Stock Market Update

Equity futures point to a slightly lower opening this morning following Tuesday's mixed session, with relatively little in the way of new developments overnight to provide a clear directional catalyst.

Crude oil is modestly higher after settling lower yesterday as investors continue to monitor developments surrounding Iran and the Strait of Hormuz. The U.S. and Iran held talks yesterday, with Iran presenting conditions for reopening the strait that reportedly include lifting the U.S. naval blockade, releasing frozen Iranian assets, and ending the war on all fronts, according to Axios.

AI also remains in focus ahead of President Trump's meeting with Chinese President Xi Jinping. The two leaders have pushed back against slowing AI development, even as the U.S. and China explore potential areas of cooperation surrounding risks from increasingly capable AI models.

For now, however, neither development has produced a significant shift in the market backdrop, leaving equity futures modestly lower ahead of the open.

In corporate news: 

• Meta Platforms' (META 739.00, +2.41, +0.3%) Muse could disrupt wealth managers, financial companies, and brokerages, according to The Wall Street Journal. 
• IONQ (IONQ 45.80, +5.06, +12.4%) moves sharply higher after demonstrating the industry's first end-to-end real-time quantum error correction decoder running on a standard CPU.
• Microsoft (MSFT 502.63, +4.63, +0.9%) was upgraded to Buy from Hold at Stifel, with a target price of $575

On the U.S. data front:

• 09/19 MBA Mortgage Applications Index -1.5%; prior -4.1%

Today's remaining economic calendar:

• 9:45 AM ET: September S&P Global U.S. Manufacturing PMI - Prelim; prior 53.9
• 9:45 AM ET: September S&P Global U.S. Services PMI - Prelim; prior 56.5
• 10:30 AM ET: 09/19 EIA Crude Oil Inventories; prior -0.64M

In corporate news:

• Worthington Enterprises (WOR 68.76, +9.82, +16.66%) beat fiscal first-quarter earnings and revenue estimates, with revenue increasing 13.2% from a year ago.
• Cracker Barrel (CBRL 48.99, +3.51, +7.72%) topped fiscal fourth-quarter earnings and revenue estimates and issued fiscal 2027 revenue guidance in line with expectations.
• NN Inc. (NNBR 3.68, +0.31, +9.20%) raised its fiscal 2026 revenue and adjusted EBITDA guidance, with the revenue range extending above the FactSet consensus.
• AC Immune (ACIU 2.81, +0.08, +2.93%) said its Parkinson's vaccine candidate met all primary safety, tolerability, and immunogenicity endpoints in Part 1 of a Phase II trial.
• European Markets Update: DAX -0.8%, FTSE -0.1%, CAC -0.1% (VGK 88.75, -0.68, -0.76%). Major European indices trade mostly lower on Wednesday, with falling oil prices and signs of progress in US-Iran diplomacy providing some support while investors continue to monitor geopolitical risks. Separately, improved Composite PMI readings for September are driving speculation about another ECB rate hike in Octob….

Reviewing overnight developments:

Nikkei reported that Asia-Pacific markets finished mixed as investors remained cautious ahead of the Trump-Xi summit and technology shares faced renewed pressure in Hong Kong. Japan's market was closed for a holiday.

In news:

• Preliminary U.S.-China talks did not produce an agreement to extend the trade truce, leaving trade, artificial intelligence, Taiwan, and other geopolitical issues in focus.
• Technology shares in Hong Kong weakened, while lower Brent crude prices provided some relief from recent inflation concerns.

In economic data:

• South Korea's September Consumer Confidence 106.6 (prior 104.5)
• Australia's September S&P Global Manufacturing PMI 49.3 (prior 52.0) and S&P Global Services PMI 51.4 (prior 53.2)
• India's September HSBC Manufacturing PMI 55.7 (prior 52.8) and HSBC Services PMI 55.8 (prior 54.1)
• Hong Kong's August CPI 0.1% m/m (prior 0.2%) and 1.7% yr/yr (prior 1.7%)

Equity Markets:

• Japan's Nikkei: closed for holiday
• Hong Kong's Hang Seng: -1.0%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.4%
• South Korea's Kospi: +0.9%
• Australia's All Ordinaries: +0.1%

Major European markets trade mostly lower as investors assess geopolitical developments and stronger preliminary business activity readings.

In news:

• Falling oil prices and signs of progress in U.S.-Iran diplomacy have provided some support, though geopolitical risks remain in focus.
• The stronger eurozone Composite PMI reading has prompted speculation about another ECB rate increase in October.

In economic data:

• Eurozone's September HCOB Manufacturing PMI 52.7 (expected 52.6; prior 52.7) and Services PMI 53.0 (expected 51.4; prior 51.6); Composite PMI 53.1 (expected 51.7; prior 52.0)
• Germany's September HCOB Manufacturing PMI 53.8 (expected 54.1; prior 54.3) and Services PMI 52.9 (expected 49.9; prior 49.7); Composite PMI 53.8 (expected 51.8; prior 51.8)
• France's September HCOB Manufacturing PMI 50.3 (expected 50.9; prior 51.1) and Services PMI 51.4 (expected 48.3; prior 48.0); Composite PMI 51.2 (prior 48.5)
• U.K.'s September S&P Global Manufacturing PMI 52.0 (expected 51.5; prior 51.7) and Services PMI 51.7 (expected 52.0; prior 52.5); Composite PMI 51.7 (expected 52.0; prior 52.5)

Equity Markets

• STOXX Europe 600: -0.3%
• Germany's DAX: -0.8%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -0.4% ---FX--- EUR/USD: -0.4% to 1.1413 GBP/USD: -0.4% to 1.3285 USD/CHF: +0.3% to 0.8229