U.S. Stock Futures Rise 0.1% as Bond Yield Pressure Eases

U.S. stock futures edged higher Wednesday morning as a pause in a sharp government bond selloff provided relief to equities, with traders turning their attention to Nvidia's pivotal earnings report. Futures tied to the S&P 500 were up 0.1 percent, while Nasdaq 100 futures added 0.4 percent.

"Investors across the Street — and really across asset classes — look to Nvidia as a signal for where the AI infrastructure buildout is going, and we'll be watching closely," Ben Snider, chief U.S. equity strategist at Goldman Sachs, said on Tuesday.

The move in futures follows a three-day losing streak for the S&P 500 and Nasdaq Composite, which fell 0.67 percent and 0.84 percent respectively in the previous session. The pressure came as the 10-year U.S. Treasury yield briefly hit 4.687 percent on Tuesday, its highest since January 2025, while the 30-year yield topped 5.19 percent. Early Wednesday, the 10-year yield cooled by 2 basis points. Futures for the Dow Jones Industrial Average, however, declined 12 points, or 0.02 percent.

The market is now focused on two key events for direction. Nvidia, which has accounted for about 20 percent of the S&P 500's returns this year, will report first-quarter results after the bell. Later in the day, the Federal Reserve will release the minutes from its April meeting, which will be scrutinized for clues on the central bank's thinking about inflation and the path of interest rates.

The recent spike in yields had reverberated across global markets, contributing to declines in Asian equities, with Japan's Nikkei 225 and South Korea's Kospi falling overnight. Investors had grown concerned that a series of economic reports last week indicated inflation may be reigniting.

Traders are also digesting a slate of corporate earnings before the bell, with reports due from Lowe's, Target, and TJX, among others.

This article is for informational purposes only and does not constitute investment advice.