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US stocks traded steady on Wednesday, as the S&P 500 kept a bid for record highs in play amid revived hopes for interest-rate cuts and the US-brokered ceasefire between Iran and Israel.
The tech-heavy Nasdaq Composite (^IXIC) led the gains, rising about 0.6%, while the S&P 500 (^GSPC) added more than 0.2%. The Dow Jones Industrial Average (^DJI) was jut above the flat line.
Market spirits got a boost from the Jerome Powell's comments to Congress on Tuesday, as the Federal Reserve chair said policymakers could act "sooner rather than later" on rate cuts. Investors are now looking to his further testimony on Wednesday to test bumped-up bets on policy easing.
His comments will lay the ground for the release of the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report, due on Friday. Economists expect annual "core" PCE — which strips out volatile food and energy costs — to have ticked up in May, compared with April. But scrutiny will also fall on any signs that Trump's tariffs pushed prices higher.
Investors are also keeping a close eye on the US-brokered Middle East truce, which appears to be holding. There have been no reported strikes between Israel and Iran since President Trump lambasted both for breaching an agreement to pause hostilities to give room for diplomacy.
Oil prices edged higher on Wednesday as tensions cooled, with Brent futures (BZ=F) bouncing back from the biggest two-day drop since 2022. The international crude benchmark pared earlier 1% to trade above $66 a barrel, while US benchmark WTI futures (CL=F) changed hands below $65.
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Reddit stock extends gains after 40% monthly climb
Reddit stock (RDDT) jumped 5% premarket Wednesday after gaining roughly 5% the previous day.
Shares of the social media platform have seen a massive upswing since early June. The stock is up 40% for the month through Tuesday's trading session, and Wednesday's rise would add to that climb.
Part of that upswing came as the company launched new AI tools at the Cannes Lions festival and after a recent analysis showed that Reddit is the second-most-cited website in Google (GOOG, GOOGL) AI overviews.
Despite Reddit stock's climb this week, shares are still down nearly 14% for the year. The social media stock has suffered as changes to Google's Search algorithm have spurred ongoing concerns among investors over its user traffic.
Citing an industry contact, RBC Capital Markets analyst Brad Erickson said that "spend on Reddit is expected to grow as brands recognize the importance of maintaining a presence on the platform," especially as AI models impact advertisers by reducing Search traffic to websites.
Erickson, who maintained his Sector Perform rating on the stock, also noted that Reddit is cracking down on multiple users using the same account, which could be a "tailwind" for traffic.
Deutsche Bank analyst Benjamin Black said in a note to clients on June 18 that Reddit has "a viable strategy to reduce the current top-of-funnel user volatility," as "there appears to be a renewed push to diversify user acquisition channels to platforms beyond Google." Black reiterated his Buy rating on the stock.
Nvidia stock looks to extend gains, notch record high in remarkable 2025 turnaround
Nvidia (NVDA) stock rose nearly 1% premarket Wednesday as shares eyed their record closing price of $149.43 in what would be a remarkable turnaround in the first half of the year.
Shares had jumped 2.6% Tuesday and are up nearly 13% over the past month.
The AI chipmaker’s stock has seen a significant upswing following its first quarter earnings in late May, which featured revenue that beat Wall Street’s expectations and showed the company continuing to thrive despite a new export ban on sales of its chips to China, one of its largest markets.
BlackBerry stock jumps on robust cybersecurity demand, raised outlook
US-listed shares of BlackBerry (BB) spiked 10% in premarket trading on Wednesday after the cybersecurity firm posted better-than-expected revenue in its fiscal first quarter and raised its revenue outlook.
The Canadian company sees its fiscal year 2026 revenue in a range of $508 million to $538 million, up from its earlier outlook of $504 million to $534 million. It reiterated its outlook for adjusted earnings per share of $0.08 to $0.10.
BlackBerry reported a net income of $1.9 million for the quarter, returning it to GAAP profitability for the first time since its 2022 fiscal year.
Reuters reports:
General Mills stock slips on soft annual profit forecast
General Mills (GIS) is the latest major food company to signal weakness in snacking and consumer packaged goods.
The Pillsbury owner's full-year profit forecast was weaker than expected as consumers pulled back on buying snacks and refrigerated baked goods last quarter.
Net sales in North America declined 10%, though sales in its pet segment rose 12%, Reuters reported. General Mills expects its adjusted profit to be down 10% to 15% for the full year.
My colleague Brooke DiPalma reported that consumers have become choosier about spending on snacks — a trend that has only gotten worse as the year goes on. Shoppers have been buying less, searching for better deals, making fewer impulse purchases, and trading down to private label brands more often as tariff uncertainty and inflation shape spending patterns.
