OPENING CALL
Stock futures were up as the global bond selloff took a breather.
Investors were latching onto hopeful signs that oil could begin flowing again through the Strait of Hormuz.
Yields on government bonds in the U.S., Germany and Japan all ticked lower--though they remain elevated--with the 10-year Treasury yield hovering around 4.64%
Brent crude was down more than 2%, while WTI futures fell 2% after three tankers, two Chinese and one South Korean, crossed the strait overnight.
Trump suggested yesterday that the war with Iran could end very quickly, though he also warned that the U.S. could resume military strikes.
Meanwhile the selloff in global government bonds offered ideal conditions for the dollar to strengthen , ING said, after the greenback reached a six-week high against a basket of currencies.
"Unlike in 2025, this selloff is being driven by inflation concerns rather than fiscal fears, making it unambiguously dollar positive."
ING's measure of the dollar's safe-haven appeal is the strongest since late 2022 and the second-highest reading in its dataset dating back to 2005.
The dollar could rise further unless genuinely constructive news emerges from the Iran war, it added.
Nvidia rose premarket and Intel and Micron Technology also gained 3.65% and 4% respectively and semiconductor stocks were also lifted in Europe ahead of Nvidia's earnings.
Despite its heft, Swissquote said that the company's earnings were less important for broader AI sentiment now because investors were increasingly focused on memory chips.
"Nvidia's earnings no longer carry the same existential weight they did at the very beginning of the AI craze."
Also in the news, China agreed to purchase 200 Boeing jets and resume imports of some U.S. beef products , one of the clearest signs yet of easing trade tensions following last week's summit between Trump and Chinese leader Xi Jinping.
And European lawmakers reached a provisional deal to remove some import tariffs on U.S. goods, as part of the trade agreement signed last summer, ahead of a deadline Trump set for ramping up tariffs on European cars.
If all goes according to plan, SpaceX's IPO paperwork could be made public this afternoon.
Stocks to Watch
Cava reported 32% sales growth and boosted its full-year guidance, citing increased traffic and the restaurant chain's value proposition. Shares gained Tuesday after hours.
Mayville Engineering said it launched an underwritten public offering to repay debt under a credit facility. Shares sank after hours.
Red Robin Gourmet Burger reported a smaller decline in revenue and same-store sales than analysts were expecting. The stock rose Tuesday 15% after the bell.
Viavi Solutions said it would offer $500 million of stock to repay debt. Shares fell 7.1% after hours Tuesday.
Watch For:
EIA Weekly Petroleum Status Report; earnings from Nvidia, Target
Today's Top Headlines/Must Reads:
-Flurry of Suspicious Oil Trades Worth $800 Million Triggers Regulatory Probe
-Taiwan Presses Its Case After Trump Puts Arms Sales in Question
-How Iran Got to the Nuclear Threshold on the Watch of Three U.S. President
MARKET WRAPS
Forex:
The dollar rose to a six-week high against a basket of currencies as markets increasingly bet on the Fed raising interest rates, MUFG said, adding that there was scope for yields to move further higher.
While the Fed will ultimately raise rates less than many other G-10 central banks, market pricing for rate rises remains relatively low considering the risk of a further jump in oil prices, it added.
The euro fell to a near six-week low against the dollar and faced further declines as markets seemed to have raised the bar for trading on positive Middle East headlines, ING said.
While the risk of an abrupt euro selloff was more contained due to more balanced positioning, the macro environment has clearly turned less supportive for the currency.
"The next support to watch is 1.1570," it added.
UOB said the euro's downward momentum against the dollar was building , based on charts, adding that the support level to watch was the ascending daily trendline, which was at 1.1540.
Sterling showed a muted reaction to lower-than-expected U.K. April inflation data as the decline in price pressures was driven by favorable base effects, Convera said.
"The largely mechanical nature of April's highly anticipated decline may lead markets to discount the softness of the print."
Bonds:
Treasury yields edged lower.
The Federal Reserve's minutes from the April meeting are due later in the day.
"We will look out for forward guidance on the balance sheet operations, which we did not receive during the meeting itself," Danske Bank said.
Nuveen affirmed its year-end forecast for the 10-year Treasury yield at 4.10%.
"Barring a prolonged geopolitical escalation, moderating services inflation and fading tariff effects should gradually pull core inflation lower by year-end."
