Futures linked to the main U.S. stock indices keep relatively close to the flatline. Markets are assessing developments in the Iran war and preparing for all-important quarterly earnings from artificial intelligence chip behemoth Nvidia. Analysts predict that the paperwork for the hotly-anticipated initial public offering of Elon Musk’s rocket company SpaceX could be released later today, while minutes from the Federal Reserve’s April gathering are due to be published.
Futures steady
U.S. stock futures were stable on Wednesday, as investors kept tabs on inflationary concerns and geared up for crucial earnings from Nvidia that could sway the AI narrative.
By 03:32 ET (07:32 GMT), the Dow futures contract had risen by 27 points, or 0.1%, S&P 500 futures had gained 12 points, or 0.2%, and Nasdaq 100 futures were up by 122 points, or 0.4%.
The main averages on Wall Street retreated on Tuesday. Equities came under pressure from an extended sell-off in government bonds, reflecting worries that the ongoing Iran war could spark a burst of inflation around the world and, in turn, persuade central banks to hike interest rates.
Notably, the yield on the 30-year U.S. Treasury bond, known as a gauge of how traders view the economic outlook, soared to levels not hit since the global financial crisis almost two decades ago. Yields tends to move in the opposite direction to prices.
2. Trump says Iran war could end "very quickly"
Yet hopes remain that the U.S. and Iran may be able to reach a resolution that will end their more than two-month old conflict.
U.S. President Donald Trump told lawmakers on Tuesday evening that the Iran war could end "very quickly." He said earlier this week that he had postponed planned fresh attacks on Iran at the request of three Gulf countries.
Vice President JD Vance also struck an optimistic tone in separate comments, stating that Tehran wanted to make a deal.
Meanwhile, two Chinese-flagged supertankers carrying oil exited the Strait of Hormuz on Wednesday, Reuters reported, citing LSEG and Kpler shipping data. South Korean-flagged Very Large Crude Carrier Universal Winner is also leaving the narrow waterway off of Iran’s southern coast, which has been effectively closed to tanker traffic since the start of the U.S.-Israeli war on Iran in late February.
Oil prices fell, echoing optimism that crimped supply flows through the strait may be more fully unlocked. Still, Brent crude futures, the global oil benchmark, are floating well above pre-war levels.
3. Nvidia results loom large
Beyond the Middle East, perhaps the major event of the trading week is set to take place after the closing bell, when semiconductor giant Nvidia will unveil its latest quarterly results.
Nvidia, whose technology is central to the development of cutting-edge AI models, has become a bellwether for the broader AI industry. Many big-name tech companies have outlined plans to spend heavily on building the infrastructure needed to power AI systems, meaning that expectations for Nvidia’s returns are, as usual, sky-high.
"[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," analysts at Vital Knowledge said in a note.
Yet some worries are swirling around the threat of competition posed by rival chips from Alphabet’s Google and e-commerce titan Amazon, as well as the sustainability of the AI spending rush and soaring costs for memory chips.
4. SpaceX IPO prospectus expected
While observers await these figures, attention is also turning to a potentially historic initial public offering of SpaceX.
Elon Musk’s rocket company is reportedly eyeing June 12 for a possible flotation, which is shaping up to be the largest IPO of all time.
Should that be the case, the firm, which is expected to trade under the ticker "SPCX," may need to make the paperwork for its IPO available to the public by the middle of this week, according to media reports. Analysts at Vital Knowledge suggested that the documents could be released today.
The prospectus would offer investors a critical opportunity to parse through the details of SpaceX’s wide-ranging operations and ownership structure, the reports said.
5. FOMC minutes ahead
Investors will also be paging through minutes from the April meeting of the Federal Reserve, which could outline the challenges confronting Kevin Warsh, Trump’s selection as new Fed Chair.
At the gathering, officials at the rate-setting Federal Open Market Committee stood pat on interest rates and highlighted fears around the inflationary effect of the Iran war, but were split over whether to keep hinting at future cuts to borrowing costs.
It was an unusually divisive end to Jerome Powell’s eight-year tenure at the helm of the central bank, whose independence from outside political pressure has faced a stern test from Trump. The president has frequently criticized Powell and the Fed for not swiftly and aggressive ratcheting down rates, and mounted controversial legal battles.
Powell, in another rare move, indicated last month that he will stay on as a Fed governor until his term finishes in 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."
Is NVDA a bargain right now?
The fastest way to find out is with our Fair Value calculator. We use a mix of 17 proven industry valuation models for maximum accuracy.
Get the bottom line for NVDA plus thousands of other stocks and find your next hidden gem with massive upside.
