U.S. stock futures were pointing higher early Wednesday after the S&P 500 posted a record high close. Investors are still shrugging off worries that keep cropping up, such as concern that tariffs will scupper growth or that defense spending will be gutted.
Minutes from the Federal Reserve’s most recent policy meeting, more details on President Donald Trump’s tariff plans, and the impact of talks with Russia on energy prices could all affect markets today.
Trump said late Tuesday that he is considering additional 25% tariffs on automobiles, semiconductors, and pharmaceuticals. While that would certainly create winners and losers in those industries, the plans are nevertheless much narrower than the across-the-board measures the president floated when he took office.
That’s left the impression that the taxes on imports won’t be as severe as they could be. Trump has already delayed levies on all imports from Canada and Mexico, and said his administration will study reciprocal tariffs on goods from countries that tax U.S. imports more than the U.S. taxes products from them.
Separately, a meeting with Russian officials about ending the war in Ukraine ended with an agreement to set up teams to study a solution, but without definite plans for Trump and Russian leader Vladimir Putin to meet in person. This—along with a drone attack at an oil facility in southern Russia—pushed crude prices slightly higher, which helped energy stocks.
Futures for the Dow Jones Industrial Average added 19 points, or less than 0.1%, before the market opened Wednesday. Contracts tied to the S&P 500 rose 0.1%, while those tied to the technology-heavy Nasdaq 100 also increased 0.1%. All three finished slightly higher on Tuesday after a late afternoon rally.
Bond yields are also tacking higher, perhaps because of concern that inflation will remain sticky or that the Fed will keep rates higher for longer than previously thought. The 10-year Treasury yield was at 4.564%, up from about 4.45% on Friday. The two-year yield was at 4.312%.
