Traders work on the floor of the New York Stock Exchange (NYSE) on July 21, 2026 in New York City.
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Stock futures fell early Wednesday as investors looked ahead to another busy day of corporate earnings, with several major technology and industrial companies set to report.
Futures tied to the Dow Jones Industrial Average dipped 24 points, or less than 0.1%. S&P 500 futures and Nasdaq-100 futures were down 0.3% and 0.7%, respectively.
Earnings take center stage again on Wednesday, with reports due from ServiceNow, International Business Machines, Tesla, Texas Instruments, Alphabet and AT&T. Investors will be watching closely for updates on AI spending, cloud demand, corporate technology budgets and the outlook for the second half of the year.
Investors remain focused on whether strong demand for AI infrastructure and software will continue to justify elevated valuations across the technology sector as earnings season accelerates.
“Q2 earnings season is ramping up, but with most hyperscalers yet to report, the market is still waiting for the definitive read on how AI investment is being monetized and translated into future capital spending,” said Julia Hermann, global market strategist at New York Life Investment Management.
The major U.S. averages snapped a three-session losing streak on Tuesday, supported by better-than-expected earnings from blue-chip companies including 3M and General Motors, which helped ease concerns about the health of corporate America. Chipmakers also fueled the rally, with the VanEck Semiconductor ETF (SMH) climbing 4% as investors rotated back into artificial intelligence-related names.
Fed rate hike bets increase as oil jumps
Investor attention is also attuned to developments in the Middle East after U.S. Central Command carried out its 11th consecutive night of strikes against Iran.
Oil prices jumped in early trading after U.S. Secretary of State Marco Rubio told the ASEAN Foreign Ministers’ meeting in the Philippines on Wednesday that Iran is “not serious about talks.”
If they’re serious, we’re serious. If they’re not, then we will do what is necessary to protect our interests and also the interests of our allies,” he said.
Rubio added Wednesday that the strait — a critical shipping route for oil and other vital commodities — remains a sticking point in bilateral talks, alleging that Iran “demands the right” to control the waterway. Allowing this to happen would set “a very dangerous precedent” for the world, he argued.
Oil extended its recent rally as escalating tensions in the Middle East raised concerns about potential supply disruptions. Shortly before 5 a.m. ET, global benchmark Brent crude futures for July delivery were 3.5% higher at $94.20, paring earlier gains. Front-month U.S. West Texas Intermediate crude futures were up 3.8% to trade at $87.56.
As of Wednesday morning, money markets were pricing in a 24.1% chance of a rate hike from the Fed this month, and a 69% chance of at least a quarter-point hike in September, according to the CME’s FedWatch tool.
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