Stock market today: Dow, S&P 500, Nasdaq futures rise in countdown to Nvidia earnings
Quick Take
Futures for Dow, S&P 500, and Nasdaq rise ahead of Nvidia's earnings report.
Key Points
- Market anticipates Nvidia's earnings impact.
- Investors remain optimistic about tech stocks.
- Positive sentiment boosts major indices.
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~3 min readUpdated 2 min read
US stock futures climbed on Wednesday as Wall Street awaited Nvidia (NVDA) earnings, looking for a strong signal on AI demand to provide some relief from ongoing inflation concerns.
S&P 500 futures (ES=F) moved up 0.4%, while those on the Nasdaq 100 (NQ=F) jumped 0.7%. Contracts on the Dow Jones Industrial Average (YM=F) , which includes fewer tech stocks, edged up 0.2%. On Tuesday, stocks declined as techs pulled back and Treasury yields surged.
CME - Delayed Quote USD
7,406.00 +28.00 (+0.38%)
As of 6:41:00 AM EDT. Market Open.
ES=F YM=F NQ=F
Investors are counting down to the release of quarterly results from Nvidia, a catalyst for stocks more broadly in the past. While shares in the world's most valuable company have continued to rise this year, chipmaker rivals are closing in. Markets are pricing in a move of about 5.5% for Nvidia shares in either direction following the results, per Bloomberg.
Investors are looking to the results to gauge whether AI demand will continue to boom, given the chipmaker is a linchpin of the industry. The focus is on clues to whether Big Tech is still spending massively on AI buildouts .
Concerns that sticky inflation will force the Federal Reserve to hike interest rates have dampened interest in growth stocks, including AI, as US bond yields surged to levels not seen in almost two decades. Minutes of the Fed’s April meeting set for release Wednesday will reveal the depth of the differences among policymakers on the path of rates.
The Iran war — a major driver of rising prices — continues with no end in sight. President Trump threatened to attack the Middle Eastern country in the coming days if a peace deal isn’t reached soon and again asserted the war with Iran will end "very quickly".
Elsewhere on the earnings front, Target’s (TGT) results highlight a flurry of reports from retailers on Wednesday, watched for signs of stress as energy price hikes strain wallets.
LIVE 1 update
Global long bond yields hit highest in almost two decades
The selloff in longer-maturity government bonds has pushed up yields to levels last seen during the global financial crisis, and market participants are warning the move has room to run.
From Bloomberg:
A surge in global inflation expectations has brought the average yield on sovereign debt due in a decade or more to the highest since July 2008, a Bloomberg gauge shows. It comes as the war in Iran chokes off the vital Strait of Hormuz waterway, sending Brent crude above $110 a barrel.
Global long-dated bonds have been under pressure on concern the jump in energy costs will feed into everything from plastic bottles for soda to gasoline for tractors needed to harvest crops.
Add in worries over government spending in Japan, the UK and the US, as well as an artificial intelligence boom supporting growth in the world’s biggest economy, and investors have been seeking greater compensation to own longer-maturity debt.
“We’re seeing a broader repricing of duration driven by fiscal realities, persistent inflation risks and some political uncertainty, as well as a more demanding investor base,” said Patrick Coffey, head of a research group at Barclays Plc in London. “It’s hard to point to a near-term catalyst outside of the reopening of the Strait of Hormuz that could fully reverse the current selloff.”
— Originally published at finance.yahoo.com
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