Stocks in Australia and South Korea opened lower, while Japan’s market is closed for a public holiday. Nasdaq 100 Index futures edged 0.4% up after the underlying gauge declined 1% on Tuesday post a report that OpenAI had failed to meet its own goals.
Treasuries fell on Tuesday, lifting yields to the highest levels in several weeks, as climbing oil prices drove up inflation expectations and curbed bets for Federal Reserve interest-rate cuts ahead of Wednesday’s policy announcement. Trading in cash Treasuries is closed during Asian hours due to the holiday in Japan. Brent crude opened down 0.5% to $110.75 a barrel Wednesday, set to snap seven days of gains.
Renewed concerns about AI investments and a surge in oil prices recently set up a crucial trading day, with megacap technology companies reporting while investors look to the Fed for clues on the direction of interest rates. Technology companies have helped global equities rally in recent weeks to erase losses from the Middle East conflict, making Wednesday’s earnings announcements crucial for sustaining the rally.
Big techs representing about a quarter of the S&P 500’s value are getting ready to release their earnings. Alphabet Inc., Microsoft Corp., Amazon.com Inc. and Meta Platforms Inc. report Wednesday, followed by Apple Inc. a day later.
Tech earnings have been largely shielded from the disruptions of the Iran war. The sector’s results are expected to have grown 41% in the first quarter, according to data compiled by Bloomberg Intelligence.
Elsewhere, the United Arab Emirates will leave OPEC next month, in a significant blow to the group that raises questions about its future. The UAE’s exit May 1 after six decades of membership is the latest indication of how the conflict is reshaping global energy markets.
Meanwhile, President Donald Trump said Iran has asked the US to lift a naval blockade of the Strait of Hormuz, while the two sides negotiate an end to the two-month war.
Mediators in Pakistan expect Tehran to submit a revised proposal in the next few days, CNN reported.
Traders will also be monitoring Australian economic data due later Wednesday. Inflation is likely to show a sharp acceleration in the first quarter, driven largely by higher fuel costs from the Iran war shock, according to Bloomberg Intelligence.
With inputs from BloombergAlso Read: Trade Setup for April 29: Nifty steps into May series with a 1,000-point range and 24,000 holding the key
