decline in the current fiscal year due to softer economic conditions in key markets.
4. U.S. Revokes Licenses for Huawei Suppliers
Reports indicate that the U.S. has revoked licenses for companies like Intel and Qualcomm to supply chips to Huawei Technologies. This move comes amid growing concerns about national security and cyber espionage allegations against Huawei.
5. Crude Prices Dip
Crude prices are on the decline today after industry data revealed an increase in U.S. crude inventories, signaling weaker demand in the world’s largest energy consumer. U.S. crude futures are down 1.1% at $77.50 per barrel, while the Brent contract has dropped 1.1% to $82.24 a barrel.
