US pre-open: Futures higher as markets look to extend sharp rally

5th Aug 2026 10:31

(Sharecast News) - Wall Street futures were in the green ahead of the open on Wednesday, with stocks looking to build on a huge rally from the prior session.

As of 1230 BST, Dow Jones futures were up 0.41%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.42% and 0.15% higher, respectively.

The Dow closed 907.47 points higher on Tuesday on rising hopes of diplomatic progress in the Middle East after US Treasury Secretary Bessent claimed a final deal between the US and Iran to reopen the Strait of Hormuz could be reached this week. However, subsequent reports of a commercial vessel being struck by a projectile offshore Oman raised fears that obstacles likely still remained between Washington and Tehran.

As for Wednesday, SpaceX earnings were in focus prior to the open, with Elon Musk's newly listed firm delivering a stronger‑than‑expected Q2 in its first report as a public company, with revenue hitting $7.8bn and adjusted underlying earnings reaching $3.5bn, well ahead of forecasts. However, SpaceX's AI division remained a major drag, posting a $1.26bn operating loss as AI spend surged to $15.8bn, more than double the prior quarter - sending shares lower and fuelling concerns that its vast infrastructure push may struggle to generate adequate returns.

Chipmaker AMD also headed south in pre-market trading after reporting adjusted earnings that came in only slightly ahead of Wall Street expectations.

In terms of Wednesday's earnings, Eli Lilly raised its full‑year revenue guidance to $85bn to $87bn on sustained demand for its GLP-1 weight‑loss and diabetes drugs, lifting shares in pre‑market, with the update coming a day after Novo Nordisk also upgraded forecasts, underscoring intensifying competition in a global obesity‑drug market expected to top $100bn in the US by 2030.

Disney shares rose over 4% pre‑market after fiscal Q3 earnings beat expectations, with adjusted earnings per share of $2.06 topping forecasts and revenues up 7% at $25.17bn, while CVS Health posted a 7.3% rise in Q2 revenue to $106.1bn, while GAAP EPS jumped to $2.31 and adjusted EPS to $2.58 as operating income nearly doubled to $4.7bn.

Uber's Q2 results landed broadly in line, with EPS at $0.81 and revenues up 12% at $14.19bn, while total bookings reached $58bn, slightly ahead of estimates. However, its Q3 outlook disappointed, with guidance for bookings and EPS coming in below Wall Street expectations.

Western Digital, DoorDash and Honeywell will report after the close.

On the macro front, US mortgage applications decreased by 2.9% in the week ended 31 July, according to the Mortgage Bankers Associaiton, building on the prior week's 6.4% increase and marking the sharpest back-to-back decline in two months. Last week's drop came as benchmark mortgage rates increased, with the 30-year fixed contract rising to a one-year high of 6.81%, amid concerns that the Federal Reserve may not be able to fight inflation in the near term. Applications to refinance a mortgage, which are more sensitive to week-to-week interest changes, dropped 2% week-on-week, while applications to purchase a home fell by 4%.

Stil to come, ADP employment change figures will be released at 1315 BST, while S&P Global's July composite and services PMIs will be published at 1445 BST and the ISM's services PMI will follow at 1500 BST.

Reporting by Iain Gilbert at Sharecast.com