The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.8%, and the actively traded Invesco QQQ Trust (QQQ) was 1.1% higher in Wednesday's premarket activity as signs of potential de-escalation in the Iran conflict and falling oil prices improve risk sentiment.
US stock futures were also higher, with S&P 500 Index futures up 0.8%, Dow Jones Industrial Average futures advancing 0.7%, and Nasdaq futures gaining 1% before the start of regular trading.
US mortgage applications fell 10.4% in the week ended March 27 as borrowing costs continued to rise, extending the prior week's decline, Mortgage Bankers Association data showed Wednesday.
US private-sector employment increased by 62,000 in March, exceeding expectations for a 40,000 gain, ADP data showed.
US retail sales rose 0.6% in February, topping expectations for a 0.5% gain after a 0.1% decline in the prior month, while sales excluding autos increased 0.5% versus expectations for a 0.3% gain and sales excluding autos and gas rose 0.4%, also above forecasts for a 0.3% gain.
The final Purchasing Managers' manufacturing index for March will be released at 9:45 am ET, followed by the Institute for Supply Management's manufacturing index for the same month at 10 am ET. The weekly EIA domestic petroleum inventories report is due at 10:30 am.
Federal Reserve Governor Michael Barr and St. Louis Fed President Alberto Musalem are slated to speak on Wednesday.
In premarket activity, bitcoin was up by 1.2%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1.3% higher, Ether ETF (EETH) advanced 1.9%, and Bitcoin & Ether Market Cap Weight ETF (BETH) retreated by 0.3%.
Power Play:
Health Care
The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.5%, the Vanguard Health Care Index Fund (VHT) was up 1%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was 0.7% higher.
Zymeworks (ZYME) stock was down more than 3% premarket after the company appointed Kristin Stafford as its chief financial officer.
Winners and Losers:
Consumer
The State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.2%, and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) gained 0.1%. The iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) advanced by 1%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was 0.9% higher.
Tesla's (TSLA) shares were up more than 2% pre-bell after Reuters reported that new Tesla car registrations soared in key European markets in March.
Financial
The State Street Financial Select Sector SPDR ETF (XLF) advanced 0.6%. Direxion Daily Financial Bull 3X Shares (FAS) was up 2%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 2% lower.
FirstSun Capital Bancorp (FSUN) shares were up more than 1% pre-bell after the company closed its all-stock acquisition of First Foundation (FFWM).
Industrial
The State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.9%, while the Vanguard Industrials Index Fund (VIS) was down 0.1%, and the iShares US Industrials ETF (IYJ) was inactive.
QXO (QXO) stock was up more than 2% before the opening bell after the company said that it has completed its $2.25 billion acquisition of Kodiak Building Partners from Court Square Capital Partners.
Energy
The iShares US Energy ETF (IYE) was down 1.2%, while the State Street Energy Select Sector SPDR ETF (XLE) fell by 1.9%.
Petroleo Brasileiro (PBR) stock was down more than 2% before Wednesday's opening bell after the company said late Tuesday that the chairman of its board, Bruno Moretti, has resigned from his position, following his appointment as Brazil's Minister of Planning and Budget.
Technology
The State Street Technology Select Sector SPDR ETF (XLK) advanced 1.6%, and the iShares US Technology ETF (IYW) was 1.6% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 1.4%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was 0.9% higher, while the iShares Semiconductor ETF (SOXX) rose by 2%.
Taiwan Semiconductor Manufacturing (TSM) shares were up more than 1% in premarket activity after Reuters reported the company plans to begin equipment setup and mass manufacturing of 3-nanometer semiconductors at its second Japanese facility in 2028.
Commodities
Front-month US West Texas Intermediate crude oil retreated by 2.7% to $98.60 per barrel on the New York Mercantile Exchange. Natural gas declined by 1.7% to $2.83 per 1 million British Thermal Units. The United States Oil Fund (USO) was down by 3.5%, while the United States Natural Gas Fund (UNG) was 1.7% lower.
Gold futures for March were up by 2.3% at $4,787.60 an ounce on the Comex. Silver futures gained 0.7% to reach $75.43 an ounce. SPDR Gold Shares (GLD) advanced by 1.2%, and the iShares Silver Trust (SLV) was 0.4% lower.