Wall Street paused on Wednesday after Tuesday's rally, with futures barely moving: the Dow stayed flat, the S&P 500 edged up 0.1%, and the Nasdaq rose 0.2%. Traders are cautiously awaiting the Federal Reserve's meeting minutes and Nvidia's earnings, a major event given the company's central role in the AI boom.
 
Oil prices rose 1%,  driven by rising geopolitical tensions, including Trump's warning that Putin is “playing with fire.” However, Nvidia remains a main focus. The chipmaker is expected to report a 66% revenue jump, fueling investor excitement. Its stock gained 0.8% in premarket trading, but sky-high expectations make markets vulnerable to any disappointment, especially in the volatile semiconductor sector.
Investors also have their eyes are on the Fed. Minutes from the May 6–7 meeting, due at 2 p.m. ET, are expected to shed light on its rate stance amid rising inflation concerns. New York Fed President John Williams has already hinted at stronger action if needed.
 
Yesterday, the S&P 500 jumped 2%, helped by easing bond yields and optimism over diplomatic progress. Still, the underlying picture is far from simple. The US-EU trade standoff resembles a high-stakes poker match, US-China relations seem on pause, and concerns over US debt persist. 
 
Markets often rise slowly and fall fast - but recently, it's been the reverse. After dropping 2.5% over four sessions, the S&P 500 recouped most of that in a single day. The rally was fueled by signs of softening trade tensions. The EU has signaled readiness to strike a deal with the US on tariffs before the July 9 deadline. While success isn't guaranteed, talks are in motion - suggesting that Trump's pressure tactics may be working. The negotiation game continues: the EU must appear firm, while the White House needs a “win”.
 
Bond yields also fell Tuesday as US Treasuries rose, easing a major source of market tension. A surprise rally in Japanese bonds - sparked by speculation that Japan may scale back long-term debt issuance - set off a global reaction. Governments elsewhere are also shifting to shorter-term borrowing to cut costs, as longer maturities typically carry higher yields due to greater risk.
 
This combination - lower tariffs and easing bond yields - lifted US equity indices. Optimism is growing that the worst of the global trade fears might be behind us. Plus, there's a helpful domino effect: calmer trade dynamics could ease inflation, giving the Fed more room to cut rates sooner. That would lower debt costs and support growth. Of course, these are just theories, and reality rarely follows the script. Still, Tuesday's environment - with ongoing EU/US talks and cooling yields - was far better than the turmoil just a few days earlier. It's a reminder that market sentiment is driven by narratives.
 
Other big tech names reporting today after the close include Salesforce, Synopsys, and Veeva.
 
In Asia-Pacific trading this morning, Wall Street's rally didn't spread evenly. South Korea was up 1.3%, while Japan was only up 0.2%. Markets in Hong Kong (-0.4%), India (-0.3%), and Australia (-0.2%) were in the red. European indices are bearish, with the Stoxx Europe 600 down 0.3%.

Today's economic highlights:

On today's agenda: economic confidence, the PPI GM, and private sector jobs GT in France; unemployment change in Germany; in the United States, the Richmond Fed manufacturing index and consumer confidence. See the full calendar here.

  • GBP / USD: US$1.35
  • Gold: US$3,306.61
  • Crude Oil (BRENT): $63.81 (WTI) $61.50
  • United States 10 years: 4.47%
  • BITCOIN: US$108,800

In corporate news:

  • CenterPoint Energy announced a public offering and increased its 10-year capex plan to $52.5 billion.
  • General Motors investing $888 million in Tonawanda Plant for V-8 engines production.
  • Hologic rejected multiple buyout offers, including a $16 billion proposal from TPG and Blackstone.
  • Motorola Solutions acquired Silvus Technologies for $4.4 billion.
  • Chevron received limited authorization to maintain assets in Venezuela.
  • Eli Lilly is set to acquire SiteOne for $1 billion to position itself in the non-opioid painkiller market.
  • The Travelers is selling its personal and commercial insurance business in Canada to Definity for $2.4 billion.
  • Apple plans to launch a dedicated video game app.
  • Rocket Lab is acquiring Geos for $275 million.
  • Rob Katz becomes CEO of Vail Resorts.

Analyst Recommendations:

  • Applovin Corporation: Baptista Research upgrades to buy from underperform with a price target raised from USD 451 to USD 456.40.
  • Bj's Wholesale Club Holdings, Inc.: Roth Capital Partners maintains a neutral recommendation with a price target raised from USD 101 to USD 106.
  • Bristol-Myers Squibb Company: Berenberg maintains its hold recommendation and reduces the target price from 60 to USD 55.
  • Broadcom Inc.: Redburn Atlantic initiates a Buy recommendation with a target price of USD 301.15. 
  • Cardinal Health, Inc.: Baird maintains its outperform rating and raises the target price from USD 170 to USD 181.
  • Cencora, Inc.: Baird maintains its outperform rating and raises the target price from USD 350 to USD 351.
  • Centerpoint Energy, Inc.: Jefferies maintains its buy recommendation and raises the target price from USD 42 to USD 43.
  • Chewy, Inc.: Barclays maintains its overweight recommendation and raises the target price from 44 to USD 50.
  • Fair Isaac Corporation: Baird upgrades to outperform from neutral with a target price reduced from USD 2021 to USD 1900.
  • Fortinet, Inc.: Baptista Research upgrades to hold from underperform with a price target raised from USD 97.60 to USD 115.30.
  • Informatica Inc.: Wolfe Research downgrades to peerperform from outperform.
  • Mongodb, Inc.: Guggenheim maintains its buy recommendation and reduces the target price from USD 300 to USD 235.
  • Rubrik, Inc.: Guggenheim maintains its buy recommendation and raises the target price from USD 80 to USD 105.
  • The Mosaic Company: Baptista Research maintains its hold recommendation with a price target raised from 29.70 to USD 39.70.