S&P 500 futures rise slightly as investors anticipate Nvidia’s earnings report: Live updates

European stock markets faced challenges on Wednesday, with investors focusing on escalating bond yields and disappointing inflation figures from the UK.

By 8:55 a.m. ET, the pan-European Stoxx 600 index was slightly down, revealing a mixed picture across various sectors and local exchanges. Initially starting in the negative, it hovered around a neutral position.

Asian markets declined on Wednesday as investors grappled with higher bond yields and fresh geopolitical tensions.

In Japan, long-term government bond yields dropped slightly, with the 30-year bond yield falling over nine basis points to 4.065%, after peaking at a record high earlier in the week.

However, short-term government bonds saw more pressure, as the five-year bond yield reached a new high of 2.041%.

Masahiko Lu from State Street mentioned that the unprecedented Japanese bond yields are impacting a global “duration reset.” However, he emphasized that this change should tighten financial conditions gradually without causing systemic issues. He pointed out that Japan’s bond market is mainly supported by domestic funding and strong household savings.

The Nikkei Stock Average in Japan dropped by 1.23% to 59,804.41, while the TOPIX index fell by 1.53% to 3,791.65. In South Korea, the Kospi declined by 0.86% to 7,208.95, and the smaller Kosdaq lost 2.61% to 1,056.07. Interestingly, shares of Samsung Electronics increased by 0.18% despite a stalled wage negotiation, as more than 47,000 workers are set to strike on Thursday.

In Australia, the S&P/ASX 200 fell by 1.26% to 8,496.6.

The Hang Seng Index in Hong Kong decreased by 0.57%, while the mainland’s CSI 300 remained steady.

According to HSBC, U.S. Treasuries have entered a precarious phase, as the surge in long-term yields raises concerns about persistent inflation and aggressive interest rate expectations potentially impacting stocks and broader risk assets.

Ian Lingen from BMO Capital Markets warned that any further shifts could affect stock prices.

Last year’s stock market bull run took a downturn in 2026, as traders focused on geopolitical instability and inflation worries.

The bond market, however, presents a different perspective, creating concern among some investors.

Asia-Pacific markets were down on Wednesday as investors considered the implications of rising bond yields and fresh geopolitical tensions, notably regarding the conflict with Iran.

U.S. President Donald Trump stated he was “an hour away” from initiating an attack on Iran but chose to delay it for several days.

Yields on U.S. Treasuries increased as investors sold off bonds due to inflation fears, with the 30-year Treasury yield briefly reaching 5.197%, the highest since July 2007, before settling around 5.174%.

In Japan, super-long-term government bonds saw a slight yield decrease, while the five-year bond yield surged to a record 2.041%.

The Nikkei Stock Average dropped by 1.29%, and the TOPIX fell by 1.45%. South Korea’s Kospi decreased by 0.69%, while the Kosdaq fell by 2.23%. In Australia, the S&P/ASX 200 lost 0.85%. The Hang Seng Index in Hong Kong declined by 0.55%, with the mainland’s CSI 300 down by 0.3%.

On Tuesday, five out of the 11 GICS sectors saw gains.

The healthcare sector led with a rise of 1.09%, followed by the energy and utilities sectors, which increased by 1.03% and 0.99%, respectively.

Meanwhile, the materials sector fell by 2.28%, making it the largest laggard, with telecommunications, consumer goods, financials, and industrials all dropping over 1%.

During after-hours trading, several stocks experienced significant price movements:

• Toll Brothers — The homebuilder’s shares increased by 2% after reporting fiscal second-quarter earnings per share of $2.72, topping expectations of $2.57. Their $2.51 billion sales also outperformed the anticipated $2.42 billion.
• Cava — Shares surged nearly 7% after revising their full-year adjusted EBITDA outlook upward from $181 million to $191 million. Their first-quarter earnings were 20 cents per share on revenue of $438 million, exceeding analysts’ projections of 18 cents and $411 million.
• Red Robin Gourmet Burger — The chain’s shares jumped by 14% after posting a profit of 13 cents per share in the first quarter, despite analysts expecting a break-even outcome. Revenue was $378.3 million, exceeding the $362.1 million forecast.
• Keysight Technologies — The company’s shares rose by 2% following revenue and earnings that surpassed analyst expectations. They also provided an improved outlook for the year.

Stock futures saw little change on Tuesday night.

As of 6 p.m. Eastern time, futures tracking the three major averages were trading close to even.