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US Equity Indexes Rise as Investors Await Nvidia's Earnings While Iran Peace Talks Enter Final Stages

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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.)."

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US Equity Indexes Fall as Trump's Warnings to Resolve Iran Standoff Send Treasury Yields Sharply Higher

US equity indexes slid as the 30-year Treasury yield rose to a two-decade high amid bets favoring higher interest rates and President Donald Trump's threat to Iran that strikes will resume if talks with the Gulf nations fail to produce a framework for a peace deal.The Nasdaq Composite fell 0.8% to 25,870.71, with the S&P 500 down 0.7% to 7,353.61 and the Dow Jones Industrial Average lower by 0.7% to 49,363.88 at the close on Tuesday.Materials, communication services, and consumer discretionary led the decliners. Health care and energy were the top gainers.Most Treasury yields rose as investors looked for evidence of a rollback in Iran's nuclear ambitions in its ongoing talks with Gulf nations to agree on a framework for resuming peace negotiations with the US. The 30-year rate jumped 3.4 basis points to 5.18%, the strongest level since the global financial crisis, amid concern that a long, drawn-out war in Iran would further worsen inflation in the US. The 10-year climbed 4.2 basis points to 4.67%, the highest since January 2025.President Trump warned strikes would resume against Iran as part of a push for a deal to end the war, Bloomberg reported. "I hope we don't have to do the war, but we may have to give them another big hit," Trump told reporters on Tuesday, following previous comments that Iran cannot have nuclear weapons.Trump said Iran has "two or three days" to reach a deal to end the war or face renewed attacks, according to a report from Al Jazeera. An Iranian official said the US threat of a massive assault at any moment will be met "resolutely," and Iran is "prepared to confront any military aggression," the news report said.Tehran's latest peace proposal to the United States involves ending hostilities on all fronts, including Lebanon, the exit of US forces from areas close to Iran, and reparations for destruction caused by the US-Israeli war, The Times of Israel cited Iran state media on Tuesday. The terms as described in the Iranian reports appeared little changed from Iran's previous offer, which Trump rejected last week.In precious metals, gold futures fell 1.5% to $4,489.8, and silver futures dropped 4.2% to $74.19.West Texas Intermediate crude oil futures fell 0.8% to $107.77, and Brent crude futures declined 0.8% to $111.24.In economic news, Redbook US same-store sales rose by 8.1% from a year earlier in the week ended May 16 after a 9.6% year-over-year increase in the previous week."Coming off last-minute Mother's Day shopping on Sunday, sales and traffic slowed across the board in the middle of the week, but picked up during the weekend as graduation, BBQ season, and warm weather approached," Redbook noted.US pending home sales increased more than expected last month as home buyers apparently shrugged off mounting economic uncertainty. The forward-looking indicator of home sales based on contract signings increased 1.4% month over month in April, the National Association of Realtors said. Analysts expected a 1% gain, according to a Bloomberg-compiled survey.In company news, Alphabet's (GOOG, GOOGL) Google said Tuesday it introduced Gemini Spark, a 24/7 AI agent designed to handle and execute digital tasks and workflows, alongside other launches. The move comes amid a proliferation of AI models that is changing the tech landscape globally, including from Amazon.com (AMZN)-backed Anthropic.

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Asia Markets

US Equity Indexes Slide as Treasury Yields Surge Amid Trump's Warning to Iran in Event of No Peace Deal

