U.S. stock futures rose on Wednesday, May 7, 2025, buoyed by scheduled trade talks between the U.S. and China and anticipation surrounding the conclusion of the latest Federal Reserve policy meeting. Investors are keenly watching the developments, particularly as the Federal Reserve is expected to maintain interest rates unchanged during its session today.
As the market opened, futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq were all approximately 0.6% higher, recovering from declines experienced over the previous two sessions. This optimism is also reflected in a surge in Bitcoin prices, which rose 2% to around $97,000, indicating a broader positive sentiment among investors.
Among the notable premarket movers, shares of Walt Disney (NYSE:DIS) jumped 6.2% following the company's fiscal second-quarter earnings report, which exceeded analysts' expectations. Disney reported earnings per share (EPS) of $1.45 on revenue of $23.62 billion, significantly surpassing the anticipated EPS of $1.20 and revenue of $23.17 billion. The company attributed its strong performance to better-than-expected growth in its Disney+ streaming service, which gained subscribers at a faster rate than predicted, reaching 126 million users against expectations of 123.6 million. Furthermore, Disney raised its full-year adjusted EPS outlook to $5.75, projecting a 16% increase from the previous fiscal year.
Conversely, Uber Technologies (NYSE:UBER) saw its stock fall by 3.5% after reporting disappointing quarterly gross bookings and revenue. The ride-hailing service's earnings report highlighted challenges in its rideshare business amid concerns about a slowing economy.
Advanced Micro Devices (NASDAQ:AMD) also experienced a positive surge, with its stock rising 1.5% after the chipmaker provided optimistic second-quarter revenue guidance. The company's forecast was bolstered by clients rushing to secure purchases ahead of upcoming U.S. tariffs.
However, not all companies fared well. Marvell Technology (NASDAQ:MRVL) saw its stock drop 7% after announcing a postponement of its Investor Day, initially set for June 10, 2025, now rescheduled for 2026, citing the uncertain macroeconomic landscape. Additionally, Super Micro Computer (NASDAQ:SMCI) reported a 5.3% decline in its stock after narrowly beating earnings estimates but falling short on revenue and subsequently lowering its full-year outlook.
In the pharmaceutical sector, shares of Novo Nordisk (CSE:NOVOb) (NYSE:NVO) rose 5.5% despite the company lowering its sales forecasts for the first time since launching its Wegovy weight-loss drug four years ago. Novo Nordisk now anticipates year-over-year sales growth of 13% to 21% and operating profit growth of 16% to 24% at constant exchange rates for 2025, down from previous estimates of 16% to 24% and 19% to 27%, respectively.
Meanwhile, Boeing (NYSE:BA) saw a modest increase of 0.3% despite reports from the Financial Times indicating that the European Union is preparing to propose tariffs on the aircraft manufacturer, a move that could further complicate trade relations if negotiations with Washington falter.
Tripadvisor (NASDAQ:TRIP) shares rose 3.4% after the online travel company reported first-quarter results that exceeded analyst expectations, reflecting a rebound in travel demand. On the other hand, Sarepta Therapeutics (NASDAQ:SRPT) faced a significant decline of 20% after reporting strong revenue growth in the first quarter, which was overshadowed by operational challenges and a notable reduction in guidance.
As the Federal Reserve concludes its two-day meeting today, investors are keen to hear from Fed Chair Jerome Powell regarding future monetary policy directions. The central bank is widely expected to keep interest rates steady at their current range of 4.25% to 4.5%. This decision comes amidst pressure from President Donald Trump, who has been vocal about the need for lower rates to stimulate the economy as he implements his tariff policies.
In summary, the stock market is experiencing a mix of optimism and caution as various sectors react to earnings reports and macroeconomic factors. The upcoming trade talks between the U.S. and China add another layer of complexity to the market dynamics, with investors closely monitoring how these discussions may influence economic conditions moving forward.