OPENING CALL
Stock futures leaned higher Thursday as optimism for a breakthrough in U.S.-Iran talks and pending blockbuster IPOs generated positive momentum.
The Dow was leading the premarket gains with the S&P 500 and Nasdaq both hovering around flat.
Brent crude turned lower, dropping below $105. Trump said Wednesday that negotiations with Iran were in their "final stages."
Meanwhile, traders were increasing their bets on interest-rate hikes following the release of Federal Reserve minutes .
The market prices a 70% chance of a 25bp rate rise by December and fully prices a move by March 2027, LSEG data showed.
Nvidia reported record sales and income aftter Wednesday's close, but investors weren't blown away by the guidance.
"Despite the impressive growth and a 75% gross margin, that moderate sales guidance beat drew a lukewarm response from investors," said Deutsche Bank analyst Jim Reid.
Nasdaq gains in the previous session were helped by positivity surrounding the sprint for SpaceX, Anthropic and OpenAI to go public .
Stocks to Watch
Nvidia was down in volatile premarket trade after announcing an $80 billion share buyback plan and an increase in its quarterly cash dividend.
SoftBank surged nearly 20% in Japan after news that OpenAI, one of its key investments, was preparing to file for an IPO within days or weeks.
Watch For:
U.S. Housing Starts for April, U.S. Weekly Jobless Claims, earnings from Walmart, Deere & Co, Zoom, Workday
Today's Top Headlines/Must Reads:
- Even at $5 Trillion, Nivida Is Underappreciated
- Global Economy Slowing as Middle East Conflict Bites, Surveys Show
- The Dangerous Brew That's Rattling Bond Markets
MARKET WRAPS
Forex:
The dollar rose supported by expectations that the Fed could raise interest rates.
The euro stayed lower after a weaker-than-expected flash eurozone purchasing managers' survey for May.
The composite PMI fell to a 31-month low of 47.5 in May, from 48.8 in April.
Bonds:
Treasury yields edged higher, as oil prices moved up slightly in Asian trade, but stayed below highs reached earlier this week.
Energy:
Oil prices slipped in volatile trade.
"The oil market remains overly sensitive to Iran-related headlines , with participants continuing to pin considerable hope on reports that talks between the U.S. and Iran are progressing," ING said.
"We've been in this situation multiple times before, which ultimately led to disappointment."
HSBC Global Investment Research said the oil market appeared to be rebalancing , with prices relatively contained despite the disruption stemming from the Middle East conflict.
Julius Baer said oil was likely to trade meaningfully lower later this year , as the current crisis should follow the historical pattern of a short-lived but intense price shock.
Metals:
Gold prices fell after the Fed minutes.
"Gold has traded within a relatively narrow range in recent weeks and remains down around 14% since the war began in late February," MUFG said.
Market watchers said gold would likely need to see a significant easing in oil-driven inflation pressures or fresh evidence that slowing growth risks are beginning to outweigh inflation concerns to regain upward momentum.
TODAY'S TOP HEADLINES
SpaceX Fires Starting Gun on Its Blockbuster IPO
The clock is officially ticking on SpaceX's huge stock offering.
SpaceX on Wednesday revealed new details about its financials and how Chief Executive Elon Musk will try to grow a sprawling enterprise dedicated to advancing cutting-edge technologies in space and back on Earth.
Nvidia Rides Blistering Chip Sales to Another Record Quarter
Chip giant Nvidia reported record sales and income Wednesday, driven by surging demand for data-center computing and the astronomical rise of artificial-intelligence agents.
Sales for the April quarter reached $81.6 billion, up 85% from the year-earlier period and beating the $78.9 billion that analysts polled by FactSet had forecast by 3.4%. Net income was $58.3 billion for the quarter, more than three times the year-earlier result and 36.5% higher than the $42.9 billion analysts had predicted.
AMD to Invest More Than $10 Billion in Taiwan's Chip Industry
Advanced Micro Devices is gearing up to invest more than $10 billion across Taiwan's semiconductor sector to meet growing demand for artificial-intelligence infrastructure.
Under the investment plan, the Nasdaq-listed company will tap the Taiwanese industry's expertise in high-performance computing-from foundries to chip assembly and test providers, to scale its production.
Tesla Announces Rollout of Fully Self-Driving Tech in China
After a long wait, Tesla has announced the launch of its fully self-driving technology in China.
The move follows years of efforts to get approval, and comes on the heels of Elon Musk's visit to Beijing as part of a business cohort that accompanied President Trump at his summit with Chinese leader Xi Jinping.
