December S&P 500 E-Mini futures (ESZ26) are up +0.07%, and December Nasdaq 100 E-Mini futures (NQZ26) are down -0.01% this morning, posting modest moves as investors weighed progress in U.S.-Iran diplomatic efforts.
WTI crude dropped nearly -1% on Wednesday, while Brent crude edged higher, snapping a five-day losing streak. U.S. President Donald Trump on Tuesday signaled progress in U.S. talks with Iran, even after threatening to “annihilate” the Islamic Republic.
Investors are also awaiting U.S. business activity data and comments from Federal Reserve officials.
In yesterday’s trading session, Wall Street’s major indexes ended mixed, with the Nasdaq 100 notching a new all-time high. Chip and AI infrastructure stocks advanced, with Sandisk (SNDK) climbing over +6% and Micron Technology (MU) gaining +5%. Also, Shopify (SHOP) rose over +7% after striking a partnership with Meta Platforms for its Muse personal AI agent. In addition, Vicor Corporation (VICR) jumped over +19% after the power components maker raised its Q3 revenue growth guidance, citing royalties from a new licensing agreement. On the bearish side, financial stocks slid, with Charles Schwab (SCHW) falling over -6% and Wells Fargo (WFC) dropping more than -3%.
The Richmond Fed said on Tuesday that its regional manufacturing index fell to a 7-month low of -2 in September from 4 in August. Economists had forecast the reading to drop to 2.
Investors also digested hawkish remarks from Fed officials. Boston Fed President Susan Collins said on Tuesday that she backed last week’s decision to raise interest rates, which she said would help return inflation to the 2% target. At the same time, Collins said she saw an “increased likelihood” of scenarios in which inflation stays “notably above 2%,” signaling she may favor further rate hikes. Separately, Richmond Fed President Thomas Barkin warned that temporary shocks fueling inflation this year could persist and new cost pressures could emerge, suggesting more rate hikes may be needed.
U.S. rate futures have priced in a 53.1% probability of a 25-basis-point rate hike and a 46.9% probability of no rate change at October’s monetary policy meeting.
Today, investors will focus on the preliminary U.S. purchasing managers’ surveys for September, set to be released in a couple of hours. The surveys will give investors a snapshot of the health of the world’s largest economy. Economists expect the September S&P Global manufacturing PMI to be 53.6 and the S&P Global services PMI to be 55.8, compared with the previous month’s figures of 53.9 and 56.5, respectively.
The EIA’s weekly crude oil inventories report will also be released today. Economists expect crude oil inventories to decline by 0.7 million barrels in the week ended September 18th, compared with a decrease of 0.6 million barrels in the prior week.
In addition, market participants will be anticipating speeches from Fed Governor Michael Barr and Chicago Fed President Austan Goolsbee.
On the earnings front, corporate-uniform provider Cintas (CTAS), payroll and human-resources services firm Paychex (PAYX), and Cheerios maker General Mills (GIS) are the major names slated to release their quarterly results today.
Meanwhile, Chinese President Xi Jinping is scheduled to arrive in the U.S. at Joint Base Andrews later today, where he will be greeted by U.S. President Donald Trump. Bilateral talks and a formal welcome ceremony will be held at the White House on Thursday, followed by a state dinner. Investors will be focused on the fate of the trade truce set to expire on November 10th, potential tariff reductions, and possible agreements on agriculture, energy, and AI.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.97%, down -0.10%.
The Euro Stoxx 50 Index is down -0.08% this morning, struggling for direction as a rebound in Brent crude kept investors cautious. Telecom stocks underperformed on Wednesday. Also, technology stocks reversed earlier gains and edged lower. At the same time, bank and defense stocks advanced, limiting the broader market’s losses. A preliminary S&P Global PMI survey released on Wednesday showed that Eurozone business activity expanded at its fastest pace in more than three years in September as the services sector unexpectedly improved. The survey indicated that the region’s economy remains resilient despite higher commodity prices and accelerating inflation. Eurozone government bond yields rose on Wednesday as the strong PMI data reinforced the case for the European Central Bank to raise interest rates again this year. Meanwhile, the OECD, in a new quarterly report, upgraded its 2026 growth forecast for the euro area by 0.2 percentage points to 1%. Investor focus is now shifting to Thursday’s meeting between U.S. President Donald Trump and Chinese leader Xi Jinping. In corporate news, Arcadis (ARCAD.NA) slid over -5% after WSP Global withdrew its takeover bid for the company.
Eurozone’s Composite PMI (preliminary), Eurozone’s Manufacturing PMI (preliminary), and Eurozone’s Services PMI (preliminary) were released today.
Eurozone’s September Composite PMI stood at 53.1, stronger than expectations of 51.7.
Eurozone’s September Manufacturing PMI came in at 52.7, stronger than expectations of 52.6.
Eurozone’s September Services PMI arrived at 53.0, stronger than expectations of 51.4.
China’s Shanghai Composite Index (SHCOMP) closed down -0.39%, while Japan’s financial markets were closed for a national holiday.
China’s Shanghai Composite Index closed lower today, weighed down by weakness in AI-related and new-energy vehicle stocks, while investors awaited the meeting between U.S. President Donald Trump and Chinese leader Xi Jinping. AI-related stocks slid on Wednesday as sentiment toward the sector soured after The Information reported that Chinese regulators launched a probe into startups DeepSeek and Moonshot AI over data security concerns. Also, new energy vehicle stocks declined after the European Central Bank said on Tuesday that China’s industrial transformation is squeezing European firms out of global markets, particularly in machinery and transport equipment, with German companies among the hardest hit. The development renewed concerns that Europe could expand tariffs to curb Chinese vehicle imports, a step some auto executives and politicians have advocated. Limiting losses, property stocks climbed after Reuters reported that Chinese regulators asked some banks not to designate overdue loans to China Vanke as non-performing and to extend repayment deadlines for the state-backed developer. Meanwhile, Fitch Ratings on Tuesday cut its 2026 growth forecast for China to 4.5% from 4.6%, citing declining fixed-asset investment and sluggish consumer spending as drags on domestic demand. Elsewhere, chip foundry CanSemi Technology launched an initial public offering on the Shenzhen Stock Exchange’s ChiNext board, aiming to raise about 6.16 billion yuan ($919 million). Attention now turns to the Trump-Xi summit, with the fate of the trade truce set to expire on November 10th, potential tariff reductions, and possible agreements on agriculture, energy, and AI all in focus.
Japan’s Nikkei 225 Stock Index was closed today for the Autumnal Equinox holiday. Japanese financial markets will reopen on Thursday.
Pre-Market U.S. Stock Movers
Worthington Enterprises (WOR) jumped over +17% in pre-market trading after the building products maker reported stronger-than-expected FQ1 results.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - September 23rd
Cintas (CTAS), Paychex (PAYX), General Mills (GIS), H.B. Fuller Company (FUL), Cracker Barrel Old Country Store (CBRL), and Stitch Fix (SFIX).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.