Editor’s Note: This article has been updated to reflect the accurate yields for the 2-year and 10-year Treasury bonds.
U.S. stock futures dipped on Wednesday after ending lower on Tuesday. Futures of major benchmark indices were trading lower in premarket.
The S&P 500 index snapped its six-day winning streak on Tuesday, which was followed by the U.S.-China 90-day tariff truce.
Donald Trump‘s ‘One Big, Beautiful Bill‘ was the center of discussion among experts as the Congressional Budget Office released its estimates for the distributional effects of the Act.
It estimated a 4% drop in the household incomes of the lower decile of Americans by 2033 and a 2% rise in the income of the highest decile.
Meanwhile, the 10-year Treasury bond yielded 4.53% and the two-year bond was at 3.9%. The CME Group’s FedWatch tool‘s projections show markets pricing a 94.6% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.
| Futures | Change (+/-) |
| Dow Jones | -0.65% |
| S&P 500 | -0.60% |
| Nasdaq 100 | -0.61% |
| Russell 2000 | -0.86% |
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.58% to $589.40, while the QQQ declined 0.65% to $516.91, according to Benzinga Pro data.
Cues From Last Session:
On Tuesday, most S&P 500 sectors closed lower, with energy, consumer discretionary, and communication services stocks seeing the steepest declines.
In contrast, utilities and healthcare stocks moved higher, defying the broader market trend.
Meanwhile, Tesla Inc. TSLA stock edged up after CEO Elon Musk reaffirmed his five-year commitment to the company. Home Depot Inc. HD reported better-than-expected first-quarter sales but missed EPS estimates. Amer Sports Inc. AS also posted strong first-quarter results.
Economically, the U.S. Redbook Index increased 5.4% year-over-year for the week ending May 17.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0.38% | 19,142.72 |
| S&P 500 | -0.39% | 5,940.46 |
| Dow Jones | -0.27% | 42,677.24 |
| Russell 2000 | 0.054% | 2,105.58 |
Insights From Analysts:
Senior economist at WisdomTree, Jeremy Siegel, said that he was “clear-eyed” about the tariff impact.
“These tariffs aren’t good for the market. Stocks would be higher without them, but the market’s current pricing suggests it can absorb the expected hit at current rates.”
While there was criticism around the One Big, Beautiful Bill on proposed tax cuts, Siegel said, “While tariffs remain a headwind, the tax cut and a potential easing of tensions in the Middle East could propel equities closer to all-time highs.”
Meanwhile, quoting the CBO estimates, Craig Shapiro of the Bear Traps Report, said, the new Bill will “explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile.”
“Another opportunity squandered and further proof that the Republican Party continues to cater to the wealthiest Americans time and time again,” he added.
Economist Peter Schiff was also not enamoured by the Bill as he stated that the tax cuts just boost GDP at the “expense of larger budget and trade deficits and higher inflation, and long-term interest rates.”
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Upcoming Economic Data
Here’s what investors will keep an eye on Wednesday:
- Richmond Fed President Tom Barkin and Fed Governor Michelle Bowman will take part in the ‘Fed Listens’ event at 12:15 p.m. ET.
Stocks In Focus:
- Target Corp. TGT was 0.37% lower in premarket on Wednesday as analysts expect it to report quarterly earnings of $1.65 per share on revenue of $24.32 billion, before the opening bell.
- Lowe’s Companies Inc. LOW declined 0.28% as Wall Street expects it to report earnings before the opening bell. It is expected to post earnings of $2.88 per share on revenue of $20.96 billion.
- TJX Companies Inc. TJX fell 0.69% as analysts expect it to report quarterly earnings of 90 cents per share on revenue of $12.99 billion, before the opening bell.
- VF Corp. VFC was up 0.14% as Wall Street expects it to report earnings before the opening bell. It is expected to post a quarterly earnings loss of 14 cents per share on revenue of $2.17 billion.
- Palo Alto Networks Inc. PANW dropped 3.85% despite posting better-than-expected earnings for its third quarter and raising its full-year 2025 guidance on Tuesday.
- Toll Brothers Inc. TOL jumped 5.88% after posting stronger-than-expected earnings and sales results for the second quarter.
- CFSB Bancorp Inc. CFSB surged 67.89% as it announced that Hometown Financial Group will acquire the company for a total transaction value of approximately $44 million.
- Accenture PLC ACN was up 0.41% after collaborating with Dell Technologies Inc. DELL and Nvidia Corp. NVDA to accelerate enterprise AI transformation with AI refinery.
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 1.72% to hover around $63.10 per barrel.
Gold Spot US Dollar rose 0.55% to hover around $3,308.30 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.39% at the 99.7300 level.
Asian markets were mixed on Tuesday as South Korea’s Kospi and India’s S&P BSE Sensex index declined. Japan’s Nikkei 225 was flat, and Australia’s ASX 200, Hong Kong’s Hang Seng, and China’s CSI 300 indices advanced. European markets were higher in early trade.
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