Category: Market Summary

U.S. equity futures traded lower on Thursday morning, suggesting Wall Street could retreat after the strong gains recorded in the previous session.

Markets came under renewed pressure as crude oil prices rebounded sharply and Treasury yields moved higher once again.

U.S. oil futures climbed more than 2%, pushing back above US$100 per barrel as investors continued to track negotiations tied to a possible U.S.-Iran peace agreement.

Treasury yields also recovered after Wednesday’s steep declines, although the benchmark 10-year yield remains below the one-year peak reached earlier in the week.

Nvidia Pulls Back Despite Strong Earnings

Shares of NVIDIA (NASDAQ:NVDA) slipped 0.7% in premarket trading despite the company delivering quarterly earnings above expectations.

Investors appeared increasingly focused on whether Nvidia can maintain its exceptional growth trajectory.

“The chip giant is starting to sound like a broken record, playing the same message over and over again,” said Dan Coatsworth, head of markets at AJ Bell. “It effectively says AI demand is strong, lots of customers are queuing up for its chips, and there is still much more to go for.”

“The market’s attention is now focused on how long Nvidia can sustain this momentum,” he added. “Even the fastest or strongest athletes run out of steam at some point, and investors are starting to worry that Nvidia cannot keep up its current pace.”

Walmart Weighs on Sentiment

Shares of Walmart (NYSE:WMT) dropped 2.8% in premarket trading after the retailer issued guidance that disappointed investors.

Wednesday Rally Fueled by Falling Oil and Yields

Wall Street rallied strongly on Wednesday following several weaker sessions.

The Nasdaq climbed 1.5% to 26,270.36, while the Dow Jones Industrial Average gained 1.3% to 50,009.35. The S&P 500 advanced 1.1% to 7,432.97.

The rebound was largely supported by falling Treasury yields and a sharp retreat in crude oil prices.

Oil Falls After Trump Comments on Iran

The 10-year Treasury yield dropped sharply from one-year highs as oil prices slid more than 5% amid optimism that the U.S.-Iran conflict could move toward resolution.

Crude futures fell below US$100 per barrel after President Donald Trump said the conflict was in the “final stages.”

Trump nevertheless maintained a tougher tone, warning reporters: “We’ll either have a deal or we’re going to do some things that are a little bit nasty.”

Airlines and Chip Stocks Lead Gains

Airline stocks were among the strongest performers as lower oil prices improved the outlook for fuel costs, with the NYSE Arca Airline Index jumping 8.1%.

Semiconductor stocks also rallied sharply, lifting the Philadelphia Semiconductor Index by 4.5%.

Housing stocks advanced strongly as well, with the Philadelphia Housing Sector Index gaining 3.8%.

Gold, banking and computer hardware shares also moved higher, while oil producers declined sharply alongside crude prices.

U.S. stock futures edged lower on Thursday as investors weighed another blockbuster earnings report from artificial intelligence leader Nvidia (NASDAQ:NVDA) while continuing to track diplomatic developments surrounding the conflict between the United States and Iran.

By 03:32 ET, Dow futures had slipped 112 points, or 0.2%, while S&P 500 futures fell 19 points and Nasdaq 100 futures dropped 126 points. The weaker tone followed a rebound on Wall Street in the previous session, when equities recovered after three straight days of declines amid growing optimism over a potential peace agreement between Washington and Tehran. Softer oil prices also helped ease pressure on U.S. Treasury yields and improved overall market sentiment.

Minutes from the Federal Reserve’s April meeting showed policymakers remain concerned about inflation risks. Strategists at BCA Research noted that most officials believe “further policy tightening could become necessary if inflation continues running persistently above 2%.” Despite these concerns, investor focus has increasingly shifted back toward the momentum surrounding artificial intelligence and technology growth following Nvidia’s latest results.

Nvidia delivers another blowout quarter

Nvidia once again underlined its dominance in the AI sector after reporting quarterly revenue of US$81.6 billion, up 85% from a year earlier and ahead of analyst forecasts. Net income rose to US$58.3 billion, more than tripling year-on-year and comfortably surpassing Wall Street expectations.

Chief executive Jensen Huang pointed to what he described as the arrival of the “age of agentic AI,” saying demand had become “parabolic” as companies increasingly adopt systems capable of independently performing tasks on behalf of users.

Wedbush analysts said Nvidia continues to control the semiconductor landscape, writing that the company remains the central force in the market while “everyone else is effectively paying rent as governments and corporations queue up for Nvidia chips.”

Despite the strong numbers, Nvidia shares traded little changed in premarket activity after analysts cited by Reuters observed that the company’s guidance excluded China-related revenue and only modestly exceeded expectations. Market watchers also noted that Nvidia faces extraordinarily high expectations, meaning even exceptional results may struggle to fully impress investors.

