Futures edge higher, Disney to report - what's moving markets
Investing.com — U.S. stock futures inch up Wednesday, as investors digest a Moody's downgrade of several midsized banks that hit shares on Wall Street in the previous session. Elsewhere, Disney gears up to unveil its latest results as its ESPN division signs a partnership with gambler Penn Entertainment. Meanwhile, inflation in China contracts in July, further exacerbating concerns over the country's post-COVID recovery.
1. Futures point higher
U.S. stock futures edged into the green on Wednesday, hinting at a rebound from declines in the prior session that were sparked by a downgrade of several regional banks by Moody's.
By 05:23 ET (09:23 GMT), the Dow futures contract added 91 points or 0.26%, S&P 500 futures rose by 17 points or 0.37%, and Nasdaq 100 futures gained 65 points or 0.42%.
The three major indices on Wall Street slipped on Tuesday, dragged down in particular by bank shares after Moody's slashed its rating of 10 midsized lenders. The ratings agency highlighted concerns over sluggish deposits, elevated funding costs and risks to commercial real estate assets.
The move fanned renewed fears over the health of the U.S. banking sector, which is attempting to regain its footing following the failure of three regional lenders earlier this year. Moody's also placed six banks on review, suggesting that further downgrades could also be coming.
2. Amazon in talks to become anchor investor in Arm prior to IPO — Reuters
Amazon (NASDAQ:AMZN) is in negotiations over joining a number of other technology firms as an anchor investor in Softbank-owned chip designer Arm's planned initial public offering, according to a Reuters report that cited people familiar with the situation.
The e-commerce giant would be one of about 10
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