Wall Street Pauses as Earnings Season Heats Up

U.S. stock futures were mixed on Wednesday as investors braced for a wave of corporate earnings that could set the tone for markets in the weeks ahead. Futures tied to the Dow Jones Industrial Average and Nasdaq 100 hovered near flat, while S&P 500 contracts edged slightly higher.

The cautious mood followed a record-setting session for the Dow, which closed at an all-time high above 47,000 on Tuesday, buoyed by strong results from blue-chip names like Coca-Cola. However, sentiment was tempered after Netflix shares tumbled more than 6% in after-hours trading on weaker-than-expected quarterly results.

All eyes are now on Tesla, IBM, and other major companies set to report later today. Tesla’s earnings, in particular, are expected to be a key test for the so-called “Magnificent Seven” tech giants that have powered much of this year’s rally.

Meanwhile, bond markets remained steady, with the 10-year Treasury yield holding just under 4%. Investors are also watching closely for signs of the Federal Reserve’s next move, with markets pricing in a high probability of a rate cut at the upcoming October meeting.

With earnings season in full swing, Wall Street is entering a critical stretch that could determine whether the recent rally has staying power—or if volatility will return.