U.S. stock futures traded close to flat on Wednesday as investors weighed inflation concerns linked to the Iran conflict while preparing for closely watched quarterly earnings from NVIDIA Corporation (NASDAQ:NVDA), which are expected to provide fresh insight into the strength of the artificial intelligence sector.
By 03:32 ET, futures linked to the Dow Jones Industrial Average were up 27 points, or 0.1%, while S&P 500 futures gained 0.2% and Nasdaq 100 futures advanced 0.4%. The previous session saw Wall Street retreat as government bond yields climbed sharply, reflecting fears that the ongoing Iran war could fuel global inflation and potentially force central banks to raise interest rates. The yield on the 30-year U.S. Treasury bond rose to levels not seen since the global financial crisis nearly twenty years ago.
Trump says Iran conflict could end “very quickly”
Despite ongoing tensions, hopes remain that the United States and Iran could still reach a diplomatic solution to end the conflict, which has lasted for more than two months.
U.S. President Donald Trump told lawmakers on Tuesday that the Iran war could end “very quickly.” Earlier this week, Trump said he had delayed further planned attacks on Iran following requests from three Gulf states.
Vice President JD Vance also adopted a more optimistic tone, stating that Tehran was seeking a deal.
Meanwhile, shipping data cited by Reuters showed that two Chinese-flagged oil supertankers and the South Korean-flagged tanker Universal Winner exited the Strait of Hormuz on Wednesday, signalling tentative improvement in shipping activity through the strategically important waterway. Oil prices eased on hopes that disruptions to global energy supply routes could gradually improve, although Brent crude prices remain well above pre-conflict levels.
Nvidia earnings expected to shape AI sentiment
Beyond geopolitical developments, investor attention remains firmly focused on Nvidia’s quarterly results due after the close of trading on Wall Street.
Nvidia has become one of the key barometers for the AI industry, as major technology companies continue investing heavily in the infrastructure required to support artificial intelligence systems. Expectations for the semiconductor giant remain elevated given its dominant position in AI data centre chips.
Analysts at Vital Knowledge said:
“[S]entiment is bullish around Nvidia given continued strength in overall data center capex spending, the dominance of its core data center GPU franchise, the company’s growing networking footprint, and recent product launches (Groq and Vera) aimed at fending off competition,”.
However, analysts also highlighted growing concerns around competition from rival chips developed by Google LLC and Amazon.com, Inc., as well as questions surrounding the long-term sustainability of rapid AI spending growth and rising memory chip costs.
SpaceX IPO speculation intensifies
Markets are also closely watching developments surrounding a potential initial public offering of SpaceX, the rocket company founded by Elon Musk.
Reports suggest SpaceX could target a flotation date of 12 June in what may become the largest IPO ever. According to analysts at Vital Knowledge, the company could release its IPO prospectus as early as Wednesday, offering investors greater visibility into its business operations and ownership structure.
Investors await Federal Reserve minutes
Attention later in the session will also turn to minutes from the Federal Reserve’s April policy meeting, which may shed further light on the challenges facing incoming Fed Chair nominee Kevin Warsh.
At the meeting, policymakers kept interest rates unchanged while expressing concern over the inflationary implications of the Iran conflict. Officials were reportedly divided over whether to continue signalling future rate cuts.
Outgoing Fed Chair Jerome Powell also indicated last month that he intends to remain on the Federal Reserve Board until early 2028, citing “my concern […] about the series of legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors.”