DOW Futures experience a modest increase as the new cycle of corporate earnings commences, with the third-quarter reporting period gaining momentum. European chip equipment leader ASML presents a subdued financial outlook, cautioning about a “significant” drop in sales within China. Markets, in search of fresh economic indicators amid a continuing government shutdown, will be monitoring the release of the Federal Reserve’s Beige Book.

DOW Futures indicated an upward trajectory on Wednesday, as investors prepared for an array of corporate earnings reports while also considering the prospects for additional interest rate reductions by the Federal Reserve this year. By 02:34, the Dow futures contract had increased by 103 points, representing a 0.2% rise, while S&P 500 futures had gained 25 points, or 0.4%. Additionally, Nasdaq 100 futures had climbed by 131 points, equivalent to a 0.5% increase. The primary indices concluded the trading day with a mixed performance on Tuesday, significantly rebounding from earlier session declines. Analysts indicated that the rebound was primarily driven by positive sentiment surrounding a surge of bank earnings and robust figures from companies in various sectors. Comments from Fed Chair Jerome Powell further solidified expectations that the central bank will implement rate reductions at its final two meetings of 2025, subsequent to its decision to reduce borrowing costs by 25 basis points in September. U.S. Trade Representative Jamieson Greer’s comments during an interview alleviated certain concerns regarding a potential revival of trade tensions between Washington and China. However, President Donald Trump subsequently criticized Beijing for its apparent deficiency in soybean purchases, labeling it a “economically hostile act.”

ASML has issued a caution regarding a notable decrease in sales from China, which poses a risk to the overall sentiment concerning the semiconductor giant’s quarterly earnings, which were otherwise buoyed by a surge of optimism surrounding artificial intelligence. The Dutch firm has recently ascended to the position of Europe’s largest listed company, primarily driven by robust demand for its lithography tools, which are integral to the manufacturing of the chips that support the AI boom. CEO Christophe Fouquet indicated that the company was experiencing “positive momentum” in investments into AI. A series of agreements between AI firms and chipmakers have emerged in September and October, contributing to the excitement surrounding this emerging technology while also raising concerns about a potential bubble akin to the dotcom boom of the late 1990s. In the third quarter, net bookings, which is ASML’s most scrutinized financial metric, reached 5.40 billion euros, exceeding expectations. However, the group cautioned about a potential decline in sales in China next year, a market that represented nearly one-third of new tool sales during the initial nine months of 2025. This led to a forecast of flat or increased sales in 2026 — a tepid outlook for a company expected to gain significantly from AI advancements.

OpenAI is formulating a five-year strategy to address the over $1 trillion in expenditures it has committed to advancing its AI development, as reported by the Financial Times on Wednesday. The AI startup is exploring new revenue streams, establishing debt partnerships, and pursuing additional fundraising efforts as outlined in the report by the FT, which referenced several individuals with knowledge of the situation. The report indicated that negotiations are underway to offer governments and businesses more tailored products. All efforts will be focused on fulfilling debt obligations, considering that OpenAI remains predominantly a loss-making enterprise. The company’s capital obligations significantly exceed its income, a trend that has deterred certain investors, including Microsoft. OpenAI has committed to acquiring 26 gigawatts of capacity from Oracle Corporation, Nvidia, Advanced Micro Devices, and Broadcom, a move that is expected to exceed $1 trillion in costs over the next decade, according to the FT. Recent reports indicated that OpenAI generated approximately $4.3 billion in the first half of 2025, while also recording a loss of $13.5 billion.

A multitude of companies are set to announce their most recent results on Wednesday, thereby initiating the third-quarter earnings season. Among those is United Airlines, which is poised to disclose its latest figures following the closing bell on Wednesday. Investors are particularly interested in understanding how the carrier anticipates travel demand will develop for the remainder of the year. In July, United, headquartered in Chicago, forecasted that its earnings for the third quarter would be adversely affected by operational constraints at Newark airport, a vital hub for the airline and among the busiest in the United States. United has indicated an anticipated double-digit increase in business bookings for the quarter relative to the previous three-month period, coinciding with a reduction in geopolitical tensions and overall economic uncertainty. Prominent financial institutions Bank of America and Morgan Stanley, alongside the pharmaceutical company Abbott Laboratories, will prominently feature in today’s earnings agenda.

The economic landscape remains relatively subdued due to an extended U.S. government shutdown, directing attention towards the Fed’s Beige Book scheduled for release on Wednesday. The report compiles anecdotal evidence regarding the condition of the American economy, emerging at a time when the shutdown compels policymakers and investors to explore alternative data sources. The prevailing uncertainty has obscured the outlook for the Federal Reserve’s interest rate trajectory this year. The central bank’s drawdown in September was associated with an initiative to bolster a decelerating labor market, even in the face of persistent inflationary pressures. Given the absence of data concerning employment and price increases, the manner in which officials will navigate rate decisions for the remainder of 2025 continues to be a topic of considerable discussion. Markets appear highly confident that the Federal Reserve will reduce rates by a quarter of a percentage point during its meeting on October 28-29, with further cuts anticipated in December.