Intuit to Cut 17% of Staff, Invest in 'Big Bets'
Intuit plans to lay off 17% of its workforce, or about 3,100 employees, and invest the savings in "big bets" as it makes artificial intelligence a centerpiece of its business.
The maker of TurboTax and QuickBooks said Wednesday that slimming down its staff would improve efficiency companywide. The restructuring is expected to cost about $300 million to $340 million, most of which will be booked in the current summer quarter.
Global Economy Slowing as Middle East Conflict Bites, Surveys Show
Business activity in Europe and Asia has slowed in May as energy costs have risen and new orders cooled, an indication that the global economy has been weakened by the fallout from the conflict in the Middle East.
The war has led to a sharp decline in shipments through the Strait of Hormuz, through which a fifth of the world's oil and natural gas supplies usually transit. As a result of reduced supplies, energy prices have jumped around the world.
The Dangerous Brew That's Rattling Bond Markets
The question for bond markets isn't why yields rose so much in the past week, but why this didn't happen sooner.
Government borrowing-everywhere, and especially in the U.S.-has been out of control for years. Inflation in the U.S. has been stuck above the Federal Reserve's 2% target since 2022. Add in heavy corporate borrowing to fund the AI build-out, and you wonder why long-term interest rates aren't higher.
Bank of Japan Policymaker Signals That Rate Hike Might Be Approaching
A Bank of Japan policymaker has warned that Middle East tensions could cause underlying inflation to overshoot the BOJ's target, offering another signal that rate hikes are around the corner.
"It is reasonable for the bank to raise the policy interest rate at an appropriate pace to address high inflation while also considering the trade-offs for the economy," policy board member Junko Koeda told business leaders in the southern prefecture of Fukuoka on Thursday.
With Castro Indictment, Trump Bets His Venezuela Playbook Will Work in Cuba
With the murder indictment of Cuban leader Raúl Castro, President Trump is applying the playbook he used to upend Venezuela's leadership to force Havana's Communist government into submission.
Trump has pointed to Venezuela as a model for wielding power in America's backyard after the U.S. military blasted through the defenses around its leader Nicolás Maduro and arrested him on drug-trafficking charges. Maduro's successor, his Vice President Delcy Rodriguez, has delivered on U.S. demands, a scenario Trump has implied could be replicated in Cuba.
The Longest Internet Blackout in History Is Crippling Iran's Economy
Iranians are enduring the longest and most intense internet blackout in history, compounding an economic crisis that sparked nationwide protests in December.
For nearly three months, businesses have been disconnected from clients and suppliers. Merchants have struggled to work with longstanding international business partners. Many businesses have closed, hurling more Iranians into unemployment.
Write to gareth.mcpherson@wsj.com
TODAY IN CANADA
Earnings:
Lightspd Comm
Silvercorp Mtls
Economic Indicators $(ET)$:
Nothing major scheduled
Stocks to Watch:
Molson Coors Beverage Prices $1.5B Senior Notes; Offering $500M 4.900% Senior Notes Due 2031; Offering $1B 5.500% Senior Notes Due 2036; Expects Offering to Close on or About May 27; Plans to Use Net Proceeds of the Offering for General Corporate Purposes; Announces Pricing of Private Placement Offering in Canada by Molson Coors International; Molson Coors Beverage: Wholly Owned Indirect Subsidiary Offering C$500M 4.300% Senior Notes Due 2033; Offering Expected to Close on or About May 27; Molson Coors Beverage: Intend to Use the Net Proceeds of the Offering for General Corporate Purposes
Silvercorp Announces Extension of Mining License for the Tulkubash/Kyzyltash Gold Projects, Kyrgyzstan
Other News:
Canada Has 'Fallen Way Behind' on Port Logistics, Carney Says
Market Talk:
Canada Has the Energy Base for AI Growth, It Just Isn't Using It
Expected Major Events for Thursday
00:30/JPN: May Japan Flash Manufacturing PMI
07:15/FRA: May France Flash PMI
07:30/GER: May Germany Flash PMI
08:30/UK: 1Q Mortgage and landlord possession statistics
08:30/UK: May Flash UK PMI
09:00/ITA: Mar Balance of Payments
10:00/UK: May CBI Industrial Trends Survey
10:00/FRA: 1Q OECD Quarterly National Accounts: GDP growth
12:30/US: May Philadelphia Fed Business Outlook Survey
12:30/US: Apr New Residential Construction - Housing Starts and Building Permits
12:30/US: 05/16 Unemployment Insurance Weekly Claims Report - Initial Claims
(MORE TO FOLLOW) Dow Jones Newswires
May 21, 2026 06:16 ET (10:16 GMT)
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