U.S. stock futures declined on Wednesday, as the Dow Jones, Nasdaq 100, and S&P 500 indices fell, following Tuesday’s lower close.
President Donald Trump, while speaking in Ankara ahead of a NATO summit in the Turkish capital, said that the memorandum of understanding signed with Iran to end the conflict was “over,” according to Reuters.
This followed as American military actions targeting Iran late Tuesday reignited anxieties in the Middle East. CENTCOM said that “U.S. Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway.”
Investors are also awaiting the minutes of the Federal Open Market Committee meeting with Kevin Warsh as the new Chairman, which will be released later today.
Meanwhile, the 10-year Treasury bond yielded 4.56%, and the two-year bond was at 4.20%. The CME Group’s FedWatch tool’s projections show markets pricing a 72.7% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
| Index | Performance (+/-) |
| Dow Jones | -1.17% |
| S&P 500 | -0.96% |
| Nasdaq 100 | -1.35% |
| Russell 2000 | -1.47% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Wednesday. The SPY was down 0.82% at $741.59, while the QQQ declined by 1.04% to $702.06.
Stocks In Focus
FuelCell Energy
- FuelCell Energy Inc. (NASDAQ:FCEL) tumbled 15.91% in premarket on Wednesday after it announced the launch of a $200 million offering following Tuesday’s closing bell.
- Benzinga’s Edge Stock Rankings indicate that FCEL maintains a strong price trend in the medium, short, and long terms.
Saratoga Investment
- Saratoga Investment Corp. (NYSE:SAR) declined by 4.59% after reporting downbeat earnings for its first quarter, after the closing bell on Tuesday.
- Benzinga’s Edge Stock Rankings indicate that SAR maintains a weak price trend in the long, short, and medium terms, with a poor quality score.
Edible Garden
- Edible Garden AG Inc. (NASDAQ:EDBL) surged 48.23% after a Securities and Exchange Commission filing showed New York City-based proprietary trading and quantitative investment firm HRT Financial LP reported purchases of Edible Garden common stock on Tuesday.
- Benzinga’s Edge Stock Rankings indicate that EDBL maintains a weak price trend in the long, short, and medium terms.
Exxon Mobil
- Exxon Mobil Corp. (NYSE:XOM) surged 3.35% higher as it hinted on Tuesday that its second-quarter earnings could see a boost of about $5 billion compared to the previous quarter, as oil prices spiked during the U.S.-Iran war.
- Benzinga’s Edge Stock Rankings indicate that XOM maintains a weak price trend in the medium and short terms, but a strong trend in the long term, with a good growth score.
Levi Strauss
- Levi Strauss & Co. (NYSE:LEVI) was 2.60% lower as analysts expect it to report earnings of 24 cents per share on revenue of $1.52 billion, after the closing bell.
- Benzinga’s Edge Stock Rankings indicate that LEVI maintains a strong price trend in the short, long, and medium terms, with a solid value score.
Cues From Last Session
Most sectors on the S&P 500 closed on a positive note, led by health care, real estate and energy, though information technology and industrials bucked that trend to push major indexes down.
| Index | Performance (+/-) | Value |
| Dow Jones | -0.25% | 52,925.15 |
| S&P 500 | -0.45% | 7,503.85 |
| Nasdaq Composite | -1.16% | 25,818.69 |
| Russell 2000 | -0.90% | 2,982.49 |
Insights From Analysts
In its Midyear Outlook 2026, LPL Financial expects modest gains from the U.S. stock market and a moderating but positive economic growth environment.
LPL Research maintains a moderate equity overweight, driven by corporate earnings strength linked to artificial intelligence. Chief Investment Officer Marc Zabicki notes that “strength in earnings is a key reason we have added to our 2026 return expectations for equities,” though he cautions that “midterm election years make for a bumpy investment ride.”
LPL highlights that the bull market should continue, supported by the ongoing AI execution. On the economic front, LPL anticipates GDP growth to stay under 2% in the latter half of the year, though a recession is not in its baseline forecast.
Business spending on AI infrastructure and equipment is projected to counterbalance softer segments like housing. LPL’s Chief Economist, Jeffrey Roach, indicates that “strong business investment—anchored by AI—will help offset weakness in housing.”
Furthermore, inflation is expected to gradually ease to around 2.9% by year-end, provided that geopolitical friction in the Middle East and energy supply channels settle down.
Upcoming Economic Data
Here’s what investors will be keeping an eye on Wednesday.
- May’s Monthly Wholesale Trade data will be released by 10:00 a.m. ET.
- Minutes of the Federal Open Market Committee meeting and economic forecast will be released by 2:00 p.m., and May’s Consumer Credit data will be out by 3:00 p.m. ET.
- Bank of England Deputy Governor Sarah Breeden, FRB New York President John Williams, and FRB Dallas President Lorie Logan will speak at The Future of Market Liquidity and Functioning Workshop at 8:00 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 6.08% to hover around $74.73 per barrel.
Gold Spot US Dollar fell 0.84% to hover around $4,071.07 per ounce. The U.S. Dollar Index spot was 0.05% higher at the 101.0780 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.76% higher at $61,928.15 per coin over the last 24 hours.
Asian markets closed mostly lower on Wednesday. India’s Nifty 50 index, Australia’s ASX 200, South Korea’s Kospi, Japan’s Nikkei 225, China’s CSI 300, and Hong Kong’s Hang Seng indices fell. European markets were lower in early trade.
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