Stock Futures Edge Near Flatline as Skydance Media Nears Deal to Buy Paramount Global – Market Update and Analysis

New York City, New York – The U.S. stock market showed signs of stability on Wednesday morning after the S&P 500 closed above 5,500 for the first time, with futures for both the S&P 500 and Dow Jones Industrial Average slightly slipping. Paramount Global shares surged nearly 7% in extended trading following reports of a potential deal with Skydance Media to acquire National Amusements.

During the main trading session on Tuesday, the market index reached new heights, with the Nasdaq Composite advancing to a record close and the Dow rising as well. However, concerns are rising on Wall Street about the sustainability of the market’s narrow leadership and when the Federal Reserve might cut rates.

At a central bank forum, Fed Chair Jerome Powell mentioned progress in reducing inflation but stopped short of confirming any rate cuts. Scott Chronert, head of U.S. equity strategy at Citi Research, expressed concerns about the market’s growth expectations and possible pullbacks in the near future.

Looking ahead, new economic data is set for release, including ADP’s private payrolls data, weekly jobless claims, the U.S. trade deficit balance for May, and various PMI readings for June. The Federal Open Market Committee’s June meeting minutes are also on the agenda.

With the Fourth of July holiday approaching, the New York Stock Exchange will close early on Wednesday and remain closed on Thursday in observance of Independence Day. Investors will be monitoring market reactions to the latest economic data amid ongoing uncertainties and trends in the broader financial landscape.