Global stocks saw gains as a decline in oil prices led to lower bond yields, with market participants eagerly awaiting Nvidia Corp.'s earnings report for insights into the future of artificial intelligence. The Nasdaq 100 outperformed other major benchmarks, driven by a rebound in chipmakers, which ended a seven-day losing streak for Nvidia. Brent crude settled below $90 a barrel amidst hopes for renewed energy flows through the Strait of Hormuz, as Iran and Oman discussed an interim framework.
Sentiment was further bolstered by reports of the U.S. returning diplomats to Middle East embassies, which eased concerns about an escalation of regional conflicts. The decrease in oil prices alleviated worries about inflationary pressures, contributing to a rally in Treasuries. The yield on 10-year Treasuries dropped by seven basis points to 4.63%, while Germany's 10-year yield declined five basis points to 3.20%, and Britain's 10-year yield fell seven basis points to 4.99%.
Analysts are closely watching Nvidia's earnings, expecting revenue to have nearly doubled last quarter to $92 billion. Mark Malek of Siebert Financial noted that Nvidia is performing exceptionally well, and good news is widely anticipated. Kenny Polcari of SlateStone Wealth highlighted investor desire for reassurance that AI demand remains robust, hyperscaler spending is not slowing, margins are stable, and guidance continues to justify substantial ongoing investment.
The S&P 500 rose 0.3%, the Nasdaq 100 gained 0.6%, and the Dow Jones Industrial Average increased by 0.3%. The MSCI World Index also saw a 0.4% rise. In commodity markets, West Texas Intermediate crude fell 4.6% to $81.08 a barrel, while spot gold rose 0.3% to $4,666.70 an ounce.
