Wall Street points toward gains as oil prices fall and bond yields ease

U.S. stock futures opened higher on Wednesday, with S&P 500 futures up 0.4%, Dow Jones futures rising 0.2%, and Nasdaq futures jumping 0.7%. The shift followed a dip in bond yields, as the 10-year Treasury yield eased to 4.64% overnight, though it remains elevated compared to pre-Iran war levels. Higher yields have increased borrowing costs for mortgages and corporate projects, including AI data centers, which could slow economic growth. Oil prices provided some relief, with U.S. benchmark crude falling $2.65 to $101.50 per barrel and Brent crude dropping $2.89 to $108.39. However, gasoline prices in the U.S. continued climbing, with the average gallon now at $4.56—a 43% increase from last year. Despite higher energy costs, many large U.S. companies have reported stronger-than-expected profits, helping stock indexes reach record levels. Target’s shares rose 2% after the retailer reported a surge in first-quarter sales and raised its 2026 revenue outlook. The company, under its new CEO’s turnaround plan, expects continued momentum. Investors will also focus on Nvidia’s after-hours earnings report, as its results could shape tech stock and broader market trends. Nvidia’s stock fell 0.8% Tuesday but was up 1.8% in premarket trading Wednesday. European markets saw modest gains, with Germany’s DAX up 0.5% and France’s CAC 40 rising 0.6%, while Britain’s FTSE 100 remained flat. Asian markets struggled, with Japan’s Nikkei 225 dropping 1.2% and South Korea’s Kospi falling 0.9% after a broad sell-off. China’s Hong Kong Hang Seng lost 0.6%, and Australia’s S&P/ASX 200 declined 1.3%. Japan’s 10-year bond yield slipped below 2.8% but stayed near its highest level since 1997.