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Exchange-Traded Funds, Equity Futures Higher Pre-Bell Amid S&P 500, Nasdaq Rally, Middle East Peace Optimism

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.7%, and the actively traded Invesco QQQ Trust (QQQ) was 1.7% higher in Wednesday's premarket activity amid all-time highs achieved by the S&P 500 and the Nasdaq along with continued optimism for an end to the Middle East conflict.

US stock futures were higher, with S&P 500 Index futures up 0.3%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 0.7% before the start of regular trading.

The Richmond Federal Reserve's manufacturing and business conditions readings for May are due to be released at 10 am ET, followed by the Dallas Fed's non-manufacturing survey for May at 10:30 am ET.

Mortgage applications fell by 8.5% in the week ended May 22 as a sharp increase in mortgage rates pushed down refinancing activity and new home applications, according to Mortgage Bankers Association data released Wednesday.

In premarket activity, bitcoin was down by 0.1%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.2% higher, Ether ETF (EETH) advanced 2.8%, and Bitcoin & Ether Market Cap Weight ETF (BETH) increased by 0.2%.

Power Play:

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced 1.5%, while the Vanguard Industrials Index Fund (VIS) gained 1.7%, and the iShares US Industrials ETF (IYJ) rose 1.3%.

Dycom Industries (DY) stock was up more than 23% before the opening bell after the company reported higher fiscal Q1 adjusted net income and contract revenue.

Winners and Losers:

Financial

The State Street Financial Select Sector SPDR ETF (XLF) dropped 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.3%, while Direxion Daily Financial Bear 3X Shares (FAZ), was 0.2% higher.

Qfin (QFIN) stock was up more than 7% even after the company posted lower Q1 non-GAAP net income and net revenue.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 1.4% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) dropped by 1.4%. The iShares US Consumer Staples ETF (IYK) retreated by 1.6%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) increased by 0.2%. The VanEck Retail ETF (RTH) was 1.2% lower, while the State Street SPDR S&P Retail ETF (XRT) was 0.5% higher.

PDD Holdings (PDD) shares were down more than 7% after the company posted Q1 non-GAAP earnings and revenue that missed analysts' estimates, with non-GAAP EPS declining year over year.

Technology

The State Street Technology Select Sector SPDR ETF (XLK) increased by 2.6%, and the iShares US Technology ETF (IYW) was 2.3% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 2.4%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) gained by 4.7%, while the iShares Semiconductor ETF (SOXX) rose by 6.1%.

Micron Technology (MU) shares were up more than 7%, extending gains after the company's market capitalization eclipsed $1 trillion for the first time on Tuesday.

Energy

The iShares US Energy ETF (IYE) was 2.5% lower, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 2.7%.

TotalEnergies (TTE) is facing a dispute with Mozambique over about $2 billion in costs tied to delays at its liquefied natural gas project in the country, Bloomberg reported, citing an unnamed person familiar with the matter. Shares of TotalEnergies were down more than 2% pre-bell.

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.9%, the Vanguard Health Care Index Fund (VHT) was up 0.7%, while the iShares US Healthcare ETF (IYH) lost by 0.7%. The iShares Biotechnology ETF (IBB) was 0.4% higher.

Guardant Health (GH) shares were up more than 5% after the company said its Shield blood test has been included in the American Cancer Society's updated Colorectal Cancer Screening guidelines.

Commodities

Front-month US West Texas Intermediate crude oil fell by 5.6% to $88.54 per barrel on the New York Mercantile Exchange. Natural gas was up 1.8% at $2.95 per 1 million British Thermal Units. The United States Oil Fund (USO) retreated by 2.7%, while the United States Natural Gas Fund (UNG) was 0.3% lower.

Gold futures for August retreated by 1.6% to $4,461.50 an ounce on the Comex. Silver futures fell by 2.9% to $74.35 an ounce. SPDR Gold Shares (GLD) was up by 0.04%, and the iShares Silver Trust (SLV) rose by 2%.

