HG MARKETS: 

U.S. stock futures traded near flat levels during Wednesday’s session as investors monitored developments surrounding the Iran conflict while preparing for key corporate earnings and upcoming Federal Reserve minutes. Nasdaq 100 futures led gains among major indices, rising 0.4%, while S&P 500 futures added 0.2% and Dow Jones futures edged 0.1% higher in early trading.

Markets remained cautious after Wall Street closed lower in the previous session, with equities pressured by a continued sell-off in U.S. government bonds. Rising Treasury yields reflected growing concerns that the ongoing Iran conflict could intensify global inflationary pressures and influence central banks to maintain higher interest rates for longer. The yield on the 30-year U.S. Treasury bond climbed to levels last seen during the global financial crisis, highlighting investor concerns over the broader economic outlook and inflation risks tied to elevated energy prices.

Despite geopolitical tensions, hopes for a potential diplomatic resolution between the United States and Iran continued to support market sentiment. U.S. President Donald Trump stated on Tuesday that the Iran conflict could end “very quickly.” He also said earlier in the week that planned additional attacks on Iran had been postponed following requests from three Gulf countries. Vice President JD Vance also expressed optimism regarding negotiations, stating that Tehran appeared willing to reach an agreement.

Meanwhile, shipping activity through the Strait of Hormuz showed signs of improvement after reports indicated that two Chinese-flagged oil supertankers had exited the strategic waterway. A South Korean-flagged crude carrier was also reportedly leaving the region, easing concerns over severe disruptions to global energy supply routes. Oil prices moved lower on the developments, although Brent crude remained well above levels seen before the conflict escalated earlier this year.

Investor attention is now firmly focused on quarterly earnings from semiconductor giant Nvidia, scheduled for release after the U.S. market close.  Nvidia remains a central player in the global artificial intelligence sector, with its advanced chips widely used in AI infrastructure and data center expansion. The company’s results are expected to provide important insight into the pace of AI-related spending by major technology firms. Expectations surrounding the earnings release remain elevated as large technology companies continue investing heavily in AI infrastructure, cloud computing capabilities, and next-generation data centers.

At the same time, markets are also closely watching developments surrounding a potential initial public offering from Elon Musk’s SpaceX. Media reports suggest the company could target June 12 for a possible listing, which may become one of the largest IPOs in market history. Reports also indicate that IPO-related documents could be released in the coming days, providing investors with further details regarding the company’s operations and ownership structure.

Beyond corporate developments, investors are awaiting the release of minutes from the Federal Reserve’s April policy meeting for additional clarity on the future direction of U.S. monetary policy. During the meeting, Federal Reserve officials left interest rates unchanged while acknowledging concerns regarding the inflationary impact of the Iran conflict. Policymakers were reportedly divided over the outlook for future interest rate cuts. Federal Reserve Chair Jerome Powell also stated last month that he intends to remain on the Fed’s Board of Governors through the completion of his term in early 2028, citing concerns over preserving the central bank’s independence amid increasing political pressure.

Markets are expected to closely analyze the upcoming Fed minutes for signals regarding inflation expectations, interest rate policy, and the broader economic outlook in the months ahead.