Stocks Snap Losing Streak as Oil Plunges on Iran Hopes, All Eyes on Nvidia
MarketDash
Wall Street catches a bid as crude tumbles 5% on revived U.S.-Iran truce talks, easing inflation fears and setting the stage for Nvidia's earnings after the bell.
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U.S. stocks halted a three-day losing streak at midday Wednesday as oil prices sank more than 5% on revived hopes of a U.S.-Iran de-escalation, easing the energy-driven inflation shock that has dogged risk assets all week and setting the stage for NVIDIA Corp. (NVDA) earnings after the close.
President Donald Trump said the U.S. is in the "final stage" of negotiations with Iran, while Iran's Foreign Ministry said exchanges between Tehran and Washington are still ongoing and continue to be based on Iran's 14-point proposal.
WTI crude tumbled 5.1% to $98.83 a barrel, retreating from triple-digit territory after closing above $104 on Tuesday. Brent crude sank 5.3% to $105.39, although both benchmarks remain more than 70% higher year-to-date as the Strait of Hormuz stand-off continues to keep prices roughly 50% above pre-war levels.
Long-end Treasury yields eased modestly. The 10-year yield slipped eight basis points to 4.59% after touching a 16-month high of 4.70% on Tuesday, while the 30-year yield retreated seven basis points to 5.12% from an 18-year peak.
Markets are still pricing roughly 50% odds of a Federal Reserve rate hike in December, and traders are awaiting the FOMC minutes due later in the session for further guidance.
Across U.S. equity markets by midday Wednesday, gains were broad-based. The S&P 500 climbed 0.9% to 7,418, on track to halt a three-day losing streak.
Among the day's biggest single-stock movers, Astera Labs Inc. (ALAB) jumped 14.5% after Evercore ISI lifted its price target to $297 from $215, citing accelerating AI-connectivity demand.
Enphase Energy Inc. (ENPH) climbed 11.1% in sympathy with the broader clean-energy rebound after pre-orders opened earlier this month for its IQ9S-3P Commercial Microinverter.
Wayfair Inc. (W) rallied 10.7% as the home retailer extended gains on its first-quarter print, which showed a 7.4% revenue jump and a return to active-customer growth. Alaska Air Group Inc. (ALK) surged 10.1% with the rest of the carrier complex on the oil drop, leading peer gains.
The earnings tape produced sharp moves on both sides. Target Corp. (TGT) fell 3.9% even after delivering a first-quarter EPS of $1.71 against the $1.35 consensus and revenue of $25.4 billion, with investors zeroing in on rising SG&A costs and a lower operating margin despite a raised full-year sales outlook.
Analog Devices Inc. (ADI) tumbled 7% after the second-quarter EPS of $3.09 topped the $2.90 estimate and revenue beat at $3.62 billion, but the third-quarter EPS guidance of $3 was viewed as light. Hasbro Inc. (HAS) slid 7.5% as investors fixated on second-quarter disruption from a previously disclosed cyber breach despite a first-quarter EPS beat at $1.39.
Reddit Inc. (RDDT) sank 6.40% as the stock continued to feel pressure from Phillip Securities' May 7 downgrade to Accumulate from Buy and lingering concerns over ad-spend visibility.
