Wall Street rebounds ahead of Nvidia results; oil prices fall; ASX set to jump
Stan Choe
US stocks are recovering after pressure from the bond market eased on Wall Street and oil prices gave back some of their big gains.
The S&P 500 climbed 0.9 percent for its first gain in four days and approached an all-time high last week. The Dow Jones was up 603 points, or 1.2 percent, and the Nasdaq composite was up 1.3 percent. The Australian share market is poised to move higher, with futures at 4.55am AEST pointing to a gain of 116 points, or 1.4 per cent, at the open. The Australian dollar was trading at 71.61¢.
Stocks rose as bond market yields fell; There has been some relief following the recent rapid rises that have shaken stock markets around the world. The yield on the 10-year Treasury note fell to 4.57 percent from 4.67 percent at the end of Tuesday; This is a significant move for a market that measures things in hundredths of a percentage point.
The 10-year Treasury yield, along with other yields around the world, was hovering below 4 percent before the war with Iran began, due to concerns that the war would keep oil prices high, among other factors. Inflation concerns have not only eliminated the possibility of the Federal Reserve cutting interest rates this year, but have also increased the risk that central banks may be forced to raise interest rates in 2026.
High yields slow economies and put pressure on the prices of stocks, cryptocurrencies, and all kinds of other investments. In addition to increasing mortgage rates, they could also reduce companies’ borrowing to build the AI data centers that have recently fueled the growth of the US economy.
Yields decreased as oil prices fell further on Wednesday. The price of a barrel of Brent crude fell 5.3 percent to $105.36, but remained well above its pre-war level of roughly $70. Prices have been moving as hopes rise and fall that the United States and Iran can reach a deal that would allow a full resumption of oil deliveries from the Persian Gulf to customers around the world.
A report showing inflation in the UK was less bad than economists expected also helped calm yields around the world.
Technology stocks helped lift Wall Street as yields eased.
Nvidia became the strongest force lifting the S&P 500, rising 1.6 percent. The company will announce its latest quarterly results after trading closes for the day, which will likely be the market’s main event. The chip company routinely beats analysts’ profit expectations every quarter thanks to insatiable demand for AI, showing how AI stocks and the broader U.S. market may decide whether it can sustain its record-breaking rally.
Other technology stocks leading the market on Thursday included Advanced Micro Devices, up 7.3 percent, and Intel, up 6.7 percent.
Smaller companies may feel greater relief from lower returns than their larger rivals because many of them need debt to grow. The Russell 2000 index of smallest U.S. stocks rose 2.2 percent, more than double the gain of the S&P 500, which measures the largest U.S. stocks.
The company behind TJ Maxx, Marshalls and other stores that help drive the market also rose 5.7 percent in the latest quarter after posting stronger profits and revenue than analysts expected. TJX CEO Ernie Herrman said the current quarter is off to a good start and the low-priced retailer raised its revenue and profit forecasts for this year.
Red Robin Gourmet Burgers rose 20 percent and Cava Group gained 4.1 percent after better-than-expected profit reports. Such results raise hopes that households can continue spending and drive the economy even as they struggle with high gas prices and widespread frustration with economic conditions.
Most major U.S. companies also reported better profits than analysts expected at the start of 2026, helping stocks hit records. Stock prices tend to follow the path of corporate profits over the long term.
On Wall Street’s loser side was Target, which fell 5.7 percent even though the retailer reported better profits and revenue in the latest quarter than analysts expected. New CEO Michael Fiddelke is trying to turn the company around and increase revenue.
Expectations for the company’s performance may be even higher, with Target’s shares gaining more than 30 percent for the year to date, quadrupling the gains of the S&P 500.
In foreign stock markets, indices rallied in Europe following the weak closing in Asia. Tokyo’s Nikkei 225 index fell 1.2 percent as the yield on the 10-year Japanese government bond fell but remained near its highest level since 1997.