This provides the Fed with scope for one rate reduction--though that remains a minority market view, it added.
Even if the front end of the curve reprices lower, the long end is likely to remain constrained by ballooning fiscal deficits and a structurally higher term premium environment, keeping curve steepening pressures intact.
Nuveen said that Japan presented the most consequential structural shift for global bond markets .
Energy:
Oil prices extended losses, falling more than 2% as the Trump administration continued to pressure Tehran to agree to U.S. demands to end the conflict.
Meanwhile, the U.K. government watered down sanctions on Russia, allowing imports of diesel and jet fuel refined abroad from Russian oil to enter the country as the near-closure of the Strait of Hormuz continues to squeeze supply.
Earlier this week, the U.S. extended a sanctions waiver allowing countries to purchase Russian oil currently stranded at sea.
Meanwhile, the U.S. seized an Iran-linked oil tanker in the Indian Ocean.
Analysts at MUFG said falling U.S. crude inventories and persistent geopolitical uncertainty continued to support prices above $100 a barrel.
However, rising global bond yields and concerns about weaker economic growth are limiting further upside momentum
Metals:
Gold extended the previous session's losses on a firmer dollar as a lack of progress in Iran talks fuels inflation fears and expectations of higher interest rates.
"Surging energy prices linked to the Iran war triggered a broad selloff in global bond markets and pushed U.S. 30-year Treasury yields to levels last seen during the 2007 financial crisis period," MUFG said.
"Gold has now fallen around 15% since the conflict began."
TODAY'S TOP HEADLINES
The Ice-Cold Civil War Between Diet Coke and Coke Zero Drinkers
For decades, Diet Coke has been a durable pop culture icon, as much a symbol of boardroom swashbuckling as high fashion society. Its buzzy 1980s origins featured endorsements from celebrities including Paula Abdul, Whitney Houston and Demi Moore. More recently, limited-edition Diet Coke cans were released to coincide with "The Devil Wears Prada" sequel.
The soda is also beloved across generations. It has been given the mantle of "fridge cigarette" by a Gen Z cohort who, according to Cosmopolitan, want to "blow off steam without the actual fumes" and is repped by quintessential baby boomers, including Bill Gates in a TikTok he posted of himself re-creating Warren Buffett's recipe for Dusty Diet Coke. (That's a bizarro mix of the soda, vanilla ice cream, chocolate syrup and malted milk powder.)
Stellantis, Dongfeng Plan New JV to Sell Voyah-Branded Cars in Europe
Jeep-maker Stellantis and Chinese partner Dongfeng Group plan to establish a new joint venture that will manufacture and sell Dongfeng vehicles in selected European markets.
The plan to produce Chinese cars in Europe is the second such deal Stellantis has announced in as many weeks, following its agreement to a tie-up with Leapmotor to produce its electric vehicles in Spain.
Samsung Management, Union Fail to Reach Deal in Last-Minute Talks
Samsung Electronics' management and its union leaders failed to reach a bonus-pay deal in last-minute talks aimed at averting a strike at the world's largest memory-chip maker.
Samsung's management said it couldn't accept the union's demands, which include performance-based bonuses even for employees at its unprofitable business units, the South Korean chip maker said Wednesday.
CSG's Earnings Rise on Strong Demand for Ammunition, Defense Equipment
Eastern European arms maker CSG posted rising revenue and earnings on continued strong demand for ammunition and defense equipment.
The Prague-based company said Wednesday that earnings before interest and tax rose 8.7% to 372 million euros ($431.8 million) in the first quarter, as revenue jumped 14% to 1.54 billion euros.
Alibaba Ramps Up AI Push With New Chip, Model Upgrades
Alibaba has been pushing hard to monetize its artificial-intelligence business. Its latest effort: a new AI chip aimed at rivaling offerings from Nvidia.
The Hangzhou, China-based company said Wednesday that the next generation of its high-end Zhenwu chip series, the M890, is three times more powerful than its predecessor, making it "exceptionally" suited for complex agentic AI workloads that demand extensive working memory.
Toll Brothers Says Its Average Home Prices Back Above $1 Million
Luxury homebuilder Toll Brothers said the average price of homes it completed sales on last quarter broke above $1 million for the first time since mid-2024.
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May 20, 2026 06:00 ET (10:00 GMT)
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