Investing.com--U.S. stocks rose Wednesday, rebounding after a couple of negative sessions as investors assessed the latest trade negotiations ahead of the release of the minutes from the last Federal Reserve meeting.
At 05:35 ET (09:35 GMT), the Dow Jones Industrial Average gained 200 points, or 0.5%, the S&P 500 index rose 30 points, or 0.5%, and the NASDAQ Composite 100 Futures}} climbed 145 points, or 0.7%.
Trump targets copper for tariffs
The main Wall Street averages had started the week on the back foot after U.S. President Donald Trump sent letters to several major economies outlining trade tariffs against them, while also postponing the effective date of his tariffs to August 1 from July 9.
He insisted at a cabinet meeting on Tuesday that the new deadline will not be pushed back any further, after stating earlier this week that it was “not 100% firm.” He added that negotiations are going well with the European Union and China, but flagged that the EU is days away from receiving its own tariff letter.
The European Union is working toward a trade agreement with the United States but faces challenges in securing immediate tariff relief and protection against new trade measures, according to Bernd Lange, head of the European Parliament’s trade committee earlier Wednesday.
The president also raised the prospect of a 50% tariff on imported copper, in the latest sign that his aggressive trade agenda involves not just countries, but specific sectors as well. Copper is a particularly crucial metal who uses apply to vehicle production, military hardware, power grid infrastructure and more.
Other levies on everything from pharmaceuticals to semiconductors could soon be unveiled, Trump suggested.
Meanwhile, Treasury Secretary Scott Bessent claimed that Trump’s levies have raked in $100 billion in income for the U.S. this year and predicted that the number could climb to $300 billion by the end of December. Bessent flagged that the major collections began in the second quarter, when Trump instituted a baseline 10% duty and lifted tariffs on items like steel, aluminum and autos.
Fed minutes loom large
The minutes of the Fed’s June meeting are due later in the session, and are expected to provide more insight into the central bank’s plans for interest rates.
Policymakers left borrowing costs unchanged at a target range of 4.25% to 4.5% at the gathering, citing the prudence of a wait-and-see approach to future decisions as the impact of Trump’s tariffs becomes clearer.
Strong labor data released last week seemingly reduced the chances of the central bank cutting interest rates anytime soon.
Trump on Tuesday kept up his calls for lower interest rates while also attacking Fed Chair Jerome Powell. The president touted a study by the Council of Economic Advisers which claimed that his tariffs had not pushed up inflation so far.
The Wall Street Journal reported Tuesday that White House economic adviser Kevin Hassett is emerging as a “serious contender” to replace Powell as the next Fed Chair.
Hassett is one of Trump’s closest economic advisers, and is now seen as a preferred pick over earlier favorite Kevin Warsh, a former Fed governor, the WSJ reported.
Limited equities upside near term - Goldman
Goldman Sachs strategists see limited upside for equities in the near term, citing elevated valuations and a deteriorating macroeconomic backdrop that could increase the risk of a market drawdown.
The team, led by Christian Mueller-Glissmann, remains neutral on equities over a three-month horizon but maintains an overweight stance for the 12-month view, supported by “structural growth drivers, fiscal and monetary easing, restructuring and high shareholder returns.”
They argue that “equity valuations often tend to overshoot” in late-cycle environments, particularly with negative inflation momentum outside the U.S.
But for the near-term, the strategists caution that “the probability of an equity drawdown is now larger than that of a large rally.”
Crude slips lower
Crude prices slipped lower after industry data showed a sharp increase in U.S. crude inventories amid concerns tariffs could curb demand for oil.
At 09:35 ET, Brent futures dropped 0.6% to $69.76 a barrel and U.S. West Texas Intermediate crude futures were down 0.8% to $67.77 a barrel.
Both contracts climbed to a two-week high on Tuesday, driven by supply disruption concerns which stemmed from fresh Houthi attacks on Red Sea shipping lanes.
The American Petroleum Institute reported during the previous session a sharp, unexpected rise in {{8849|U.S. crcrude oil inventories for the week ending on July 4, with a build of 7.1 million barrels, far exceeding the forecast 2.8 million‑barrel draw.
Market watchers now await confirmation from the Energy Information Administration report, due later in the day, especially as the Independence Day holiday weekend usually sees strong travel demand.
Ambar Warrick contributed to this article