SpaceX moves toward historic stock market debut

Outside the semiconductor industry, Elon Musk’s SpaceX drew major attention after filing paperwork for what could become the largest IPO ever recorded. The aerospace company is reportedly targeting a fundraising of at least US$80 billion, surpassing the record set by Saudi Aramco’s market debut in 2019.

The filing offered fresh insight into SpaceX’s operations and financial structure. Alongside its rocket launch activities, the company operates a significant satellite internet business. Its launch division generated US$4.1 billion in revenue last year but remained unprofitable, while the satellite business produced US$11.4 billion in revenue.

Total expenses reached US$20.7 billion, largely driven by heavy investment from xAI, Musk’s artificial intelligence startup focused on expanding data centre infrastructure. SpaceX and xAI merged in February, and some analysts believe Tesla could eventually become part of the broader group as well.

OpenAI reportedly preparing IPO plans

The Wall Street Journal reported that OpenAI may also be preparing for a public listing as early as September. Sources familiar with the matter said the ChatGPT developer has been working alongside advisers including Goldman Sachs and Morgan Stanley on IPO preparations.

A major hurdle was cleared earlier this week when OpenAI won its legal dispute against Elon Musk, although Musk has since confirmed he intends to appeal the ruling.

Markets watch closely for progress in U.S.-Iran negotiations

Beyond technology stocks, investor sentiment was also supported by hopes of a possible agreement to end the conflict between the United States and Iran, which has now continued for more than two months. President Donald Trump said Washington was in the “final stages” of negotiating a draft peace agreement, although he also warned that “we’re going to do some things that are a little bit nasty” if talks collapse.

Iran said it was reviewing the latest U.S. proposals aimed at ending the conflict. Investors remain particularly focused on any developments that could reopen the Strait of Hormuz, the critical shipping route off Iran’s southern coastline that has been largely closed to tanker traffic since the conflict began in late February. Shipping data cited by media reports earlier this week suggested some vessels have recently resumed transit through the waterway.

Brent crude futures were last trading modestly higher at US$106.34 a barrel after previously retreating from around US$110 following Trump’s remarks regarding a possible agreement.

U.S. stock futures traded higher on Wednesday, signaling a potential rebound for Wall Street after broad declines in the previous session.

Investor sentiment improved as Treasury yields eased from recent highs and crude oil prices moved sharply lower.

Treasury Yields and Oil Prices Decline

The benchmark 10-year Treasury yield retreated after climbing to its highest level in more than a year, while U.S. crude oil futures dropped over 3%.

Oil prices extended losses from Tuesday after President Donald Trump said the conflict involving Iran would end “very quickly.”

“We’re going to end that war very quickly,” Trump said during the annual congressional picnic at the White House on Tuesday. “They want to make a deal so badly.”

“It’s going to happen, and it’s going to happen fast. And you’re going to see oil prices plummet,” the president added.

Even with improving market sentiment, trading volumes could remain muted ahead of Nvidia’s (NASDAQ:NVDA) quarterly earnings report due after the market close.

Nvidia Results and Fed Minutes Awaited

As a key player in the artificial intelligence industry, Nvidia’s earnings and outlook are expected to influence broader market direction.

Market participants are also watching for the release of minutes from the Federal Reserve’s latest policy meeting later in the day.

The minutes from the Fed’s April meeting, where policymakers voted to keep interest rates unchanged after a notably divided debate, may provide additional insight into the future path of monetary policy.

U.S. Stocks Ended Lower on Tuesday

Major U.S. stock indexes finished Tuesday’s session in negative territory after an afternoon recovery attempt faded before the close.

The Nasdaq declined 220.02 points, or 0.8%, to 25,870.71. The S&P 500 lost 49.44 points, or 0.7%, ending at 7,353.61, while the Dow Jones Industrial Average fell 322.24 points, or 0.7%, to 49,363.88.

The selloff coincided with a continued surge in Treasury yields, with the 10-year note reaching its highest level since January 2025.

Inflation and Oil Concerns Continue to Weigh

Persistently elevated oil prices and inflation concerns have continued to pressure bond markets.

Although crude futures pulled back on Wednesday, prices remained above the $100-per-barrel mark amid ongoing geopolitical tensions in the Middle East.

While Trump said he halted a planned strike on Iran following requests from Gulf leaders, investors remain cautious about the possibility of renewed escalation.

The sustained rise in oil prices has increased speculation that the Federal Reserve may be forced to raise interest rates later this year to contain inflationary pressures.

According to CME Group’s FedWatch Tool, markets are currently pricing in a 41.9% chance that rates will end the year a quarter-point higher following the Fed’s final policy meeting.

