The S&P 500 tech sector is about to post its best 10-week gain ever in history, if the week ended now, according to BTIG. Tech stocks are up 44.6% over the recent stretch.

It's a troubling signal, however, given that the sector is pushing historical extremes even as it is flashing overbought and extended signals, BTIG pointed out. The S&P 500 tech sector closed Tuesday with an 82 Relative Strength Index (RSI) and 28% above its 200-day moving average. The pattern that has only occurred in 10 unique periods since 1990, most of which hasn't ended well.

"There were some positive outcomes (May '95 and July '97), but most of the other occurrences saw meaningful consolidations or drawdowns over the next 40 trading days," BTIG's Jonathan Krinsky wrote on Wednesday.

— Sarah Min

Service sector activity in the U.S. economy expanded at a slightly slower pace in May, the Institute for Supply Management reported Wednesday.

The ISM services index came in at 53.6, down 0.4 points from April and below the Dow Jones consensus for 53.9. The index measures the share of companies reporting growth during the period.

New orders slumped 7.1 points to 53.5 while business activity and production rose 2 points to 55.9 and the employment index increased 2.8 points, though was still in contraction territory at 48.0. The inventories gauged declined 1.7 points to 53.1.

— Jeff Cox

The Strait of Hormuz could reopen as soon as this month as the risk of oil inventory depletion puts pressure on U.S. officials, according to JPMorgan.

"The core assumption underpinning this framework is that the accelerating pace of oil inventory depletion will ultimately force the reopening of the Strait of Hormuz, one way or another, with the team envisioning the Strait reopening in June," JPMorgan analysts said Wednesday in a note to clients.

The status of the sea lane, which is used for the transport of roughly 20% of global oil exports, has been in flux since the start of the Iran war in late February.

Iran has sought to solidify its control over the waterway as the conflict has raged, deploying naval mines to effectively block ships from traveling through it. On Tuesday, Secretary of State Marco Rubio said Iran had placed mines in "large segments" of the Strait of Hormuz, suggesting the blockage of the passageway is more widespread than previously acknowledged.

— Liz Napolitano

The Dow Jones Industrial Average pulled back 236 points, or 0.4%. The S&P 500 traded just below the flatline, and the Nasdaq eked out a small gain.

— Fred Imbert

Shares of Palo Alto Networks reversed course on Wednesday, falling more than 3% in the premarket after earlier rising as much as 12%.

The reversal comes after the company's latest quarterly results exceeded analysts' expectations.

— Sean Conlon and Samantha Subin

Shares in KKR, Blackstone and other sector peers tumbled in premarket trading on Wednesday as fears over private market valuations returned to the spotlight after Switzerland's Partners Group moved to restrict investor withdrawals from one of its funds. Read more.

— Hugh Leask

Private hiring expanded at a brisk pace in May, providing further indication of a stable labor market, ADP reported Wednesday.

The payrolls processing firm said companies added 122,000 workers for the month, up from 105,000 in April and better than the Dow Jones consensus estimate for 110,000. May marked the strongest month since January 2025. April's total was revised down by 4,000. Read more.

— Jeff Cox

Check out the companies making the biggest moves premarket:

• Private equity firms — The group fell after Bloomberg News reported Partners Group, a Swiss-based private equity firm, capped withdrawals from one of its private equity funds. Blackstone fell 6%, while KKR tumbled more than 5.5%. Blue Owl Capital was off nearly 4%.
• Palo Alto Networks — The cybersecurity stock fell 2%. Palo Alto posted stronger-than-expected revenue guidance for its current quarter and lifted its full-year revenue guidance. The company also posted fiscal third-quarter adjusted earnings of 85 cents per share on $3 billion in revenue, beating the earnings of 80 cents and $2.94 billion in revenue that analysts had expected, per LSEG.
• GitLab — Shares lost nearly 4% after the software company guided for adjusted earnings per share of 17 cents to 18 cents, while analysts polled by LSEG had penciled in 19 cents per share. GitLab also said that it would reduce its full-time workforce by approximately 14%, or 350 team members, and exit 22 countries. The company also expects to incur between $30 million and $35 million in pretax restructuring charges.

Read the full list here.

— Davis Giangiulio

Shares of Macy's rose 2% in premarket trading after the department store reported its strongest first-quarter comparable sales performance in four years.

