Stock futures climb amid hopes of U.S.-Iran deal; SpaceX falls 10%: Live updates

Stock futures rose early Wednesday after a huge market rally that saw major indexes, including the broad S&P 500, close at a record high as expectations for a looming resolution to the Iran war lifted market sentiment.

Dow futures were up 146 points, or 0.27%. S&P 500 futures added 0.37%. Nasdaq-100 futures were up 0.16%.

SpaceX shares plunged on Wednesday after a surge in AI unnerved rattled investors and clouded an otherwise expectation-beating quarter. The stock was down 8% in premarket trading.

In SpaceX’s first earnings report as a public company on Tuesday, Elon Musk‘s space firm said its capital expenditures jumped sixfold to $18.4 billion in the second quarter. This figure was ahead of analyst expectations, with the majority of the spending going towards AI.

Chip giant AMD also dropped 7% in premarket after posting adjusted earnings that only came slightly ahead of the Street’s estimates.

Asia-Pacific markets rose Wednesday, with South Korean stocks leading gains after the Kospi closed 3.76% higher. Japan’s Nikkei 225 rose 3.66%. Australia’s benchmark S&P/ASX 200 was 0.9% higher. Mainland China’s CSI 300 added 1.24% Hong Kong’s Hang Seng Index was up 0.13% in the last hour of trade.

The pan-European Stoxx 600 also opened in the green, after reaching an all-time high on Tuesday.

Meanwhile, oil prices were slightly higher. West Texas Intermediate futures for September delivery rose about 0.3% to $76.03 per barrel. Brent crude futures for October delivery, the international benchmark, were up 0.8% at $80.04 a barrel.

Markets jumped Tuesday, lifted by solid earnings and comments from Treasury Secretary Scott Bessent that the U.S. and Iran could be closing in on a deal to reopen the Strait of Hormuz. The S&P 500 rose 1.8% to close above 7,700 for the first time, and the Dow gained more than 900 points for another record close.

Entertainment heavy-hitter Disney is slated to report on Wednesday morning. Results are also due for ride-sharing giant Uber and pharmaceutical company Eli Lilly. E.l.f Beauty and DoorDash will share quarterly reports in the afternoon.

On the economic front, traders will be watching for ADP’s private payrolls report for July, out Wednesday morning. The Dow Jones consensus estimate anticipates private employers added 75,000 jobs last month. The S&P Global Services PMI and ISM non-manufacturing readings for July are also due.