Key facts
- US dollar strengthened due to geopolitical risk and inflation fears.
- Oil prices rose, nearing $97 before settling around $96.
- USD/JPY surpassed 160, approaching levels that may prompt Japanese intervention.
- Tech stocks, including Nvidia and software ETFs, experienced significant declines.
- Precious metals and cryptocurrency markets were under pressure.
- US equity futures were mixed as oil prices, bond yields, and USD moved higher.
US equity futures showed mixed performance as oil prices, bond yields, and the US dollar moved higher due to overnight attacks in the Middle East and a lack of progress on a deal. S&P futures were down 0.1% but off session lows, while Nasdaq futures rose 0.2%, with semiconductor stocks like Marvell Technology, Intel, Broadcom, and AMD seeing premarket gains. Marvell Technology added 10% premarket, extending Tuesday's rally, after Nvidia's CEO predicted it would be the next company to hit a $1 trillion valuation. Magnificent Seven stocks were mixed premarket. Cognyte Software slumped 21% after disappointing first-quarter earnings. GameStop rose 13% on increased net sales and a new share repurchase authorization. Iren Ltd. shares increased after signing a transmission connection agreement for a data center campus. Macy's climbed 3% after boosting its full-year earnings forecast. Medtronic rose 2% on better-than-expected fourth-quarter revenue. Palo Alto Networks fell 2% after reporting results. Sherwin-Williams climbed 3% after it and Nippon Paint abandoned efforts to acquire Akzo Nobel. Sprinklr fell 3% after trimming its full-year revenue outlook. SpaceX plans to set IPO terms, aiming to sell shares at $135 apiece. Uber implemented usage caps on some AI tools to manage costs. GitLab is cutting about 14% of its workforce. Google must modify its AI-generated search summaries following an order from the UK's antitrust watchdog. Brent crude rose 2.3% to over $98 a barrel, and the 10-year Treasury yield climbed four basis points to 4.48%, fueling inflation concerns. The yield curve is bear flattening, with yields up 3-4 basis points as the USD is poised for its strongest week since mid-May. Economic data releases scheduled include the May ADP employment change, S&P Global US services PMI, and April factory orders and May ISM services index. Fed speakers Barr and Logan are scheduled to speak, and the Beige Book is due for release.