
Futures traded flat after a strong mid-week rally that followed three consecutive down days. All major indices closed up at least 1% after Nvidia earnings released after the bell. Falling oil prices and bond yields were cited alongside strong earnings from big-box retailers. The Russell 2000 led with a 2.55% gain, while the Nasdaq rose 1.55%, the S&P 500 rose 1.08%, and the Dow rose 1.31%. Treasury yields fell across the curve, with the 30-year dropping nearly 6 basis points to 5.12% and the 10-year dropping 8 basis points to 4.59%. Oil fell sharply after easing geopolitical tensions related to Iran, with Brent and WTI down more than 5%. Natural gas also declined. Gold was positioned for a move higher at the close.
"Futures are trading flat after a strong mid-week rally that saw all major indices close 1% or higher, following three consecutive ominous days. Waiting all day for the close in anticipation of Nvidia's earnings, which came after the bell, all the major indices exploded higher in a solid relief rally. Falling oil prices and bond yields, along with strong earnings from some big-box retailers, were all cited as reasons for the mid-week blast off."
"Treasury Bonds: Yields plunged across the Treasury curve as bond traders snapped up some of the highest-yielding government debt in 20 years. When the dust settled, the yield on the 30-year-long bond dropped almost 6 basis points to 5.12%, while the benchmark 10-year note was last seen at 4.59%, down 8 basis points. For reference, 100 basis points equals 1%. While the lower rates were encouraging, it is unlikely there will be an interest rate cut until 2027."
"Oil and Gas: After a seemingly never-ending move higher, oil prices plunged on Wednesday as geopolitical tensions eased after President Trump announced that the U.S. was in the "final stages" of reaching a deal with Iran. That ignited a selling and short covering spree that consumers feeling the pinch at the gas pump will applaud. Brent Crude ended the day at $105.30, down 5.38%, while West Texas Intermediate closed the session at $98.26, down 5.66%. Natural gas, which has been on a roll, closed at $3, down 3.53%."
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