US pre-open: Futures higher as investors digest trade news
By Iain Gilbert
Date: Wednesday 07 May 2025
(Sharecast News) - Wall Street futures were in the green ahead of the bell on Wednesday on the back of fresh trade news.
As of 1245 BST, Dow Jones futures were up 0.54%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.58% and 0.59% firmer, respectively.
The Dow closed 389.83 points lower on Tuesday as investors digested a number of gloomy outlooks from corporations warning of the negative impact of trade tariffs on business.
News that Treasury Secretary Scott Bessent and Jamieson Greer will meet with their Chinese counterparts in Switzerland later this week gave sentiment a boost prior to the open, with market participants taking the news as a positive following Donald Trump's so-called "reciprocal" tariff announcement on 2 April.
Wednesday's other primary focus will undoubtedly be the outcome of the Federal Open Markets Committee's two-day policy meeting, set to be announced at 1900 BST and followed by a press conference at 1930 BST. The central bank was widely expected to hold interest rates steady at 4.5%, but market participants will also hope to gain some further insight into the Fed's thinking going forward at chairman Jerome Powell's post-decision presser.
Trade Nation's David Morrison said: "Investors will want to know his thoughts on tariffs, the trade war with China, the outlook for future rate cuts and also any clarity he can give around the ongoing reduction in the Fed's balance sheet. Could the Fed Chair announce an end to Quantitative Tightening?"
Elsewhere on the macro front, US mortgage applications shot up 11% in the week ended 2 May, according to the Mortgage Bankers Association of America, with applications to purchase a home and applications to refinance a mortgage both shooting up 11% month-on-month.
Still to come, March consumer credit change figures will be published at 2000 BST.
In the corporate space, Super Micro Computer shares were roughly 5% lower in pre-market trading after the group's Q3 earnings missed expectations on the Street, while Advanced Micro Devices was up nearly 4% on the back of better-than-expected Q1 earnings.
Reporting by Iain Gilbert at Sharecast.com
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