US stocks edged higher Wednesday as easing oil prices and a pullback in Treasury yields helped investors regain confidence after several volatile sessions driven by inflation fears and geopolitical tensions. The S&P 500 climbed 0.8%, while the Nasdaq Composite led the major indexes with a 1.2% gain as traders rotated back into technology and artificial intelligence names ahead of Nvidia’s closely watched earnings report after the closing bell.
The Dow Jones Industrial Average also rose roughly 0.8%, recovering from a choppy start to the session as markets welcomed signs that crude oil shipments were continuing through the Strait of Hormuz. The rebound came as bond markets stabilized following a sharp sell-off that had pushed the 30-year Treasury yield above 5% earlier this week, intensifying concerns that sticky inflation could keep the Federal Reserve in a hawkish stance longer than expected.
Market Movers
- AMC Entertainment (AMC) +9% — Shares jumped after CEO Adam Aron disclosed that he purchased 250,000 shares worth roughly $344,000, boosting his directly held stake to more than 2.43 million shares. Aron said he has “enormous confidence” in AMC’s future and the 2026-2027 box office slate, reinforcing optimism among the company’s retail investor base.
- TJX Companies (TJX) +6% — The discount retailer rallied after posting stronger-than-expected first quarter results fueled by bargain-hunting consumers and strong HomeGoods demand. Revenue rose 9.2% year over year to $14.32 billion, while the company also raised its full-year guidance for profit, comparable sales, and pretax margins.
- CAVA Group (CAVA) +4% — Shares gained after the Mediterranean fast-casual chain reported 32% revenue growth and robust same-store sales gains. Traffic trends remained strong, prompting management to raise its full-year outlook for comparable sales growth and restaurant openings.
- Roblox (RBLX) +3% — The gaming platform moved higher after authorizing a new $3 billion stock repurchase plan. The company said the buyback program would help offset employee stock dilution while preserving flexibility for future investments and expansion initiatives.
- Target (TGT) -7% — Shares sank despite topping Wall Street’s earnings expectations as investors focused on mounting margin pressures and rising operating expenses. While store traffic surged and sales growth remained strong, Target’s operating margin contracted sharply, raising concerns about profitability in an inflationary environment.
- Viavi Solutions (VIAV) -6% — The networking and communications technology company fell after announcing a $500 million public stock offering. Investors reacted negatively to the dilution tied to the capital raise, even as management said proceeds would largely be used to reduce debt.
- Intuit (INTU) -4% — Shares declined after reports emerged that the company plans to cut roughly 17% of its workforce as part of a restructuring tied to artificial intelligence initiatives. The layoffs come as Intuit increases investments in AI-powered features across TurboTax, QuickBooks, and Mailchimp.
Oil Prices Retreat, Giving Markets Relief
One of the biggest catalysts supporting Wednesday’s rally was the sharp decline in oil prices. Brent crude and West Texas Intermediate both tumbled roughly 4%-5% after reports indicated multiple oil tankers successfully navigated the Strait of Hormuz overnight, easing fears of a major supply disruption tied to escalating Middle East tensions.
The decline in energy prices helped cool some of Wall Street’s inflation anxiety after several weeks of rising crude prices fueled expectations that the Federal Reserve may need to keep interest rates elevated for longer. Investors have been highly sensitive to any developments involving Iran and regional shipping routes, given their potential impact on global energy markets.
Bond Yields Pull Back Ahead of Fed Minutes
Treasury yields also moved lower Wednesday after surging to multi-year highs earlier this week. The benchmark 10-year Treasury yield eased back toward 4.5%, while the 30-year yield slipped from levels above 5%, helping support growth stocks and the broader technology sector.
Markets are now awaiting the release of minutes from the Federal Reserve’s latest policy meeting for clues on how central bank officials are viewing inflation risks, labor market conditions, and the path forward for interest rates. Investors are increasingly searching for evidence that policymakers may eventually pivot away from their hawkish stance if economic data begins to soften.
Nvidia Earnings Take Center Stage
Wall Street’s attention remains firmly fixed on Nvidia, whose earnings report after the bell is expected to be one of the most important market events of the quarter. The AI chip giant has become a central driver of the broader stock market rally, and investors are looking for fresh evidence that artificial intelligence spending remains robust despite concerns over valuations and macroeconomic risks.
Options markets are pricing in a move of roughly 5.5% in either direction following the report, underscoring just how influential Nvidia’s results could be for the technology sector and the broader market narrative surrounding AI demand.
Looking Ahead
Investors now face a critical stretch that could determine whether markets can sustain their rebound from recent volatility. Nvidia’s earnings, upcoming economic data, and continued developments in the Middle East are likely to shape sentiment in the days ahead.
At the same time, traders will continue monitoring Treasury yields and oil prices closely, as both remain key drivers of inflation expectations and Federal Reserve policy outlooks. If energy prices continue to ease and yields stabilize, markets could find room to extend gains. But any renewed geopolitical escalation or hotter-than-expected inflation data could quickly reignite volatility across equities.