Global Market Overview

Fixed Income Market Overview

U.S. Treasury yields rose on Wednesday as investors anticipated the Federal Reserve’s latest policy meeting minutes. The 10-year Treasury yield increased by over 3 basis points to 4.449%, while  the 2-year Treasury yield reached 4.867%, also up by three basis points. Fed officials emphasized patience in cutting rates due to persistent inflation above the 2% target. Meanwhile, higher-than-expected U.K. inflation and a rise in Japan’s 10-year government bond yield to an 11-year high further influenced market dynamics. These developments underscore the ongoing global economic  uncertainty and the cautious stance of central banks in adjusting monetary policies. Investors remain vigilant for any signals that might indicate future rate changes.

Autos giant Peugeot is trialing driverless tech — with a twist — for Amazon-style deliveries.

Dow closes 200 points lower for worst day in May as Fed reignites inflation worries.

Oil prices extend losing streak, on pace for third daily decline.

Citi fined $79 million by British regulators over fat-finger trading and control errors.

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Equity Market Overview

Target Corporation

Target reported a year-over-year sales decline and missed Wall Street’s earnings estimates, attributing the drop to consumers buying fewer discretionary items and groceries due to high prices.  CEO Brian Cornell noted “continued soft trends in discretionary categories” and emphasized the company’s efforts to offer value through price cuts on thousands of everyday items. Target maintained its full-year forecast, expecting comparable sales to range from flat to up 2%. First-quarter earnings per share were $2.03, slightly below the expected $2.06, with revenue at  $24.53 billion. Customer traffic and average spending both fell by 1.9%, while digital sales grew 1.4%. Target faces competition from discounters like Walmart and has seen declines in both  discretionary and essential categories. Despite challenges, there are positive trends, including improved apparel sales and successful partnerships.

Nvidia

Nvidia CEO Jensen Huang emphasized strong demand for AI chips despite supply constraints in an interview following the company’s Q1 earnings report. Huang dismissed concerns about a potential demand lull during the transition from the Hopper AI platform to the advanced Blackwell system, stating that demand remains robust. Nvidia’s Q1 results exceeded expectations, with  adjusted EPS of $6.12 and revenue of $26 billion, up 461% and 262% year-over-year, respectively. Nvidia anticipates Q2 revenue of $28 billion, surpassing analysts’ predictions. The company announced a 10-to-1 stock split and increased its quarterly dividend to $0.10 per share. Nvidia’s stock rose 6% in extended trading. Huang highlighted Nvidia’s strength in both AI training and inferencing, and noted growing sales to diverse industries, particularly automotive.

Snowflakes Inc.

Snowflake Inc. raised its full-year forecast, predicting $3.3 billion in product revenue for fiscal 2025, up from the prior $3.25 billion forecast, signaling 24% growth. The company reported fiscal  Q1 product revenue of $790 million, surpassing analyst expectations. Despite the positive outlook, the forecast indicates potential deceleration later in the fiscal year. Snowflake recorded a net loss  of $317 million for Q1, with adjusted EPS of 14 cents, below analyst estimates. The announcement follows the surprise departure of CEO Frank Slootman. Shares rose 4% in after-hours trading, initially jumping 11% post-report.