General Mills' stock fell over 3% following the release of its fiscal fourth quarter results.
Traders ramp up bets that the 10-year Treasury yield will dive
Options positions show traders are boosting bets that the benchmark US bond yield will sink to its lowest level since April, per Bloomberg.
They're piling in as Federal Reserve officials hint at openness to interest-rate cuts and Middle East tensions fuel uncertainty.
Bloomberg reports:
QuantumScape stock rockets higher after achieving battery manufacturing milestone
Shares of QuantumScape (QS) soared 35% premarket on Wednesday after the company announced a breakthrough in its process for manufacturing solid-state batteries for electric vehicles and other uses.
In a release, QuantumScape said its Cobra process is designed to make production faster and more energy-efficient while requiring a smaller equipment footprint.
The company is one of several companies racing to commercialize the production of solid-state lithium-metal batteries that have improved energy density, charge times, and safety. Volkswagen (VWAGY) was an early investor in the startup, and QuantumScape is reported to have partnerships with other automakers as well.
"By significantly improving throughput and shrinking the equipment footprint, Cobra gives us a powerful path forward for commercializing our next-generation battery technology," QuantumScape CEO Dr. Siva Sivaram said in the release.
Wall Street bull calls for another 10% rally in the S&P 500
The S&P 500 (^GSPC) is back within one percentage point of an all-time high. One of Wall Street's notorious bulls believes the benchmark index has plenty further to run this year.
Yahoo Finance's Josh Schafer reports:
Tesla's new EV sales fall in Europe for 5th month in a row
Tesla's (TSLA) Robotaxi launch may have investors buzzing, but its sales slump continues to roll on.
In May, sales of new Tesla models in Europe fell for the fifth month in a row, down 28% year-on-year. Meanwhile, the regional total for EV sales overall jumped 27%.
Shares of the Elon Musk-led EV maker were little changed, as stocks more broadly stalled.
Reuters reports:
Good morning. Here's what's happening today.
Trending tickers: Robinhood, FedEx and Coinbase
Here are some top stocks trending on Yahoo Finance in premarket trading:
Robinhood (HOOD) stock rose 3% before the bell on Wednesday after ARK Innovatoon ETF founder Cathie Wood sold Circle (CRCL) holdings and purchased Robinhood.
FedEx (FDX) stock fell 5% after signaling caution for the year and forecasting a weaker quarterly profit.
Coinbase (COIN) was up over 1% in premarket trading Wednesday after ARK Innovation ETF’s Cathie Wood sold off her Circle (CRCL) stake the day before and shifted funds into the trading app.
The right premarket move on FedEx
FedEx (FDX) stock is getting hit premarket after the logistics giant said it expects adjusted first quarter earnings in a range of $3.40 to $4.00 per share. Wall Street had been hoping for $4.03 apiece.
For the first time in 13 years, the company didn't provide a full-year outlook. Red flag.
The earnings call was also littered with other red flags, one being China-to-US volumes have fallen off a cliff due to the trade war. The tone of the call didn't suggest this trend has improved at all.
"We recognize that FedEx is effectively a levered option on global trade dynamics, which remain uncertain and volatile," JP Morgan analyst Brian Ossenbeck said in a note.
The premarket move feels right. Look for pressure on rival UPS (UPS) and others in the supply chain logistics space.
Tune in here for more on the FedEx results on Opening Bid live at 9:30 a.m. ET.
Asia-Pacific markets mixed while investors monitor Middle East ceasefire
Asia-Pacific equities were mixed overnight Tuesda as investors assessed geopolitical developments and fresh signals from the US Federal Reserve.
Market sentiment was cautiously optimistic following news of a ceasefire between Israel and Iran, reportedly brokered by US President Donald Trump. The agreement has sparked hopes for de-escalation in the region, though investors remain skeptical on the concept of lasting peace.
In Australia, the S&P/ASX 200 (^AXJO) pushed up 0.1% alongside a broader cooling of monthly CPI following the Reserve Bank cutting interest rates.
South Korea's Kospi (^KS11) held steady, while the tech-heavy Kosdaq (^KQ11) slipped 0.4%.
Japan’s Nikkei 225 (^N225) inched up 0.3%.
Hong Kong's Hang Seng Index (^HSI) outperformed much of the region, gaining 0.7%, while China’s CSI 300 (000300.SS) index pushed up 0.5%.
Traders across the region are also parsing commentary from the Federal Reserve, as markets look for clues on the trajectory of U.S. interest rates amid persistent inflation concerns.
Oil prices rise with Israel-Iran ceasefire in view
Oil prices rebounded after two days of falls as the tense ceasefire between Israel and Iran was eyed by investors worldwide.
Reuters reports:
