US stock futures steady after Wall St gains on strong bank earnings, Fed cut bets

Investing.com-- U.S. stock futures were little changed on Wednesday evening after the S&P 500 and Nasdaq ended higher in a choppy session, underpinned by a wave of strong results from banking giants and growing expectations that the Federal Reserve could cut interest rates later this month.

Investors also weighed the renewed U.S.-China trade tensions and a prolonged government shutdown, which limited gains.

S&P 500 Futures was largely muted at 6,714.0 points, while Nasdaq 100 Futures edged up 0.1% to 24,938.75 points by 20:13 ET (00:13 GMT). Dow Jones Futures traded 0.1% higher at 46,517.0 points.

Wall Street supported by earnings, Fed easing bets

Wall Street ended mostly higher on Wednesday. The S&P 500 rose 0.4%, while the NASDAQ Composite advanced 0.7%. The Dow Jones Industrial Average ended largely flat.

Major banks reported better-than-expected profits, buoyed by resilient investment banking and trading revenue. Results from Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), and Goldman Sachs (NYSE:GS) helped lift sentiment.

Gains were also aided by expectations of Fed easing later this month. Federal Reserve Governor Stephen Miran on Wednesday called for quick rate cuts, citing the economic risk of a further strain in U.S.-China trade relations. 

The remarks arrived a day after Fed Chair Jerome Powell’s dovish comments reinforced bets that the central bank will roll out rate reductions at its last two meetings of 2025.

However, signs of rising friction between Washington and Beijing capped Wall Street’s rise. Treasury Secretary Bessent added to fears of a trade war, saying in a CNBC interview that the Trump administration isn’t likely to back down from its tough negotiating stance even if markets react negatively. 

Trump has floated cutting off trade ties with China in the cooking‐oil space, accusing Beijing of “purposefully not buying” U.S. soybeans.

The renewed tensions came as the U.S. government shutdown entered its third week, delaying key economic data releases and heightening investor uncertainty.

United Airlines, Salesforce results in focus

United Airlines (NASDAQ:UAL) fell nearly 3% in extended trading despite reporting third-quarter earnings that beat Wall Street estimates. The carrier forecast records revenue for the current quarter.

Salesforce Inc (NYSE:CRM) jumped nearly 4% after the closing bell. The cloud software company raised its long-term revenue target to more than $60 billion by 2030 and unveiled a $7 billion share buyback program, surpassing analysts’ expectations.

Investors await more quarterly earnings this week.