Stocks Rally, Oil Slides as Iran Talks Advance and Markets Brace for Nvidia Earnings After the Bell

NEW YORK — U.S. stocks rallied sharply Wednesday while oil prices fell as investors reacted to signs of progress in negotiations with Iran, easing fears of prolonged energy-market disruption and shifting Wall Street’s focus toward Nvidia Corp.’s closely watched earnings report due after the closing bell.

The Dow Jones Industrial Average surged more than 645 points, or 1.31%, while the S&P 500 gained 1.08% and the tech-heavy Nasdaq Composite climbed 1.54%, according to market data Wednesday afternoon. The broad rally snapped a recent stretch of market weakness driven by surging Treasury yields, geopolitical uncertainty, and concerns over the Federal Reserve’s policy outlook.

Oil prices posted one of their sharpest declines in recent weeks as traders grew more optimistic that tensions surrounding shipping routes through the Strait of Hormuz could ease if diplomatic negotiations continue progressing.

West Texas Intermediate crude fell 5.66% to settle near $98.26 per barrel, while Brent crude dropped 5.63% to approximately $105.02 per barrel.

The move marked a sharp reversal from earlier this week, when fears surrounding the Iran conflict and shipping disruptions pushed energy prices higher and added renewed inflation concerns across global markets.

Treasury yields also eased Wednesday after climbing earlier in the week to some of their highest levels in months. The benchmark 10-year Treasury yield pulled back after recently pushing above 4.13%, helping stabilize broader equity sentiment.

Wall Street’s attention now shifts almost entirely to Nvidia Corp., one of the world’s most valuable companies and the central driver of the artificial-intelligence investment boom that has powered markets over the past two years.

Nvidia is scheduled to report fiscal first-quarter earnings after the closing bell, with investors closely watching both revenue growth and forward guidance tied to AI infrastructure spending.

Options markets are implying one of the largest post-earnings swings in corporate history, with traders pricing in hundreds of billions of dollars in potential market-value movement following the report.

Analysts expect Nvidia to report approximately $78.8 billion in revenue alongside adjusted earnings of roughly $1.77 per share, driven primarily by continued explosive demand for AI chips and data-center infrastructure.

Wall Street remains focused on the company’s Blackwell architecture and future Vera Rubin platform, both viewed as critical to the next phase of enterprise AI expansion.

Jensen Huang, Nvidia’s founder and chief executive officer, has repeatedly emphasized that demand for AI infrastructure continues significantly outpacing supply as corporations, governments, and cloud providers race to expand computing capacity.

Shares of Nvidia rose roughly 2% during Wednesday’s regular trading session ahead of the report.

The retail sector also helped support market sentiment.

Lowe’s Cos. reported quarterly results ahead of Wall Street expectations, posting first-quarter revenue of approximately $23.1 billion and adjusted earnings per share of $3.03, topping analyst forecasts.

“Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.

Comparable sales rose modestly while online sales jumped more than 15%, signaling continued resilience in consumer spending despite elevated borrowing costs and inflation pressure.

Target Corp. also exceeded expectations, reporting stronger-than-expected quarterly earnings and raising portions of its full-year outlook, adding to optimism surrounding consumer demand.

The strong retail earnings helped counter concerns that elevated energy prices and higher interest rates were severely weakening household spending.

Meanwhile, Federal Reserve policy remained a major focus for investors throughout the session.

Minutes released Wednesday from the Federal Open Market Committee’s April meeting showed several policymakers discussing the possibility that additional interest-rate increases could become necessary if inflation remains persistently above the Fed’s 2% target.

The minutes revealed growing divisions inside the central bank, with some officials favoring a more hawkish policy posture due to elevated energy prices, tariffs, and inflation risks tied to geopolitical instability.

Markets have increasingly scaled back expectations for near-term rate cuts as inflation remains stubbornly above target and labor-market conditions continue holding relatively firm.

Several Wall Street firms have recently revised forecasts, now expecting the Federal Reserve to maintain restrictive policy for longer than previously anticipated.

Cross-asset trading reflected the broader shift in sentiment Wednesday.

The U.S. dollar remained firm following the Fed minutes, while gold continued attracting safe-haven demand despite the broader equity rally. Bitcoin traded relatively stable as risk appetite improved across financial markets.

For consumers and businesses, Wednesday’s market action delivered mixed but important signals.

Falling oil prices could eventually provide some relief at the gasoline pump if geopolitical tensions continue easing and global shipping routes stabilize. At the same time, the Federal Reserve’s increasingly hawkish tone suggests borrowing costs for mortgages, credit cards, auto loans, and business financing are unlikely to decline meaningfully in the near future.

The next major test for markets now rests almost entirely on Nvidia’s earnings report and forward guidance.

A strong beat-and-raise from Nvidia could reinforce investor confidence in the broader artificial-intelligence trade and potentially drive another leg higher in technology stocks. A weaker-than-expected outlook, however, could test a market already navigating elevated interest rates, geopolitical uncertainty, and increasingly cautious Federal Reserve messaging.

JBizNews Desk

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