US equities rise on Nvidia anticipation as oil retreats on Iran diplomacy signals

US equity markets posted modest gains on Wednesday as investors positioned themselves ahead of Nvidia’s quarterly earnings release, a critical gauge for artificial intelligence demand. The S&P 500 and Nasdaq Composite rose by 0.3% and 0.5% respectively, while the Dow Jones Industrial Average remained flat. Retailers Target and Lowe’s delivered strong first-quarter results, surpassing analyst expectations for revenue and earnings. In commodity markets, oil prices declined following comments from President Trump suggesting the conflict with Iran could conclude rapidly, despite counter-threats from Iran’s Islamic Revolutionary Guard Corps. Additionally, SpaceX is advancing preparations for an initial public offering with a target valuation of $75 billion and plans to acquire AI startup Cursor.

Nvidia shares are expected to move approximately 5.5% in either direction following the earnings release, according to Bloomberg. Investors are looking to the results to gauge whether AI demand will continue to boom, as the chipmaker is a linchpin of the industry and could offer clues about whether Big Tech is still spending massively on AI build-outs. Semiconductor stocks, including Intel, Micron, Sandisk, AMD, Marvell, and Arm Holdings, rebounded in premarket trading on Wednesday, anticipating the results.

Target reported a $0.28 earnings beat and increased its full-year sales outlook, citing strong performance in beauty, hardlines, and food departments. Lowe’s also beat expectations on the top and bottom lines. These results defied broader consumer sentiment concerns driven by high energy prices, which have strained household budgets and dampened interest in growth stocks.

Oil prices fell after President Trump suggested the war with Iran could end quickly, despite threats of retaliation from Iran’s Revolutionary Guard Corps. Brent crude futures fell roughly 2.4% to trade below $109 per barrel, while US WTI crude fell 2% to $102 per barrel. The Strait of Hormuz remains closed, raising concerns about global oil stock drawdowns.

SpaceX is preparing for an initial public offering targeting a valuation of $75 billion, with Goldman Sachs set to lead the offering. The company also plans to acquire AI coding startup Cursor for $60 billion, contingent on the completion of its IPO. The deal is expected to proceed 30 days after trading begins, with a $10 billion breakup fee if the acquisition falls through. Goldman Sachs has secured the “lead-left” position on the SpaceX IPO prospectus, granting it top billing and potentially higher fees, alongside participation from Morgan Stanley, JPMorgan, Citigroup, and Bank of America.

The average yield on sovereign debt due in a decade or more has reached its highest level since July 2008, driven by inflation expectations and fiscal concerns. Minutes of the Federal Reserve’s April meeting, set for release on Wednesday, will reveal the depth of the differences among policymakers on the path of rates.