US stock market: S&P 500 futures edge higher, gains capped by West Asia tensions

US stock futures traded higher on Wednesday, July 15, supported by strength in semiconductor stocks after Dutch chipmaking equipment maker ASML raised its annual sales forecast, reinforcing optimism around artificial intelligence-driven demand.

However, gains remained limited as renewed US military strikes on Iran kept geopolitical tensions in focus.

Futures tied to the S&P 500 rose about 0.1%, while Nasdaq-100 futures gained 0.4%. Dow Jones Industrial Average futures hovered around the flatline as investors looked to extend the previous session’s gains.
Chip stocks led the premarket advance after ASML increased its sales outlook for the second time this year and said it plans to expand chipmaking equipment production capacity by 30%, easing concerns over supply-chain bottlenecks. The VanEck Semiconductor ETF climbed more than 1%, with ASML rising around 3%, while Intel and Lam Research gained more than 2% each.

Investor sentiment, however, remained cautious after the US Central Command (CENTCOM) said American forces carried out additional strikes against Iran. According to CENTCOM, the attacks were aimed at degrading Iranian military capabilities used to target commercial shipping in the Strait of Hormuz.

Oil prices moved higher following the development, with West Texas Intermediate (WTI) crude futures rising 0.6% to trade above $79 per barrel, while Brent crude gained 0.7% to trade above $85 per barrel.

On the macroeconomic front, investors will monitor the US Producer Price Index (PPI) and the Federal Reserve’s Beige Book later in the day, following Tuesday’s softer-than-expected consumer inflation data, which marked the largest monthly decline in inflation since April 2020.

Markets will also watch for comments from Federal Reserve Governor Kevin Warsh, who is scheduled to testify before the Senate Banking Committee.