U.S. stocks edge toward their first gain in 4 days after strong profit reports

U.S. stock indexes edged toward their first gain in four days on Wednesday, driven by stronger-than-expected quarterly earnings from major retailers. The S&P 500 rose 0.3%, while the Nasdaq composite climbed 0.6%, nearing its all-time high set last week. TJX Cos. Inc., operator of TJ Maxx and Marshalls, surged 5.4% after reporting profits and revenue above analyst forecasts, easing some pressure from bond market volatility. Target also advanced 2% following a 20% first-quarter sales jump and an upgraded 2026 revenue outlook, reinforcing its turnaround under new leadership. However, crude oil prices fell—U.S. benchmark crude dropped $2.65 to $101.50 per barrel—while gasoline prices inched up to $4.56 per gallon, 43% higher than last year. Despite high costs, consumer spending remains robust, supporting corporate earnings and market records. Investors will closely watch Nvidia’s after-hours earnings report, as its results could dictate whether tech stocks sustain their rally. The company, a heavyweight in the S&P 500, fell 0.8% Tuesday but rebounded 1.8% in premarket trading. Analysts expect Nvidia to exceed expectations, given its history of outperforming forecasts. Global markets showed mixed performance: Germany’s DAX rose 0.5%, France’s CAC 40 climbed 0.6%, and Britain’s FTSE 100 remained flat, while Asian markets declined. Japan’s Nikkei dropped 1.2%, Hong Kong’s Hang Seng fell 0.6%, and South Korea’s Kospi lost 0.9%. The 10-year Japanese government bond yield hit its highest level since 1997 at 2.8%, signaling persistent bond market unease. The bond market’s disquiet contrasts with corporate resilience, with many companies reporting strong profits despite economic challenges. Whether this momentum holds depends on earnings like Nvidia’s and consumer spending trends amid elevated gasoline prices and inflationary pressures.