Global Bond Sell-off Pauses, US Stock Futures Rise

The global bond sell-off took a temporary breather on Wednesday, with US stock futures showing a slight warm-up, allowing the market to catch its breath amid the previous sharp swings from the rapid decline in Treasuries and the pressure on stocks. S&P 500 futures rose by 0.15%, Dow futures remained largely flat, and Nasdaq futures rose by 0.4% before the market opened.

Despite a slight decline in US Treasury yields, they remain near multi-year highs, indicating that investors' concerns about inflation and further rate hikes have not been eliminated, just temporarily halted. The yield on the two-year Treasury note dropped by 1 basis point to 4.111%, and the yield on the 10-year Treasury note dropped by 0.6 basis points to 4.662%.

International oil prices fell slightly in the morning session, with Brent crude down 1% to $110.15 per barrel and WTI crude down 1.1% to $103.30 per barrel, but overall still maintaining high levels, with geopolitical risks between the US and Iran not yet dissipating. MUFG analysts pointed out that the decline in US crude oil inventories and geographical uncertainties continue to support oil prices above $100, while the rise in global bond yields and concerns about economic growth limit further upward movement in oil prices.

Interest in the minutes from the Federal Reserve's April meeting is greatly increased tonight. The market is hoping to gain more insights into the future policy path, especially against the backdrop of increasing investor expectations that the Federal Reserve may raise interest rates later this year. Any statements involving balance sheet operations or interest rate prospects could trigger a repricing of bonds and stocks. This meeting is also Jerome Powell's last Federal Reserve meeting as chair.

Asian markets closed mostly lower on Wednesday, with the Nikkei 225 index down 1.2%, the South Korean Kospi index falling for the second consecutive trading day, and the Australian S&P/ASX 200 index down 1.3%. European markets showed mixed performance, with semiconductor hardware stocks rising to support some technology indices, but software and luxury sectors under pressure. Nvidia will release its first-quarter earnings after the US market closes tonight and is currently up 1.3% before the market. As an important barometer of artificial intelligence demand, its performance will significantly affect investors' confidence in the entire technology sector.