US equity futures edged higher on Wednesday after the S&P 500 pushed through the 7,000 milestone for the first time, as traders positioned for a Federal Reserve (Fed) rate decision and a heavy slate of megacap earnings.
Markets also tracked a rebound in the US dollar after its biggest drop since April, while investors weighed corporate headlines, including Amazon’s plan to cut about 16,000 jobs.
The S&P 500 rose 0.3% to a record 7,002.28 on Wednesday, breaking above the 7,000 level as technology stocks led early gains. The index later eased from session highs, with the benchmark slightly changed by late morning in New York.
Investors focused on a Fed decision expected to keep interest rates unchanged, despite public pressure from President Donald Trump for cuts. Traders also prepared for Chair Jerome Powell’s comments later in the day.
Market participants described the move above 7,000 as a psychological marker rather than a major technical shift. Still, the level came after the index traded around 6,900 for weeks.
The broader tone remained mixed across major benchmarks. The NASDAQ 100 rose 0.4%, while the Dow Jones Industrial Average remained flat. The Russell 2000 Index fell 0.3%, and the MSCI World Index dipped 0.1%.
Microsoft, Meta Platforms, and Tesla are expected to report quarterly results in what investors described as the busiest day in market capitalization for earnings. Apple is scheduled to report after Thursday’s close.
Traders have looked to these results for evidence that artificial intelligence (AI) spending translates into clearer revenue and profit momentum. Investors also want updated guidance on capital expenditures, which have reached the hundreds of billions across key names tied to AI infrastructure.
Earlier optimism around AI demand received a boost from strong results at ASML Holding, although the stock later erased an initial surge. The earnings cycle has also highlighted how sensitive markets remain to guidance, after Amphenol fell following underwhelming outlook comments.
The session featured another notable corporate headline from Amazon, which said it will cut about 16,000 corporate roles as part of an organizational restructuring. The move added to a growing list of large companies targeting management layers.
Alongside big tech, investors monitored a wide set of company updates. Those included stronger guidance from Texas Instruments, upbeat signals from Starbucks on its turnaround plan, and profit pressure in parts of the health insurance sector.
Currency markets turned more defensive as the Bloomberg Dollar Spot Index rose 0.5%. The euro fell 0.9% to $1.1936, while the British pound slipped 0.6% to $1.3761.
The Japanese yen weakened 0.9% to 153.56 per dollar after comments that the US had not intervened to strengthen the yen and that officials still supported a ‘strong-dollar policy.’
Rates markets held steady ahead of the Fed. The 10-year US Treasury yield stayed near 4.25%, while the 2-year yield held at 3.58% and the 30-year yield hovered at 4.86%.
In Europe, Germany’s 10-year yield fell two basis points to 2.86%, while Britain’s 10-year yield rose one basis point to 4.54%. European equities lagged, with the Stoxx Europe 600 down 0.7%.
Commodities moved sharply. Spot gold jumped 1.7% to $5,269.93 an ounce, while West Texas Intermediate (WTI) crude rose 0.9% to $62.94 a barrel. In crypto markets, Bitcoin rose 0.4% to $89,350.89, while Ether slipped 0.2% to $3,005.9.
Texas Instruments Inc. issued a stronger-than-expected first-quarter forecast, signaling a rebound in demand tied to industrial equipment and vehicles.
ASML Holding NV reported fourth-quarter orders that exceeded analyst expectations and said it will cut jobs to improve efficiency.
SK Hynix Inc. posted its strongest quarterly results on record, reflecting sustained demand linked to artificial intelligence-driven memory spending.
AT&T Inc. reported fourth-quarter profit and revenue that beat estimates, supported by customers taking more than one connectivity service.
Delta Air Lines Inc. expanded its widebody aircraft commitments by agreeing to buy 31 Airbus SE jets, reinforcing its optimism on international travel.
Eli Lilly & Co. agreed to a deal valued at more than $1.1 billion with Germany’s Seamless Therapeutics GmbH to develop gene therapies aimed at hearing loss.
Brinker International Inc., owner of Chili’s, raised its full-year profit outlook and said it expects demand to remain strong.
Deutsche Bank AG was raided by German authorities as part of a money-laundering probe tied to past dealings involving firms linked to Roman Abramovich, according to people familiar with the matter.
Looking ahead, traders will parse the Fed statement and Powell’s press conference for signals on the 2026 rate path. Markets also face more catalysts this week, including US jobless claims, durable goods orders, and the US trade balance on Thursday, followed by producer prices on Friday.
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