US Stocks Supported by Lower Crude Prices and Decreased Bond Yields

Stocks have been climbing today, supported by weakness in crude oil prices. The S&P 500 Index is up 0.16%, the Dow Jones Industrial Average is up 0.12%, and the Nasdaq 100 Index is up 0.51%. E-mini S&P futures are up 0.15%, and September E-mini Nasdaq futures are up 0.45%. This trend is attributed to a decrease in crude oil prices, which has eased inflation expectations and lowered bond yields. Specifically, WTI crude oil is down more than 3% today, pushing the 10-year T-note yield down by 5 basis points to 4.65%.

The news that the US will be returning diplomats to Middle East embassies has also contributed to lower expectations of an escalation in the Iran war. This development has led to a decline in crude prices and eased concerns about inflation. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of 23%. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2.

Chipmakers and AI-infrastructure stocks are moving higher today, supporting gains in the broader market. Marvell Technology (MRVL) is up more than 5% to lead gainers in the Nasdaq 100, and Advanced Micro Devices (AMD) is up more than 3%. Cryptocurrency-exposed stocks are also rallying today, with Bitcoin (^BTCUSD) climbing to a 3.25-month high.