US futures rise as Nvidia earnings and Fed minutes loom amid inflation fears
The S&P 500 and Nasdaq 100 futures posted gains on Wednesday ahead of critical data releases, while investors digested strong retail results and escalating oil prices linked to the conflict in Iran.
US stock futures climbed on Wednesday as Wall Street awaited Nvidia’s quarterly earnings and the release of the Federal Reserve’s April meeting minutes. The S&P 500 futures rose 0.4%, the Nasdaq 100 futures jumped 0.7%, and contracts on the Dow Jones Industrial Average edged up 0.2%. The advance followed a Tuesday decline driven by a pullback in technology stocks and a surge in Treasury yields, with investors seeking clarity on artificial intelligence demand and inflationary pressures.
Nvidia shares are a focal point for markets, which are pricing in a potential 5.5% move in either direction following the results. As the linchpin of the AI industry, the chipmaker’s report is expected to provide signals on whether big technology firms continue to spend massively on infrastructure buildouts. Rivals in the semiconductor sector, including Intel, Micron, Sandisk, AMD, Marvell, and Arm Holdings, gained in premarket trading, rebounding from recent sell-offs driven by rising bond yields and inflation fears.
The release of the Federal Reserve’s April meeting minutes is also a key catalyst, with expectations that the document will reveal disagreements among policymakers regarding the path of interest rates. Sticky inflation concerns have dampened interest in growth stocks, as US bond yields have surged to levels not seen since the global financial crisis. Long-dated sovereign debt yields have reached their highest point since July 2008, reflecting a broader repricing of duration driven by fiscal realities and persistent inflation risks.
Geopolitical tensions have further exacerbated inflation pressures, with Brent crude oil prices rising above $110 a barrel due to the conflict in Iran affecting the Strait of Hormuz. President Trump has threatened military action against Iran if a peace deal is not reached soon, asserting the conflict will end "very quickly". Meanwhile, US Vice President JD Vance stated that progress has been made in negotiations, suggesting a diplomatic window remains open, though the Revolutionary Guard has warned of potential regional escalation.
Amidst this macroeconomic backdrop, Target reported first-quarter earnings that beat expectations, defying broader consumer weakness. The retailer posted a $0.28 earnings per share beat and increased sales across all merchandise departments, led by beauty, hardlines, and food. Target raised its full-year sales outlook, expecting sales to increase in each quarter of the year. CEO Michael Fiddelke noted the company is focusing on providing value to consumers amidst headwinds, highlighting that store traffic and sales have increased despite gas price spikes straining household budgets.