Macy's also raised its full-year guidance. It now anticipates 2026 net sales to come in between $21.5 billion and $21.75 billion, versus the LSEG consensus estimate of $21.59 billion, It expects earnings will be between $2 and $2.20 per share , up from a previous range of between $1.90 and $2.10.

The company's fiscal first-quarter revenue of $4.68 billion topped the $4.61 billion expected from analysts, while its adjusted earnings of 13 cents per share wasn't immediately comparable to estimates.

— Michelle Fox and Gabrielle Fonrouge

The Iranian regime has agreed not to have nuclear weapons, President Donald Trump told The New York Post's "Pod Force One" podcast — but he added that Tehran could still "change their mind."

"I did have to say we have to do something about Iran, because regardless of how well we're doing [economically] we can't let them have a nuclear weapon," he said in the interview, which was published Wednesday. "They've already agreed they're not going to have a nuclear weapon."

Read more here.

— Chloe Taylor

GameStop jumped 9% in the premarket after the video game retailer posted first-quarter results. The company earned an adjusted 30 cents per share, while revenue grew by 14% to $835.3 million. The board also approved a $2 billion share repurchase program.

— Fred Imbert

Asia-Pacific markets rose Wednesday, with Japan's Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.

Japan's Nikkei 225 ended Wednesday's trading session 2.50% higher at 68,402.13, while the Topix added 1.83% at 3,996.20.

Mainland China's CSI 300 rose 0.49% to 4,938.81, while Hong Kong's Hang Seng was down1.62% in its last hour of trade.

Australia's S&P/ASX 200 rose 0.70% to 8,785.70. The country reported GDP growth of 2.5% year on year for the first three months this year, missing economists' expectations of 2.6%. Growth was pressured by weaker household spending, lower government consumption, as well as impact from severe weather disruption to the mining industry.

India's Nifty 50 fell 0.83%, while the BSE Sensex was down 0.90% as of 3:40 a.m. ET.

South Korea's markets were closed for a holiday.

— Justina Lee

Asia-Pacific markets opened broadly higher Wednesday, with Japan's Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.

Japan's Nikkei 225 extended early gains to rise 2.14%, while the Topix added 1.52%.

Mainland China's CSI 300 was marginally higher, while Hong Kong's Hang Seng slid 0.98%

Australia's S&P/ASX 200 rose 0.36% as the country reported GDP growth of 2.5% year on year for the first three months this year, missing economists' expectations of 2.6%. Growth was pressured by weaker household spending, lower government consumption, as well as impact from severe weather disruption to the mining industry.

South Korea's markets were closed for a holiday.

— Justina Lee

Seven of the 11 GICS sectors rose on Tuesday.

Utilities stocks were the day's leaders, gaining 1.93%. The cohort was followed by the materials and industrials sectors, which respectively added 1.16% and 1%.

On the other hand, the lagging sector of the day was communication services, down 2.61%. Health care, consumer discretionary and consumer staples also ended the day lower, respectively sliding 0.99%, 0.71% and 0.10%.

— Lisa Kailai Han

These are the stocks moving the most in extended-hours trading:

• Palo Alto Networks — The cybersecurity stock erased earlier gains and fell almost 3%. Palo Alto posted stronger-than-expected revenue guidance for its current quarter and lifted its full-year revenue guidance. The company also reported fiscal third-quarter adjusted earnings of 85 cents per share on $3 billion in revenue, beating the earnings of 80 cents and $2.94 billion in revenue that analysts had expected, per LSEG.
• GitLab — Shares tumbled 5% after the software company guided for adjusted earnings in its current quarter of 17 cents to 18 cents, while analysts polled by LSEG had penciled in 19 cents. GitLab also said that it would reduce its full-time workforce by approximately 14%, or 350 team members and exit 22 countries. The company also expects to incur between $30 million and $35 million in pretax restructuring charges.
• Ulta Beauty — The beauty stock added 1% after lifting the range for its full-year earnings guidance. Ulta reported first-quarter earnings of $7.74 per share, beating the $6.86 a shareanalysts were expecting, per LSEG. Its $3.16 billion revenue also exceeded the $3.10 billion estimate.

— Lisa Kailai Han

Stock futures traded near flat on Tuesday night.

Shortly after 6 p.m. ET, futures tied to all three major indexes were trading around the flatline.

— Lisa Kailai Han