U.S. Markets Mixed as AI Weakness, Oil Surge, and Fed Caution Shape Sentiment

index/">index/">index Update
U.S. equities closed on a mixed note on Tuesday, with the S&P 500 declining 0.4% and the Nasdaq/">Nasdaq/">Nasdaq falling 1%, weighed down by weakness in AI-linked stocks and rising oil prices. Investor sentiment was impacted by reports indicating slower-than-expected growth at OpenAI, which pressured semiconductor stocks including Nvidia, Broadcom, AMD, Intel, and Oracle. Major technology companies also traded lower ahead of their Earnings/">Earnings/">Earnings releases. Meanwhile, the Dow Jones Industrial Average remained largely unchanged, supported by a 3.5% gain in Coca-Cola following strong Earnings/">Earnings/">Earnings. In after-hours trading, Starbucks reported improved traffic trends and raised its full-year outlook after exceeding Revenue/">Revenue/">Revenue expectations.

Market Movers
Among individual stocks, Sleep Number Corporation emerged as the top gainer, surging 47.06%, followed by Akanda Corp., which rose 44.55%. On the downside, High-Trend International Group declined sharply by 78.83%, while Vistance Networks, Inc. fell 49.31%, making them the session’s biggest laggards.

Commodities Update
Oil prices continued to rally on Wednesday, with WTI crude rising above USD 102 per barrel and Brent Crude exceeding USD 115, marking its highest level since June 2022. The surge was driven by escalating global Supply/">Supply/">Supply concerns, primarily due to stalled U.S.–Iran negotiations and the effective closure of the Strait of Hormuz, a key route for approximately 20% of global oil shipments. The situation has been described by the IEA as the largest Supply/">Supply/">Supply shock on record. Additional pressure stemmed from potential U.S. sanctions targeting Iranian-linked Chinese refiners and countries paying transit fees, while the UAE’s decision to exit OPEC/">OPEC/">OPEC next month added further uncertainty to Supply/">Supply/">Supply dynamics.
Precious metals remained under pressure, with gold trading below USD 4,600 per ounce after a nearly 2% decline and silver hovering near USD 73 following a drop of over 3%. Despite geopolitical tensions, rising Inflation/">Inflation/">Inflation expectations and the likelihood of prolonged higher interest rates have reduced the appeal of non-yielding Assets/">Assets/">Assets such as gold and silver.

Macro Updates
Fed Likely to Hold Rates Steady Amid Inflation/">Inflation/">Inflation and Leadership/">Leadership/">Leadership Transition
The Federal Reserve is widely expected to keep the federal funds rate unchanged at 3.5%–3.75% for a third consecutive meeting in April 2026. Policymakers are balancing rising Inflation/">Inflation/">Inflation, driven by higher energy prices, against a resilient labor market and economic environment. While markets currently anticipate no rate changes this year, attention remains on the Fed’s forward guidance and any indication of potential policy adjustments. This meeting may also be the final one led by Chair Jerome Powell, as developments have cleared the way for Kevin Warsh’s expected confirmation as the next Fed Chair in mid-May.

U.S. Crude and Fuel Inventories Continue to Decline
U.S. Crude Oil inventories fell by 1.79 million barrels in the week ended April 24, 2026, contrary to expectations of an increase, and extending the previous week’s 4.4 million barrel decline. Gasoline inventories dropped significantly by 8.47 million barrels, while distillate stocks decreased by 2.60 million barrels. Cushing inventories also declined by 0.82 million barrels, reflecting tightening Supply/">Supply/">Supply conditions across key petroleum categories.

Bonds Commentary
The Yield/">Yield/">Yield on the U.S. 10-year Treasury note remained near 4.35% as investors stayed cautious ahead of the Federal Reserve’s policy decision. The outlook is influenced by rising geopolitical tensions in the Middle East, particularly the ongoing U.S.–Iran conflict and disruptions in the Strait of Hormuz, which have elevated Inflation/">Inflation/">Inflation concerns and supported higher yields. Global Central Bank decisions are also in focus, with upcoming policy announcements from the EU, UK, and Canada, while the Bank of Japan recently maintained a relatively hawkish stance.

Futures Update
U.S. stock futures moved higher on Wednesday, indicating a positive start to what is expected to be a highly active Trading session. Dow futures rose by 47 points (0.1%), S&P 500 futures gained 5 points (0.1%), and Nasdaq/">Nasdaq/">Nasdaq 100 futures advanced 85 points (0.3%).

After a muted performance in the previous session, stocks trended mostly lower on Tuesday, with the tech-heavy Nasdaq/">Nasdaq/">Nasdaq retreating from its recent record closing high. The S&P 500 slipped 35.11 points, or 0.49%, to close at 7,138.81. From a technical standpoint, the index/">index/">index has broken above a key resistance level, signaling the possibility of continued upside. However, the 14-day RSI remains in overbought territory, suggesting caution as momentum may begin to fade or transition into a consolidation phase. In the near term, resistance is expected around 7,250, while support is positioned near 6,980.