US futures up as cooler inflation, ASML outweigh Iran risk
US stock futures ticked higher after softer-than-expected inflation data eased Federal Reserve rate fears, while ASML's strong results signalled sustained artificial intelligence investment.
Wall Street futures pointed to a cautiously positive open on Wednesday. Nasdaq 100 futures gained 0.6 percent and S&P 500 futures rose 0.2 percent, while Dow Jones futures edged 0.1 percent lower. The mixed but generally upward momentum reflected a market weighing encouraging domestic price data and strong corporate earnings against persistent military tensions in the Middle East.
Fresh US inflation figures came in below expectations, directly reducing market expectations for near-term interest rate hikes by the Federal Reserve. Because lower borrowing costs disproportionately support the discounted cash flow valuations of growth and technology equities, the data drove the outperformance in tech-heavy index futures. The softer price pressures suggest the central bank's current policy stance is successfully restraining inflation without necessarily triggering a severe economic slowdown.
That underlying market caution stems from a fourth consecutive day of US military strikes against Iranian targets. President Donald Trump told Fox News that operations would persist until Tehran agrees to return to negotiations. "They better make a deal," Trump said, warning that otherwise Iran would "not have anything left."
The geopolitical risk remains a critical focus for investors because any sudden disruption to global oil supplies could reignite the very inflationary pressures that lifted equity futures earlier in the session. Such a spike in energy costs would complicate the Fed's interest rate trajectory and threaten the broader market rally. However, Trump offered one concession to global trade, confirming he had abandoned plans for a shipping protection fee in the Strait of Hormuz, which provided some relief to shipping companies.
Offsetting the geopolitical drag was a significant uplift from the semiconductor sector. ASML, the world's largest supplier of semiconductor manufacturing equipment, reported second-quarter revenue of 9.33 billion euros, comfortably beating market expectations.
The company also raised its 2026 revenue guidance to a range of 43 billion euros to 45 billion euros, a substantial increase from its prior outlook. Because ASML's equipment is a prerequisite for manufacturing the most advanced chips, its order book serves as a reliable proxy for capital expenditure across the artificial intelligence supply chain. The upgraded guidance effectively reinforced investor confidence that major technology clients remain committed to heavy infrastructure spending.
