Morning Bid: Shrug for Nvidia but IPOs excite

• Nvidia modestly beat revenue forecasts and lifted its dividend, but shares dropped 2%, though global chipmakers rallied with Samsung surging 7%
• Oil prices retreated to around $105/barrel on reports of supertankers clearing the Hormuz strait and hopes for an Iran war deal, helping lift the S&P 500
• OpenAI plans to go public and SpaceX filed for IPO on Wednesday, exciting investors about new opportunities in the AI sector

Market Summary: Nvidia Results, IPO Activity, and Geopolitical Developments

Nvidia Performance

Nvidia, the world's most valuable company, delivered solid earnings with sales nearly doubling year-over-year and modestly beating revenue forecasts. The company announced an $80 billion stock buyback and increased its dividend. However, markets reacted with relative indifference, causing a 2% decline in shares. Global chipmakers gained overall, with Samsung surging 7% after reaching a labor deal.

IPO Developments

Market sentiment improved significantly on IPO news. OpenAI reportedly plans to file for an IPO, boosting SoftBank shares by 4%. SpaceX also filed for its long-awaited IPO on Wednesday, creating additional excitement in the AI sector.

Geopolitical and Commodity Markets

Oil prices stabilized around $105 per barrel for Brent crude following reports of supertankers navigating the Hormuz strait safely and potential progress toward ending the Iran war. This eased geopolitical tensions that had elevated borrowing costs.

Broader Market Action

The S&P 500 rose 0.8% on Wednesday, while Treasury yields and the dollar retreated. Wall Street futures showed modest gains Thursday morning, with Brent crude edging higher.

Federal Reserve Outlook

Fed minutes revealed an increasingly hawkish committee at its April meeting, concerned about missing inflation targets for five consecutive years.

Economic Data

Flash PMI data showed eurozone economic activity contracted at its fastest pace since October 2023 in May. Thursday's economic calendar includes U.S. flash PMIs, jobless claims, housing starts, and Walmart earnings.

AI Investment Trend

The "Magnificent 7" tech companies have significantly ramped up bond issuance to fund massive AI infrastructure investments.