Category: Market Summary

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.”

U.S. equity futures move lower ahead of Nvidia earnings

U.S. stock futures traded lower early Tuesday, suggesting Wall Street may open under pressure as investors remain cautious following Monday’s uneven session.

Technology shares are expected to remain in focus as concerns grow that valuations across the sector have become stretched after the market’s recent surge to record highs.

Traders are now turning their attention toward Nvidia’s (NASDAQ:NVDA) quarterly earnings report due after Wednesday’s close, with markets closely watching for signals on artificial intelligence demand and future growth expectations.

Given Nvidia’s dominant position in the AI industry, the company’s results and outlook are expected to play a major role in shaping broader market sentiment.

Oil prices and bond yields continue to influence sentiment

Investors are also keeping a close eye on elevated oil prices and the recent rise in Treasury yields, although both eased modestly during Tuesday morning trading.

“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.”

Markets recover late after another volatile session

Following Friday’s sharp decline, U.S. stocks remained under pressure for much of Monday before staging a partial recovery late in the trading session.

The major indexes finished well above their intraday lows, with the Dow Jones Industrial Average managing to close in positive territory.

The Dow gained 159.95 points, or 0.3%, ending at 49,686.12. The S&P 500 slipped 5.45 points, or 0.1%, to close at 7,403.05, while the Nasdaq Composite dropped 134.41 points, or 0.5%, to 26,090.73.

Geopolitical tensions remain a key market risk

Early selling pressure on Wall Street was linked to persistent concerns over the conflict in the Middle East after President Donald Trump warned that for Iran the “clock is ticking.”

Posting on Truth Social, Trump said Iran “better get moving, FAST, or there won’t be anything left of them,” sparking renewed concerns that the United States could resume military operations.

Axios reported, citing two U.S. officials, that Trump is expected to meet with senior national security advisers on Tuesday in the Situation Room to review military options.

The conflict between the United States and Iran has effectively disrupted shipping through the Strait of Hormuz, a critical route for global oil flows, intensifying concerns about inflation and interest rate expectations.

Treasury yields surged on Friday as traders increasingly speculated that the Federal Reserve’s next move could potentially involve raising rates rather than cutting them.

Oil prices and Treasury yields continued climbing through much of Monday’s session, adding to negative sentiment across equity markets.

However, stocks trimmed losses later in the day after Trump said he had chosen to delay military action against Iran following appeals from Middle Eastern leaders.

Trump said he instructed the military to remain “prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached.”

Semiconductor shares lead declines while energy stocks outperform

Chipmakers recorded some of the steepest losses during Monday’s session, dragging the Philadelphia Semiconductor Index down 2.5%.

Computer hardware companies also faced heavy selling pressure, with the NYSE Arca Computer Hardware Index falling 2.2%.

Meanwhile, oil service companies benefited from higher crude prices, helping lift the Philadelphia Oil Service Index by 3.4%.

Oil producers, telecom companies and commercial real estate stocks also posted gains, helping reduce the broader market’s overall losses.

U.S. futures steady as investors await major tech earnings

U.S. equity futures traded close to unchanged early Tuesday as markets balanced renewed hopes for a diplomatic breakthrough between the United States and Iran against anticipation ahead of a critical week for technology earnings.

As of 03:30 ET, Dow Jones futures were little changed, S&P 500 futures slipped 0.1%, and Nasdaq 100 futures eased 0.2%.

Investors are preparing for earnings from Home Depot (NYSE:HD), the first in a series of reports from major consumer-focused retailers due in the coming days. However, the spotlight remains firmly on semiconductor heavyweight Nvidia (NASDAQ:NVDA), whose results are expected to provide a key gauge of the artificial intelligence-driven investment wave that has continued to underpin equity markets despite ongoing geopolitical tensions.

Wall Street closed Monday on a mixed note, with the Nasdaq Composite and S&P 500 both ending lower, while the Dow Jones Industrial Average gained 0.3%.

Technology stocks faced some profit-taking pressure, while higher Treasury yields and elevated oil prices also weighed on broader market sentiment.

Trump signals pause in military escalation with Iran

Investor confidence improved later in the session after comments from President Donald Trump suggested a possible easing of tensions in the Middle East.

Analysts at Deutsche Bank said Trump’s remarks on social media helped the S&P 500 recover most of its earlier losses.

Trump stated that he had halted plans for additional military strikes against Iran following requests from several Gulf leaders. He said that “serious negotiations are now taking place,” adding that, “in the opinion” of Gulf officials, a “Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond.”

The president also stressed that any agreement would mean “NO NUCLEAR WEAPONS FOR IRAN!” while warning that U.S. forces remain ready to launch a “full, large scale assault on Iran, on a moment’s notice” if talks fail.

“The news helped remove some of the risk premium that had built up over the course of yesterday,” Deutsche Bank analysts noted.

Iranian state media separately reported that Tehran had delivered a revised peace proposal to Washington that would include ending hostilities across all fronts, the withdrawal of U.S. forces from areas near Iran and compensation for damage caused by American and Israeli strikes.

Oil prices ease while inflation concerns persist

Brent crude futures, the global benchmark for oil prices, were last down 1.8% at $110.07 per barrel. Before the start of the joint U.S.-Israeli offensive against Iran in late February, Brent had been trading near $70 per barrel.

Markets remain concerned that prolonged disruption to energy supplies could reignite inflationary pressures globally and force central banks to maintain elevated interest rates for longer.

At the same time, softer oil prices helped stabilize bond markets following sharp sell-offs in recent sessions. Yields on benchmark 10-year U.S. Treasuries pulled back from their highest levels in more than a year, while two-year Treasury yields also edged lower.

Government bond yields across the eurozone, including Germany, France, Spain and Italy, also declined as demand for safer fixed-income assets improved.

“While near-term yield volatility may keep markets on edge, current attractive yields and growth risks point to an appealing risk-return profile for short- and medium-maturity quality bonds,” analysts at UBS Global Wealth Management said.

Google and Blackstone unveil AI cloud computing venture

Alphabet’s Google (NASDAQ:GOOG) and Blackstone (NYSE:BX) announced plans to establish a new artificial intelligence cloud company powered by Google-designed chips.

Blackstone will invest $5 billion and hold a majority ownership stake in the venture, according to a joint statement from the companies.

The project aims to bring 500 megawatts of computing capacity online by 2027, with ambitions to significantly scale operations over time.

The new venture is expected to compete with AI infrastructure providers such as CoreWeave while also strengthening Google’s push to commercialize its own AI chip technology, increasing competitive pressure on Nvidia.

Japanese economic growth beats expectations

Japan’s economy expanded faster than anticipated during the first quarter, supported by resilient private consumption and stronger exports.

Preliminary government data released Tuesday showed annualized gross domestic product growth of 2.1% for the January-to-March period, above market expectations of 1.7% and accelerating from a revised 0.8% increase in the previous quarter.

On a quarterly basis, GDP rose 0.5%, exceeding forecasts for 0.4% growth and improving from the prior quarter’s 0.2% gain.

Despite the stronger data, economists warned that the economic fallout from the Iran conflict could become more pronounced in the months ahead, particularly because of rising energy costs for Asian economies dependent on imported fuel.

“Japan’s economy approached the Iran war with solid momentum but we think that GDP growth will grind to a halt this quarter and next,” analysts at Capital Economics said.

“Looking ahead, the government’s decision to cap prices of petroleum products means that inflation will remain subdued for now. However, that’s unlikely to last as higher energy prices are lifting prices of imported products and will feed through to higher utility bills in due course.”