U.S. index futures dipped slightly in pre-market trading Wednesday after a strong rally in the previous session. Investors are awaiting the Fed minutes and upcoming inflation and bank earnings reports this week, while optimism grows about a soft Fed landing following robust jobs data.

At 5:28 AM ET, Dow Jones futures (DOWI:DJI) were down 58 points, or 0.14%. S&P 500 futures dropped 0.14%, and Nasdaq-100 futures fell 0.22%. The 10-year Treasury yield stood at 4.02%.

In the commodities market, oil prices rose, driven by Middle East tensions and China’s expected fiscal stimulus. Despite ceasefire talks between Hezbollah and Israel, markets remain cautious about a potential attack on Iran. In the U.S., crude oil inventories rose by 10.9 million barrels, while the EIA reduced its 2024 global oil demand growth forecast by 20,000 barrels per day, to 103.1 million bpd, due to industrial slowdowns.

The U.S. projects crude oil production growth of just 320,000 barrels per day in 2025, significantly below previous expectations. While production reaches 13.54 million bpd, the growth rate has dropped from 3.2% to 2.4%. A decline in operational rigs suggests producers prioritize shareholder returns over expansion.

West Texas Intermediate crude for November rose 0.87%, to $74.20 per barrel, while Brent for December rose 0.78%, to $77.78 per barrel.

On today’s U.S. economic calendar, at 8 AM, Atlanta Fed President Raphael Bostic will make welcoming remarks. At 9:15 AM, Dallas Fed President Lorie Logan speaks, followed by wholesale inventory data for August at 10:00 AM, expected at 0.2%. At 10:30 AM, Chicago Fed President Austan Goolsbee will deliver opening remarks, and at 12:30 PM, Federal Reserve Vice Chair Philip Jefferson will speak. The FOMC’s September meeting minutes will be released at 2:00 PM, with San Francisco Fed President Mary Daly speaking at 6:00 PM.

Asia-Pacific markets closed mixed, with China’s CSI 300 dropping 7.05% to 3,955.98 after 10 straight days of gains. The real estate and tourism sectors were the hardest hit. A lack of economic stimulus details disappointed investors, pressuring commodities and China-exposed stocks. China’s Ministry of Finance will hold a press conference on Saturday, October 12, amid market movements.

Hong Kong’s Hang Seng fell 1.7% in the final trading hour. Japan’s Nikkei 225 gained 0.87%, while Australia’s S&P/ASX 200 added 0.13%.

New Zealand’s central bank cut interest rates by 50 basis points, sending the New Zealand dollar lower and aligning the country with the global trend of monetary easing. The move aims to stabilize inflation, with more cuts expected in November.

India’s central bank decided to keep its key interest rate at 6.5%, with one member proposing a 25 basis point cut. The RBI acknowledged falling inflation in recent months but warned that September data may show a rebound due to seasonal factors and rising food prices.

In Japan, manufacturers showed increased confidence in October, according to a Reuters survey, though they remain cautious about China’s economic recovery. The October manufacturers’ sentiment index rose to plus 7, up from plus 4 in the previous month, reflecting improvements in sectors such as chemicals and food, but concerns about China’s economy persist.

Seven & i shares rose after Alimentation Couche-Tard raised its acquisition bid by over 20%, valuing the Japanese company at $47 billion. The new proposal pressures Seven & i to reconsider the offer despite its earlier rejection.

Hyundai Motor India set the price range for its IPO between 1,865 and 1,960 rupees per share. Qualified employees will receive a discount of 186 rupees per share. The $3 billion IPO, India’s largest, will be available to large investors on October 14, and to retail investors from October 15-17.

Japanese manufacturer Rigaku set a provisional price range of $8.48 (1,230 to 1,260 yen) for its IPO. At the top of this range, the company could raise up to $870 million, with a final decision on October 17. The listing is set for October 25.

The inclusion of South Korea’s sovereign bonds in the FTSE Russell index could strengthen the won and attract billions of dollars in investments. The government projects that this move will bring up to $59.7 billion (80 trillion won) into the bond market, boosting the economy and helping fund future social costs.

European markets are mixed, with modest performance on Wednesday following all major exchanges closing lower the previous day, reflecting Chinese volatility. Investors are awaiting Germany’s economic forecasts and the NATO defense ministers’ meeting.

Among individual stocks, Volvo Car (TG:A3LH5C) announced that Deputy CEO Bjorn Annwall will leave the company as part of a reorganization to streamline operations and boost efficiency. Daimler Truck (TG:DTG) reported an 11% drop in third-quarter sales, affected by Mercedes-Benz Trucks and its Asia operations. In Q3, Daimler delivered 114,917 trucks, down from the same quarter last year, though electric truck deliveries rose 36% in Q3, totaling 666 units.

On Tuesday, U.S. stock indices rose, led by the tech sector. The Dow gained 126.13 points or 0.3%, the S&P 500 climbed 0.97%, and the Nasdaq advanced 1.45%. Companies like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) posted gains, while PepsiCo (NASDAQ:PEP) beat earnings expectations. The U.S. trade deficit narrowed to $70.4 billion, the lowest in five months, from an upwardly revised $78.9 billion in July. Exports rose 2% to a record high of $271.8 billion, while imports fell 0.9% to $342.2 billion.

Airlines, energy companies, and Universal Studios began suspending operations in Florida as Hurricane Milton approaches. The hurricane, one of the most powerful on record, could cause significant damage and power outages, while flights faced delays and cancellations. Several airports, including Orlando and Tampa, were closed.

Federal Reserve Vice Chair Philip Jefferson stated that the 50-basis point rate cut was “timely” and aligned with the Fed’s mandates to control inflation and maximize employment. He emphasized that lower inflation allowed the Fed to focus on labor market stability, which remained below 4% during the rate hikes.

Susan Collins, President of the Federal Reserve Bank of Boston, noted that with weakening inflation, the Fed could implement more rate cuts. While monetary policy doesn’t follow a set path, adjustments will be made as the economy evolves. Collins highlighted the strength of the labor market and expects inflation to return to the 2% target.

In earnings reports, Helen of Troy  (NASDAQ:HELE) and Byrna Technologies  (NASDAQ:BYRN)are set to release numbers before the market opens. After the close, results are expected from AZZ Inc.  (NYSE:AZZ), Applied Blockchain  (NASDAQ:APLD), Bassett Furniture  (NASDAQ:BSET), E2Open  (NYSE:ETWO) and Richardson Electronics  (NASDAQ:RELL).