Opening Comment — Wednesday, October 07, 2026
DJIA: 51,521.28, up 253.38
S&P 500: 7,818.93, up 44.98
NASDAQ: 27,599.89, up 122.58
Stocks lower before FOMC minutes
Stock futures are lower Wednesday morning ahead of today’s release of the latest Federal Open Market Committee (FOMC) meeting minutes, which investors will analyze for clues regarding the Federal Reserve’s (Fed’s) policy outlook and the timing of any potential future rate adjustments. As of 7:16 AM ET, the Dow is decreasing 0.6%, while the S&P 500 is down 0.3%. The Nasdaq 100 is falling 0.7% relative to fair value on the GLOBEX.
U.S. equities were higher on Tuesday as the U.S. trade deficit widened more than expected in August, with imports and exports increasing by 4.3% and 1.4% month-over-month (MOM), respectively, both more than expected. The Dow was up 0.5%, while the tech-heavy Nasdaq Composite also rose 0.5% and hit a new record closing level of 27,599.89. The S&P 500 increased 0.6% and set a new record closing level of 7,818.93, with 10 of 11 sectors finishing in positive territory. The Utilities sector was the top performer, rising 3.0%, while the Health Care sector was the bottom performer, falling 0.2%.
On the data front, the Mortgage Bankers Association’s gauge of mortgage applications decreased 4.2% for the week ending October 2 versus the prior week’s decrease of 6.0%. The New York Fed will release their September Survey of Consumer Expectations, with the measure of one-year inflation expectations projected to come in at 3.64% from the prior month’s 3.58%. Consumer credit is expected to have expanded by $15.00 billion in August, lower than the prior month’s increase of $18.06 billion. The Department of Energy’s measure of crude oil inventories is expected to have increased by 1.915 million barrels for the week ending October 2 versus the prior week’s increase of 922,000 barrels.
Across the pond, European stocks are lower in mid-day trading as Germany’s industrial production rebounded more strongly than expected in August, rising 2.0% MOM and 2.3% year-over-year (YOY). Meanwhile, France’s current account deficit narrowed to €1.5 ($1.7) billion in August, while the country’s trade deficit contracted to €6.1 ($6.8) billion.
Overnight in Asia, stocks were lower as Japan’s labor cash earnings rose 3.8% YOY in August, slightly exceeding expectations, while real wages increased 1.5% YOY, matching expectations. Additionally, Japan’s preliminary August Leading Index rose to 118.0. China’s foreign exchange reserves declined more than expected, falling to $3.40 trillion in September.
In FOREX trading, the U.S. dollar is higher ahead of today’s release of FOMC meeting minutes.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.8% higher at $90.13/barrel and Brent crude oil is up 1.5% at $102.06/barrel despite an expected increase in reported crude oil inventories and amidst heightened conflict between Saudi Arabia and the Houthis.
In the metals complex, gold is 1.1% lower at $4,116.99/ounce following a strengthening U.S. dollar.