HG MARKETS:

U.S. stock futures rose modestly on Wednesday as investors anticipated a wave of corporate earnings and potential further rate cuts by the Federal Reserve. Wall Street’s rebound on Tuesday was driven by strong results from key firms and supportive comments from Fed Chair Powell. However, ASML’s warning of declining sales in China dampened sentiment in the semiconductor sector. While U.S. Trade Representative Greer sought to ease trade concerns, President Trump’s criticism of China’s agricultural imports reignited geopolitical tensions.

ASML reported strong third-quarter net bookings of €5.40 billion, exceeding expectations and reflecting continued AI-driven demand for its advanced lithography tools. CEO Christophe Fouquet highlighted ongoing momentum in AI-related investments, though concerns of an emerging speculative bubble persist. Despite these gains, the firm issued a cautious outlook, citing a substantial anticipated decline in sales to China, which had comprised nearly one-third of tool sales in the first nine months of 2025. This led to a reserved projection of flat or slightly increased revenues for 2026, tempering broader investor enthusiasm.

OpenAI is reportedly developing a five-year strategic plan to address over $1 trillion in projected expenditures aimed at advancing its AI capabilities, according to the Financial Times. The plan includes exploring new revenue streams, securing debt financing, and pursuing additional fundraising. Custom solutions for governments and enterprises are also in development to support these efforts. Despite generating $4.3 billion in revenue in H1 2025, OpenAI posted a $13.5 billion loss, raising investor concerns over its high capital obligations. Massive infrastructure commitments, including 26 gigawatts of capacity from major tech firms, contribute significantly to its projected costs.

The third-quarter earnings season gains momentum on Wednesday, with several major companies set to release their results. United Airlines will report after the market close, with investor focus on its outlook for travel demand through year-end. Previously, the airline warned that third-quarter earnings could be impacted by operational issues at Newark Airport, though it also anticipated a double-digit increase in business bookings amid easing geopolitical and economic uncertainty. Other key earnings due include Bank of America, Morgan Stanley, and Abbott Laboratories, marking a pivotal day for market sentiment.

With the ongoing U.S. government shutdown limiting the release of key economic data, attention has shifted to the Federal Reserve’s Beige Book, due Wednesday, which compiles anecdotal insights into the nation’s economic conditions. The lack of official data has heightened uncertainty around the Fed’s policy trajectory, particularly given the conflicting signals of a cooling labor market and persistent inflation. September’s rate cut was viewed as a response to labor market softness, but with limited new data, future decisions remain uncertain. Nevertheless, markets widely anticipate additional 25-basis-point cuts at the Fed’s October and December meetings, according to CME’s FedWatch Tool