By Dow Jones Newswires Staff
U.S. stock futures edged higher ahead of the Federal Reserve's rate decision as well as earnings releases from some of the most valuable tech companies in the U.S.
Nervousness around the U.S.-Iran war persists. Oil prices remained above $112 a barrel after The Wall Street Journal reported that President Trump has instructed aides to prepare for an extended blockade of Iran.
U.S. Treasurys strengthen slightly as investors expect the Federal Reserve to leave interest rates untouched in what is expected to be Jerome Powell's last meeting as Chair. The decision is set for release early afternoon Eastern time.
Alphabet, Microsoft, Amazon.com and Meta Platforms all report after market close Wednesday amid jitters around artificial intelligence-linked companies after a WSJ report detailed concerns around the sustainability of OpenAI's growth.
--In early European trading, Brent crude for June delivery rose 1% to $112.34 a barrel, while WTI futures for June were up 0.7% to $100.64 a barrel. "Stalled peace talks have raised the prospect of an indefinite disruption to oil supplies from the Persian Gulf," analysts at ANZ said. Traders are now watching for updates on peace negotiations and this week's U.S. crude inventory report for signals on how quickly stockpiles are declining amid strong export demand.
--In the U.S., futures tied to the S&P 500 and the Dow Jones Industrial Average were both up 0.1%. The tech-heavy Nasdaq edged 0.3% higher premarket after suffering its worst day in over a month as concerns over OpenAI's revenue growth sparked a slide in tech stocks. All eyes are on key earnings releases from megacap tech stocks after the close.
Shares in Robinhood fell 9.5% premarket after the brokerage posted earnings after the bell, with a drop in cryptocurrency trading revenue weighing on the stock.
--In Asia, South Korea's Kospi closed 0.8% higher, led by energy stocks. Japan was closed for a public holiday. China's Shanghai Composite ended 0.7% higher. Hong Kong's Hang Seng Index rose 1.5% amid a flurry of company earnings. Rare earths stocks rose in China and Hong Kong after Beijing said it would tighten scrutiny over production. India's Sensex also gained, adding 1.3%. Meanwhile, Singapore's FTSE Straits Times Index fell 0.5%, while the FTSE Bursa KLCI declined 0.4%.
--European stock indexes were largely lower at the open as the utility and retail sectors fell, while earnings reports drove single stock moves. The Europe-wide Stoxx 600 was 0.1% lower. Germany's DAX gained 0.2% as Adidas climbs 7.6% after reporting earnings and energy-sensitive stocks rose. The CAC 40 slipped 0.2% in Paris as luxury stocks fell. London's FTSE 100 was 0.4% lower, dragged by falling retailers and pharmaceutical companies. Italy's FTSE MIB edged 0.1% lower, while the Spanish IBEX 35 slid 0.3% as renewable-energy stocks slipped. ASML rose 0.8% in the Netherlands, though the Dutch AEX fell 0.2%. UBS gained 5% in Switzerland after posting higher first-quarter profits.
--The DXY dollar index rose 0.1% to 98.735. The Federal Reserve's decision later today is unlikely to have much impact on the dollar, as Trump's pick to replace Powell, Kevin Warsh, could take a different direction, Commerzbank's Volkmar Baur said in a note.
--U.S. Treasury yields edged marginally lower. The Federal Reserve's policy decision is expected to hold interest rates at 3.50%-3.75%. Markets will be watching for hints on the future policy path as money markets price a small risk of a rate cut this year. "In the near term...the Fed is likely to wait and see given the high level of uncertainty, and our forecast is for a rate cut in December," SEB's Amanda Sundstrom said. The two-year Treasury yield fell 0.4 basis points to 3.838%; the 10-year yield declined 0.6 basis points to 4.346%.
--Eurozone government bonds yields edged higher in early trade. A string of economic data on Wednesday and Thursday, ahead of the European Central Bank's meeting, has the potential to move yields. Spanish flash estimate annual CPI inflation for April showed a small rise to 3.5%, as expected. Government bond supply on Wednesday will come from Italy and Germany. The 10-year German Bund yield rose 0.9 basis points to 3.068% and the 10-year Italian BTP yield was up 1.8 basis points at 3.890%.
--Bitcoin rose 0.7% to $76,993, but remains within its recent range. The gains came after White House digital asset adviser Patrick Witt said at a bitcoin conference that the Trump administration plans to share a big announcement about the strategic bitcoin reserve.
--In early European trading, gold futures in New York were down 0.3% to $4,591.50 a troy ounce, pressured by oil-driven inflation risks. Silver was flat at $73.23 an ounce, while platinum fell 0.9% to $1,941.60 an ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
04-29-26 0435ET
