Key facts
- Wall Street indexes opened higher on Wednesday, recovering from a previous session's tech-led slump.
- Gains were supported by retreating government bond yields from multi-decade highs.
- Investors were assessing corporate earnings updates and awaiting Federal Reserve minutes.
- Technology shares, including Oracle, Alphabet, Marvell, and Intel, faced continued pressure.
- Crude oil prices rose, with Brent crude nearing $92 a barrel and WTI around $85.67.
- Elevated bond yields globally, including a 19-year high for the 30-year U.S. Treasury, pressured markets on Tuesday.
Wall Street's main indexes opened higher on Wednesday, recovering from a technology-driven slump in the previous session. The gains were attributed to retreating government bond yields from multi-decade highs and investors assessing a slew of corporate updates.
The Dow Jones Industrial Average rose 120.1 points, or 0.23%, at the open to 53463.47. The S&P 500 gained 25.0 points, or 0.32%, to 7716.74, while the Nasdaq Composite increased by 104.2 points, or 0.40%, to 26393.889 at the opening bell.
Technology shares continued to face pressure, with Oracle falling nearly 1% in pre-market trading following a report that OpenAI's second-quarter results had disappointed investors. This weighed on other tech names such as Alphabet, Marvell, and Intel, which traded lower. The pressure on chip and AI-linked stocks followed a significant sell-off on Tuesday.
Crude oil prices also added to market concerns, with Brent crude rising about 1% to around $91.92 a barrel and West Texas Intermediate trading near $85.67 a barrel. This rise is linked to renewed uncertainty over the Strait of Hormuz. U.S. President Donald Trump stated that no talks were underway with Iran and maintained the Strait of Hormuz was open, contradicting Tehran's position.
Higher crude prices are fueling concerns about inflation, which could lead to interest rates remaining elevated for longer, further pressuring equities. The bond market also contributed to the pressure, with major U.S. averages falling on Tuesday as government bond yields surged globally. The 30-year U.S. Treasury yield reached a 19-year high, Japan's 10-year government bond yield hit a three-decade high, Germany's 30-year bund yield climbed to its highest since 2011, and France's 30-year borrowing cost reached its highest level since 2008.
Investors were looking ahead to the Federal Reserve's July meeting minutes, due later on Wednesday, for further insights into monetary policy.