US equity indexes rose ahead of Nvidia's (NVDA) earnings and April minutes from the Federal Reserve's policy meeting, and as Iran's negotiations with a trio of Gulf nations entered the final stages.
The Nasdaq Composite rose 1.1% to 26,165.1, with the S&P 500 up 0.8% to 7,412.9 and the Dow Jones Industrial Average higher by 1% to 49,854.6 in midday trading on Wednesday.
Consumer discretionary and technology topped the sector charts. Energy was the worst performer.
Nvidia's (NVDA) fiscal Q1 sales are expected to outperform market projections, with potential for "enhanced" cash returns likely to be among the key areas of focus, BofA Securities said in a note. The brokerage maintained its buy rating on the Nvidia stock, with a $320 price objective, citing its "dominance in the fastest growing tech market and its compelling valuation."
Chip stocks steadied ahead of Nvidia's earnings, which investors view as a "crucial test of AI demand amid concerns about elevated Treasury yields," according to a D.A. Davidson note.
Meanwhile, Iran negotiations are in the final stages, Reuters cited US President Donald Trump as saying on Wednesday. But Trump warned of further attacks unless Tehran agrees to a deal.
"We're in the final stages of Iran. We'll see what happens," Trump was cited as telling reporters. "Either have a deal, or we're going to do some things that are a little bit nasty, but hopefully that won't happen."
"If aggression against Iran is repeated, the promised regional war will extend beyond the region this time," Reuters cited the Revolutionary Guards as saying in a statement.
West Texas Intermediate crude oil futures slid 0.8% to $107.77, while Brent crude futures slumped 5.7% to $104.92.
US Treasury yields fell, with the 30-year down 6.5 basis points to 5.12%, retreating from its highest since 2007. The 10-year dropped 8.7 basis points to 4.58%, also declining from its strongest level in more than a year.
In precious metals, gold futures rose 0.6% to $4,536.8, and silver futures climbed 1.5% to $75.30.
In US economic news, the Federal Reserve is scheduled to post minutes from its April policy meeting at 2 pm ET, in which policymakers had voted to keep the federal funds rate unchanged at 3.5% to 3.75%.
However, Dallas Fed president Lorie Logan, Minneapolis Fed president Neel Kashkari, and Cleveland Fed president Beth Hammack were the three members of the Federal Open Market Committee who explicitly dissented against language that left the door open to a possible easing bias, according to a Scotiabank note. Boston Fed president Susan Collins later revealed that she was a non-voting supporter of the dissenters.
"That makes almost one-quarter (4) of the 17 FOMC members and one-quarter (3) of the voting FOMC members who officially opposed any hint at easing" at the last meeting, Derek Holt, head of capital markets economics at Scotiabank, said in an earlier note. "Will others be revealed? Watch the language that cites frequency of citation for an indication (one, a couple, a few, some, several, many, most, etc.)."