Market Movers Today: Nvidia Earnings, Oil Rises, Bond Worries, and Stellantis CEO Shake-Up

Tech sector on edge ahead of Nvidia results, while oil climbs on Russia concerns and Japanese bond auction stokes debt fears

1. Nvidia Earnings in Focus as AI Demand Faces Scrutiny

All eyes are on Nvidia’s Q1 earnings, due after the US market closes. The chipmaker is expected to post a 66% rise in revenue to $43 billion, driven by sustained demand from AI-heavy investments in data centres and cloud infrastructure.

However, attention is shifting to the company's forward outlook, particularly:

• Impact of US export restrictions on China
• Transition from AI training to inference, reducing chip demand
• Rising interest in low-power AI models

Despite massive growth, Nvidia shares have underperformed post-earnings in recent quarters due to sky-high expectations. Traders are bracing for volatility, with defensive bets increasing across the semiconductor sector.

2. US Futures Ease Ahead of Nvidia and Fed Minutes

US stock futures dipped slightly in early Wednesday trading after Tuesday’s strong gains, driven by Trump’s delay of 50% tariffs on EU imports until 9 July.

• S&P 500 futures down 0.2%
• Nasdaq 100 futures down 0.1%
• Dow futures down 0.2%

Investors await Nvidia’s report along with earnings from Macy’s, Abercrombie & Fitch, and Dick’s Sporting Goods. Focus will also be on the Fed’s May meeting minutes, with markets looking for clues on interest rate direction.

3. Japanese Bond Auction Sparks Debt Concerns

Investor attention turned to global bond markets after demand for Japan’s 40-year bond auction hit its lowest level since November. The bid-to-cover ratio dropped to 2.2 from 2.9, signalling reduced investor appetite.

The move echoes recent weak demand in US bond auctions, where rising debt levels and political wrangling over tax and spending have intensified fiscal fears. Moody’s recently downgraded the US credit rating, following similar actions from Fitch and S&P.

Other bond auctions today include US two-year and five-year notes, and a 15-year German bond sale.

4. Stellantis Names New CEO Amid Profit Pressure

Stellantis (NYSE: STLA) has appointed Antonio Filosa as its new CEO, following the departure of Carlos Tavares amid falling profits and sales.

Filosa, previously COO of the Americas for Stellantis, has over 25 years of experience in the automotive industry and is expected to drive operational improvement. He will be nominated for a permanent board seat at the next Extraordinary Shareholder Meeting.

The move signals a strategic reset as Stellantis navigates a challenging global car market.

5. Oil Prices Edge Higher Ahead of Key OPEC+ Meeting

Crude oil prices ticked up on Wednesday due to mounting supply concerns tied to potential new US sanctions on Russia.

• Brent crude up 0.6% to $63.96 per barrel
• WTI crude up 0.7% to $61.29 per barrel

The market remains cautious ahead of an important OPEC+ meeting this weekend, where further supply increases are on the agenda. The group has been gradually reversing production cuts introduced during the pandemic.

President Trump’s warning that Putin is “playing with fire” has added geopolitical risk to the energy outlook, heightening fears of disruption to Russian exports.

Investors are also awaiting the API’s delayed weekly US inventory report, pushed back due to the Memorial Day holiday.

Sources: (Investing.com, Reuters)