Wall Street expected to open with gains as oil prices fall

U.S. stock index futures point to gains as bond yields decline and crude oil prices drop. The 10-year Treasury yield eased to 4.64% from 4.66% late Tuesday, though it remains well above levels before the war with Iran began. Higher yields can raise borrowing costs for mortgages and for companies building AI data centers, which can slow economic activity. Lower energy prices provide some relief, but gasoline prices continue rising, with AAA reporting an average of $4.56 per gallon. Target shares rose after stronger first-quarter sales and an increased annual revenue outlook. Attention centers on Nvidia’s quarterly results after the close, which could influence technology stocks and the broader market.

"U.S. markets are poised to open with gains on Wednesday as bond yields slipped and oil prices fell. Futures for the S&P 500 rose 0.4% while futures for the Dow Jones Industrial Average edged 0.2% higher and Nasdaq futures jumped 0.7%. The yield on the 10-year Treasury eased overnight to 4.64% from 4.66% late Tuesday, but are up from less than 4% before the war with Iran began. That's a notable increase and part of the reason that stock prices look even more expensive while threatening to slow the economy."

"Higher yields can drive up rates for mortgages and loans going to companies to build AI data centers, which has been a big source of growth for the economy. There was also some relief from higher energy prices, which can hamper growth as well. Early Wednesday, U.S. benchmark crude oil fell $2.65 to $101.50 per barrel. Brent crude, the international standard, lost $2.89 to $108.39 per barrel. But gasoline prices in the U.S. continued to rise."

"The average price for a gallon of gasoline rose 3 cents overnight to $4.56, according to the AAA motor club, or about 43% more than it cost last year at this time. In equities trading, Target rose 2% after the Minneapolis retailer reported a jump in first quarter sales and raised its annual revenue outlook. Target, which embarked on a turnaround plan under its new CEO earlier this year, said it expects the momentum to continue through 2026."

"Attention Wednesday will be focused on Nvidia's quarterly results due after the closing bell. The chip company has routinely blown past analysts' expectations each quarter and provided forecasts for future growth that have consistently topped Wall Street's. How it does could determine whether technology stocks and the larger U.S. stock market can maintain their rally. Nvidia fell 0.8% Tuesday and was one of the heaviest weights on the S&P 500 because of its immense size. Its shares were up 1.8% in premarket trading Wednesday."

Read at Fast Company