Dow Jones and S&P500: US Stocks Rise Pre-Market as BofA, ASML Lead Market Movers

Dow Futures Climb as Bank Earnings Outshine Trade Concerns

Stock futures are higher early Wednesday, with upbeat earnings setting the tone despite a fresh round of trade tension with China. Dow futures are up over 200 points, led by a strong banking tape and better guidance from key corporates.

At 12:33 GMT, Dow Futures are trading 46,735.00, up 235.00 or +0.51%. S&P 500 Index Futures are at 6736.25, up 49.75 or +0.74% and Nasdaq-100 Index Futures are trading 25005.00, up 242.50 or +0.98%.

Is the Market Ignoring the China Risk?

Tuesday’s late-day volatility — sparked by Trump’s threat to slap a cooking oil embargo on China — didn’t carry over. Futures bounced overnight, showing traders are still focused on earnings, not tariffs. That could change fast: the next escalation could hit before November 1, when Trump’s proposed 100% tariffs could go live. U.S. Trade Rep Jamieson Greer made it clear the clock is ticking, and it’s China’s move next.

The cooking oil angle may sound odd, but there’s money in the mix. The U.S. buys nearly half of China’s used cooking oil exports, a 1.27 million metric ton trade last year. That’s why names like ADM and Bunge caught a bid in after-hours trading. Markets are sniffing around the edges of this story — but they haven’t priced in real fallout.

Earnings Are Doing the Heavy Lifting

Bank of America is leading the charge, up 4% after smashing Q3 estimates. EPS came in at $1.06 versus the $0.95 expected, with investment banking strength doing most of the work. Morgan Stanley also surprised to the upside, posting $2.80 a share on $18.2 billion in revenue. That’s well above the Street’s $2.10 forecast.

Add that to solid numbers from Goldman and Wells Fargo yesterday, and the banking sector looks less fragile than many feared. It’s not euphoric — but buyers are stepping in on the beats.

Tech got a lift too, with ASML up 4% after guiding 2026 sales above 2025. The chip equipment maker sees long-term tailwinds from AI demand, and traders are rewarding the forward-looking confidence.

Can This Rally Stick Without a Trade Breakthrough?

Not everyone’s buying the bounce. Art Hogan at B. Riley is warning that earnings strength might not be enough to push indexes past the highs. With the government still shut down and China tensions unresolved, resistance could hold — even if numbers keep beating.

The real test comes in guidance. If the shutdown drags on, expect CEOs to hedge more on the outlook. And if China retaliates hard, the market may not shrug it off so easily.

With CPI delayed until October 24, earnings remain in the spotlight — but geopolitical risk is creeping back in.

More Information in our Economic Calendar.