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Commodities

Refiners Slide as US-Iran Peace Hopes Pressure Crack Spreads, TPH Energy Says

Refining equities and product crack spreads declined last week as reports of progress in US-Iran peace negotiations pressured margins and softened sector sentiment, TPH Energy strategists said in a note on Tuesday.Matthew Blair, analyst at TPH Energy, said the refining group fell 1.3%, underperforming the S&P 500's 0.9% gain, with high-beta names leading losses.PBF Energy (PBF) dropped 4.9%, while Phillips 66 (PSX) outperformed the group with a 1.6% rise, making it the lone notable gainer among diversified refiners.TPH said the decline was driven by a sharp compression in refined product cracks. US gasoline cracks fell $12 to $25 per barrel, while US diesel cracks declined $7 to $45/bbl.Regional softness was most pronounced in the Midwest, Midcontinent and Rockies, TPH analysts said, reflecting broad-based margin pressure.International cracks were mixed. Northwest Europe gasoline and diesel eased by $1 and $3/bbl, respectively, while Singapore markets moved against the trend, with gasoline up $3/bbl and diesel rising $5/bbl.Forward curves also reflected the softer tone. The 2026 gasoline strip moved $1 lower, while diesel was unchanged.On the crude side, the Brent-WTI spread narrowed to $3/bbl from $5 previously, reducing a key advantage for US refiners that benefit from discounted domestic crude.Blair said grades, including Mars, Louisiana Light Sweet and Bakken crude strengthened, while Western Canadian Select at Hardisty, Mexico's Maya crude and Alaska North Slope held largely steady.Macro and industry developments added to the mixed backdrop. US regular gasoline prices eased 5 cents to $4.45 per gallon. India raised retail gasoline prices in response to war-related supply dynamics involving Iran.Kuwait's refinery throughput has reportedly fallen by half since the Middle East conflict began, while US jet fuel production has climbed above 2 million barrels per day in recent weeks.On corporate activity, Delek US Holdings (DK) disclosed a $100 million share repurchase authorization from REH. However, despite the recent pullback in refining equities, TPH said most refiners continue to trade above their three-year average forward EBITDA valuation multiples, except for Phillips 66 and Valero Energy (VLO).

$DK$PBF$PSX$VLO
Commodities

US Natural Gas Update: Futures Prices Soften in Choppy Trade

US natural gas futures extended losses in after-hours trade on Tuesday, though price action in the expiring June contract remained volatile as focus shifted toward July and the next phase of weather-driven demand.The front-month Henry Hub contract slipped 0.58% to $2.89 per million British thermal units, while the continuous contract fell 0.40% to $3.009/MMBtu.The June contract, which expires Wednesday, traded as low as $2.878/MMBtu, below Friday's settlement of $2.907, and reached an intraday high of $2.989/MMBtu.Weather models turned cooler over the weekend, weighing on sentiment. The overall Lower 48 forecast cooled by 6.7 degrees Fahrenheit, according to Aegis Hedging. The firm noted, however, that the cooler revisions were concentrated in the one- to two-week outlook, while temperatures at or above seasonal norms are still expected through mid-June."The setup is still defined by a familiar late spring tension, where mild stretches keep balances comfortable, but any meaningful heat building across the South and East can quickly lift power burn and improve sentiment at the front of the curve," Gelber & Associates said in a Tuesday note.Lower-48 gas demand was estimated at 66.6 billion cubic feet per day on Tuesday, down 2.5 Bcf/d from Friday but 6.8% higher than a year earlier, according to BNEF.Aegis Hedging said strengthening power-sector demand continued to underpin the market. Power demand rebounded by nearly 6 Bcf/d over the weekend to 36.1 Bcf/d, the firm said. Celsius Energy estimated Monday power burn at 30.8 Bcf, up 0.3 Bcf day-on-day and 2.9 Bcf above year-ago levels.The seven-day average for May 19-25 stood at 32.3 Bcf/d, up 3.6 Bcf/d from the same period last year.On the supply side, Lower-48 dry gas production rose to 110.6 Bcf/d on Tuesday, up 500 million cubic feet per day from Friday and 3.1% above year-earlier levels, according to BNEF.Barchart said some short covering emerged in natural gas futures after stronger LNG export demand pointed to tighter domestic balances. Gas flows to US LNG export terminals rose to 18.4 Bcf/d on Tuesday, up 8.8% week-over-week, according to BNEF data.

Commodities

Gujarat Gas Q1 2026 Volumes Fall Amid Weaker Industrial Demand; CNG Sales Hit Record High

Gujarat Gas reported Q1 2026 earnings on Tuesday, with total volumes of 8.88 million metric standard cubic meters per day in Q1 2026, down from 10.98 mmscmd reported in the same period last year.Total Piped Natural Gas volumes stood at 5.55 mmscmd.Industrial PNG volumes were also down to 4.71 mmscmd from 7.25 mmscmd in Q1 2025.Domestic PNG volumes edged up to 0.69 mmscmd, compared with 0.62 mmscmd recorded a year ago.Commercial PNG volumes largely held steady, inching up to 0.14 mmscmd from 0.13 mmscmd a year ago.Compressed Natural Gas volumes rose in the quarter to 3.33 mmscmd from 2.98 mmscmd in the same period a year earlier.Gujarat Gas reported the highest-ever CNG volumes of 3.33 mmscmd in Q1 2026, marking a 12% increase compared with Q1 2025 on the back of investments in CNG station infrastructure.