5 Things to Know Before the Stock Market Opens on Wednesday

• The Fed is widely expected to hold rates steady at 2:00 p.m. ET, with investors scrutinizing Warsh's press conference for clues on future policy given inflation remains above target due to surging fuel prices
• SpaceX stock continued its post-IPO rally, briefly surpassing Amazon to become the world's fifth-most valuable company with a market cap near $3 trillion
• Chip stocks rebounded in premarket trading with the semiconductor ETF up 2% after tumbling 6% Tuesday, while the Dow hit its second consecutive record high

Market Summary: Wednesday Pre-Market Overview

Key Market Movements:

Stock futures point to modest gains Wednesday morning, with S&P 500 futures up 0.1%, Nasdaq futures up 0.5%, and Dow futures flat. The Dow closed at its second consecutive record high Tuesday, while the S&P 500 and Nasdaq declined due to a chip stock sell-off.

Federal Reserve Decision:

The Fed is widely expected to keep interest rates unchanged at its 2:00 PM ET announcement, marking new Chair Kevin Warsh's first meeting. Investors will scrutinize the policy statement and quarterly economic projections, with particular focus on Warsh's 2:30 PM press conference. Warsh, nominated by President Trump after Jerome Powell's term expired, faces challenges cutting rates as inflation remains elevated due to surging fuel prices from the Iran conflict. The 10-year Treasury yield holds steady at 4.45%.

Economic Data:

Retail sales data releases at 8:30 AM ET, with economists expecting a 0.5% increase in May, matching April's growth. The report will reveal consumer spending resilience amid high fuel costs.

Commodity Markets:

WTI crude oil futures rose less than 1% to $77/barrel following recent sharp declines on optimism about the Iran war ending. Gold holds at $4,345/ounce, while Bitcoin trades at $64,800.

Company Highlights:

• SpaceX continues its strong post-IPO rally, briefly surpassing Amazon as the world's fifth-most valuable company with a market cap approaching $3 trillion
• Semiconductor stocks rebound in premarket trading, with the SOXX index up 2% after Tuesday's 6% plunge. Intel, AMD, Micron, and Marvell each gained approximately 3%, while Nvidia and Broadcom posted smaller gains.