“While the Nasdaq remains near highs and the broader AI trade is still intact, recent sessions have seen some profit-taking in semiconductors and mega-cap tech as yields rise and positioning looks increasingly stretched,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, “The market is not abandoning the earnings and AI story but the combination of higher oil, higher yields and extremely strong positioning is making it harder for the sector to continue its near-vertical ascent without pauses or pullbacks.”

Pending Home Sales Exceed Forecasts

Economic data released Tuesday showed pending home sales in the U.S. rose more than expected in April.

The National Association of Realtors said its pending home sales index increased 1.4% to 74.8 in April after rising by an upwardly revised 1.7% in March.

Economists had forecast a 0.9% increase following the previously reported 1.5% gain in the prior month.

Gold and Airline Stocks Under Pressure

Gold mining shares fell sharply as gold prices weakened significantly. The NYSE Arca Gold Bugs Index dropped 3.7%, marking its lowest close in more than a month.

Airline stocks also posted steep losses, with the NYSE Arca Airline Index sliding 3.4%.

Housing, brokerage, and computer hardware shares also moved lower, while pharmaceutical, healthcare, and natural gas stocks outperformed the broader market.

U.S. equity futures traded little changed on Wednesday as investors balanced mounting inflation concerns tied to the Iran conflict with anticipation surrounding quarterly results from NVIDIA Corporation (NASDAQ:NVDA), which are expected to offer fresh signals on the health of the artificial intelligence sector.

At 03:32 ET, Dow Jones futures were up 27 points, or 0.1%, while S&P 500 futures climbed 0.2% and Nasdaq 100 futures advanced 0.4%. Wall Street’s major indices had closed lower on Tuesday as a sharp rise in government bond yields fuelled concerns that the Iran war could reignite inflation globally and pressure central banks into further rate increases. The 30-year U.S. Treasury yield climbed to its highest level since the global financial crisis nearly twenty years ago.

Trump says Iran conflict may end “very quickly”

Despite ongoing geopolitical tensions, investors continue to hope that diplomatic negotiations between Washington and Tehran could eventually bring the conflict to an end after more than two months of fighting.

U.S. President Donald Trump told lawmakers on Tuesday that the Iran war could end “very quickly.” Earlier this week, Trump said he had delayed additional planned strikes against Iran following requests from three Gulf nations.

Vice President JD Vance also expressed optimism, saying Tehran appeared willing to pursue a deal.

Meanwhile, shipping data cited by Reuters showed that two Chinese-flagged oil supertankers, along with the South Korean tanker Universal Winner, exited the Strait of Hormuz on Wednesday, raising hopes that traffic through the strategically important waterway may gradually resume more normally. Oil prices moved lower on expectations that supply disruptions could ease, although Brent crude remains significantly above levels seen before the outbreak of the conflict.

Nvidia earnings expected to test AI market optimism

Away from geopolitical developments, market attention remains firmly fixed on Nvidia’s quarterly earnings release scheduled after the close of Wall Street trading.

Nvidia has become one of the most closely watched companies in global markets due to its central role in powering artificial intelligence infrastructure. Major technology firms continue committing billions of dollars toward AI-related data centre expansion, leaving expectations for Nvidia’s performance exceptionally high.

Analysts at Vital Knowledge said:

“[S]entiment is bullish around Nvidia given continued strength in overall data center capex spending, the dominance of its core data center GPU franchise, the company’s growing networking footprint, and recent product launches (Groq and Vera) aimed at fending off competition,”.

Still, some concerns remain around increasing competition from chips developed by Google LLC and Amazon.com, Inc., as well as questions over how sustainable the current pace of AI spending will prove to be amid rising memory chip costs.

Markets monitor possible SpaceX IPO filing

Investor attention is also turning toward a potentially historic stock market listing for SpaceX, the aerospace group founded by Elon Musk.

According to reports, SpaceX is considering a June 12 market debut in what could become the largest IPO ever completed. Analysts at Vital Knowledge suggested the company’s prospectus could be released as soon as Wednesday, potentially giving investors deeper insight into SpaceX’s operations and ownership structure.

Federal Reserve minutes due later today

Later in the session, investors will also analyse minutes from the Federal Reserve’s April meeting, which may provide further clues about the policy challenges facing incoming Fed Chair nominee Kevin Warsh.

At that meeting, Federal Reserve officials left interest rates unchanged but expressed concern over the inflationary consequences of the Iran conflict. Policymakers were also divided over whether to continue signalling possible future rate cuts.

Current Fed Chair Jerome Powell stated last month that he intends to remain on the Federal Reserve Board through early 2028, citing “my concern […] about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors.”