Opening Comment — Wednesday, July 08, 2026
DJIA: 52,925.15, down 130.76
S&P 500: 7,503.85, down 33.58
NASDAQ: 25,818.69, down 302.47
Stocks lower following ceasefire end
Stock futures are lower Wednesday morning following President Donald Trump saying the ceasefire with Iran is over. Investors are looking forward to today’s release of the June 17 Federal Open Market Committee meeting minutes, along with May consumer credit and finalized wholesale inventory data. As of 7:21 AM ET, the Dow is decreasing 1.1%, while the S&P 500 is down 0.9%. The Nasdaq 100 is falling 1.3% relative to fair value on the GLOBEX.
U.S. equities were lower on Tuesday as the U.S. trade deficit widened less than expected in May, following a downward revision to April's deficit, as import growth exceeded forecasts while exports declined less than anticipated. The Dow was down 0.3%, while the tech-heavy Nasdaq Composite fell 1.2%. The S&P 500 decreased 0.5% with five of 11 sectors finishing in negative territory. The Energy sector was the top performer, rising 3.0%, while the Industrials sector was the bottom performer, falling 1.7%.
On the data front, the Mortgage Banker Association’s gauge of mortgage applications decreased by 2.2% for the week ending July 3 versus the prior week’s little change. The finalized May reading of wholesale inventories is expected to show an increase of 0.3% month-over-month (MOM), unchanged from the preliminary reading, while May’s wholesale trade sales is expected to come in at 0.8% MOM versus the prior month’s increase of 2.0%. Meanwhile, the Department of Energy’s measure of crude oil inventories is expected to have decreased by 1.9 million barrels for the week ending July 3 versus the prior week’s decrease of 3.8 million barrels. Consumer credit is expected to have expanded by $17.50 billion in May, lower than the prior month’s increase of $20.73 billion.
Across the pond, European stocks are lower in mid-day trading as France’s current account deficit contracted in May. Investors are also looking ahead to tomorrow’s German May trade balance and Friday’s final June Consumer Price Index (CPI) readings for Germany and France.
Overnight in Asia, stocks were mixed as Japan’s current account surplus expanded less than expected and the country unexpectedly recorded a trade surplus on a balance-of-payments basis in May. South Korea’s current account surplus for May widened on a balance of payment basis.
In FOREX trading, the U.S. dollar is slightly higher as investors await additional color from the Federal Reserve’s most recent meeting.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 5.1% higher at $74.01/barrel.
In the metals complex, gold is 1.3% lower at $4,053.27/ounce following a strengthening U.S. dollar.