US equity indexes fell after the 30-year Treasury yield hit its highest in just under two decades, while bets favoring interest rate increases jumped amid President Donald Trump's threat to resume strikes if Iran fails to reach a peace deal.The Nasdaq Composite fell 0.3% to 26,025.7, with the S&P 500 down 0.2% to 7,390.5 and the Dow Jones Industrial Average lower by 0.2% to 49,579.2 in midday trading on Tuesday.President Trump warned strikes would resume on Iran in the coming days as part of the push for a deal to end the war, after he said he had just called off a US attack, Bloomberg reported."I hope we don't have to do the war, but we may have to give them another big hit," Trump told reporters on Tuesday, referring to talks between the Gulf nations and Tehran to agree on a framework for resuming peace negotiations.When asked how long he would wait, he said: "Well, I mean, I'm saying two or three days, maybe Friday, Saturday, Sunday. Something maybe early next week - a limited period of time."The North Atlantic Treaty Organization is considering helping ships pass through the Strait of Hormuz if it doesn't get unblocked by early July, Bloomberg reported, citing a senior official in the military alliance. Several members of NATO support the idea, but it doesn't have the necessary unanimous support, the report said, citing a diplomat from a NATO country.US Treasury Secretary Scott Bessent called on world leaders at a G7 conference to help the US fight Iranian terrorism by "rooting out the financing that sustains it," CNBC reported.West Texas Intermediate crude oil futures rose 0.1% to $108.80, while Brent crude futures fell 1% to $111.03.US Treasury yields traded mixed, but elevated, as crude oil supply-shock-driven inflationary concerns boosted bets for interest rate increases from September onwards. The 30-year rate rose 2.2 basis points to 5.17%, the strongest level since 2007. The 10-year climbed three basis points to 4.65%, the highest since January 2025.The probability of a 25 basis-point increase in US interest rates in December was at 40% from 1% a month ago, according to the CME FedWatch tool midday Tuesday. The comparisons for September and October show a similar jump in rate-increase probabilities.In precious metals, gold futures fell 1% to $4,510.2, and silver futures dropped 3% to $75.11.In economic news, Redbook US same-store sales rose by 8.1% from a year earlier in the week ended May 16 after a 9.6% year-over-year increase in the previous week."Coming off last-minute Mother's Day shopping on Sunday, sales and traffic slowed across the board in the middle of the week, but picked up during the weekend as graduation, BBQ season, and warm weather approached," Redbook noted.US pending home sales increased more than expected last month as home buyers apparently shrugged off mounting economic uncertainty. The forward-looking indicator of home sales based on contract signings increased 1.4% month over month in April, the National Association of Realtors said. Analysts expected a 1% gain, according to a Bloomberg-compiled survey.

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Asia Markets

Exchange-Traded Funds Decline, US Equities Drop After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV fell. Actively traded Invesco QQQ Trust (QQQ) shed 0.1%.US equity indexes fell in midday trading on Tuesday after the 30-year Treasury yield traded at its highest level in just under two decades and as the Iran standoff continued.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each rose about 0.8%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) added 0.3%; iShares US Technology ETF (IYW) advanced 0.1%, and iShares Expanded Tech Sector ETF (IGM) increased less than 0.1%.The State Street SPDR S&P Semiconductor (XSD) rose 2%, and iShares Semiconductor (SOXX) was up 1.7%.FinancialThe State Street Financial Select Sector SPDR (XLF) slipped 0.4%. Direxion Daily Financial Bull 3X Shares (FAS) declined 1.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), climbed 1.3%.CommoditiesCrude oil fell less than 0.1%, and the United States Oil Fund (USO) added 1.7%. Natural gas gained 2.8%, and the United States Natural Gas Fund (UNG) was up 2.7%.Gold on Comex eased 1%, and the State Street SPDR Gold Shares (GLD) fell 1.1%. Silver dropped 2.8%, and iShares Silver Trust (SLV) lost 3.5%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 0.1%. The Vanguard Consumer Staples ETF (VDC) gained 0.3%, and iShares Dow Jones US Consumer Goods (IYK) was down 0.1%.The State Street Consumer Discretionary Select Sector SPDR (XLY) dipped 1.3%. VanEck Retail ETF (RTH) fell 0.4%, and the State Street SPDR S&P Retail (XRT) added 0.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) was up 1.2%, iShares US Healthcare (IYH) added 1%, and Vanguard Health Care ETF (VHT) rose 0.9%. IShares Biotechnology ETF (IBB) gained 0.5%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) fell 0.5%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also lower.CryptocurrencyIn midday activity, bitcoin (BTC-USD) shed 0.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) shed less than 0.1%, ProShares Ether ETF (EETH) was down 0.3%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 0.8% lower.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH