Nvidia Earnings Ahead as Oil Prices Slide and Bond Yields Ease
Global stocks rose on Wednesday as falling oil prices and easing bond yields boosted investor sentiment. Brent crude futures dropped for the third straight day, sliding over 2% to $86.45 per barrel, after Iran said it had restarted talks with Oman to manage the Strait of Hormuz.
The vital waterway, which handled a fifth of the world's traded oil before the conflict, has been at the center of tensions between Iran and the US. The prospect of more supply coming through the Strait pushed short-term bond yields lower, helping to ease inflationary worries.
MSCI's world stocks index was up 0.1%, with Europe's benchmark STOXX 600 pinned near a one-week high. Investors were also awaiting Nvidia's second-quarter earnings, which could provide insight into whether the massive AI spending boom is sustainable and profitable.
Nvidia has gained 14% this year, but analysts expect its sales to rise by 82.8% in the third quarter to $104.20 billion. The company's adjusted gross margin for the second and third quarters is expected to remain around 75%.