U.S. stock futures were higher on Wednesday, with the Dow Jones, Nasdaq 100, and S&P 500 indices rising following Tuesday's higher close. The gains come as President Donald Trump stated that U.S. strikes in Iran would continue into the next week, warning of "very hard" hits as tensions in the Strait of Hormuz escalate. He declared that oil is flowing like never before due to American military operations keeping the shipping lane open.

Investors await the June producer price index data scheduled for release before the market opens. The 10-year Treasury bond yielded 4.60%, and the two-year bond was at 4.20%. The CME Group’s FedWatch tool projections show markets pricing an 85.6% likelihood of the Federal Reserve leaving current interest rates unchanged during July’s meeting.

The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ) were higher in premarket trading. The SPY was up 0.25% at $753.68, while the QQQ advanced by 0.50% to $723.30.

Stocks In Focus

Pentair

Pentair PLC (NYSE: PNR) plunged 16.93% in premarket trading after it slashed its guidance for FY2026. The company announced the resignation of Nicholas J. Brazis as CFO, effective July 10, and named Robert P. Fishman as interim CFO, effective July 14.

ASML Holding

ASML Holding NV (NASDAQ: ASML) rose 3.40% after posting better-than-expected earnings and sales results for the second quarter.

International Business Machines

International Business Machines Corp. (NYSE: IBM) rose 1.19% after declining over 25% on Tuesday. The company warned that clients paused software and mainframe spending amid "rapidly evolving, industry-wide cybersecurity concerns." It pre-announced second quarter revenue of about $17.2 billion, up roughly 1% year over year but below Street estimates near $17.86 billion.

Aehr Test Systems

Aehr Test Systems (NASDAQ: AEHR) surged 29.15% after the company posted fourth-quarter results after Tuesday’s closing bell, beating estimates on the top and bottom lines.

Intel

Intel Corp. (NASDAQ: INTC) rose 3.06% as it announced a €5 billion, or ~$5.7120 billion, investment to expand its Leixlip campus in Ireland. The move boosts capacity for its Intel 3 advanced process technology to meet surging demand for AI and server processors.

Cues From Last Session

Energy, information technology, and communication services stocks recorded the biggest gains on Tuesday. Most S&P 500 sectors ended positively, though health care and consumer staples stocks bucked the trend to close lower.

Insights From Analysts

Wharton School Professor Emeritus Jeremy Siegel remains optimistic about the U.S. stock market, pointing to a "constructive" fundamental backdrop. He emphasizes market resilience despite geopolitical tensions, with major averages near all-time highs. A primary driver is a 24% year-over-year corporate earnings growth rate, fueled by AI investment and productivity gains. Siegel expects a healthy 2% to 2.5% second-quarter GDP growth rate and policy stability from the Federal Reserve.

Upcoming Economic Data

Investors will focus on July’s Empire State Manufacturing Survey, June’s PPI, monthly core PPI, and June’s Personal Consumption data, all set for release by 8:30 a.m. ET. Federal Reserve speakers include New York Fed President John Williams, Federal Reserve Board Chair Kevin Warsh, and Fed Governor Lisa Cook. The U.S. Federal Reserve Beige Book will be released by 2:00 p.m. ET.

Commodities, Crypto, And Global Equity Markets

Crude Oil WTI futures rose 0.59% to trade around $79.81 per barrel. Gold Spot US Dollar fell 0.65% to hover around $4,026.42 per ounce, while the U.S. Dollar Index spot was 0.02% lower at 100.9030. Bitcoin (CRYPTO: BTC) was trading 3.19% higher at $64,583.06 per coin. Asian markets closed mostly higher, except China’s CSI 300 index. European markets were mostly lower in early trade.