The Swiss Market Index (SMI) is set to extend Tuesday’s gains as positive overnight cues from U.S. markets and signs of easing tensions with Iran lifted European equities Wednesday morning.
Oil prices extended declines for a third straight session after Iran said it would resume talks with Oman about reopening the Strait of Hormuz, a critical chokepoint for global crude shipments. Brent crude fell 2.5% to $86.35 per barrel, while U.S. WTI dropped 2.4% to $80.39. The price slide followed a muted response from U.S. Treasury Secretary Scott Bessent, whose Monday remarks avoided new sanctions targeting Tehran despite earlier threats of a broader economic confrontation.
Asian equities advanced, with the Nikkei 225 up 0.6% at 66,227.55 and the Shanghai Composite gaining 0.9%. The dollar eased 0.1% against the yen to 158.97 and strengthened slightly versus the yuan to 6.7205, while trading 0.1% higher against the Swiss franc at 0.8024. The euro held near $1.1669 and rose 0.1% to 0.9364 francs.
Gold held near a three-month high at $4,646.08 per troy ounce, while Bitcoin added 0.6% to $78,704. In New York, the Dow Jones Industrial Average closed 0.30% higher at 53,577.40, the S&P 500 rose 0.32% to 7,677.28 and the Nasdaq 100 gained 0.64% to 29,209.23, paring Monday’s losses as chip stocks rebounded.
Nvidia’s shares rose 2.2% in pre-market trade, recovering from a multi-day slump ahead of its after-hours earnings report. The company remains a bellwether for the artificial-intelligence boom, with Mark Malek, portfolio manager at Siebert, noting that Nvidia’s operations are running at peak levels and that the market expects strong results. He cautioned, however, that any disappointment could trigger a sharp pullback.
Other chipmakers outperformed: AMD and Marvell Technology each gained nearly 5%. Moderna surged 14% on volatility, though shares remain below last week’s peak after a melanoma-vaccine study update. Merck & Co. also hit a record, closing 3.8% higher. Conversely, Dick’s Sporting Goods plummeted 31% after cutting guidance tied to weak performance at its Foot Locker acquisition, dragging Nike down 3.1% as the Dow’s laggard.
In Switzerland, earnings updates from Stadler Rail, Gurit and SoftwareOne are in focus, alongside Raiffeisen. The SMI is poised to build on Tuesday’s modest gains, supported by lower oil prices and bond yields, as well as cautious optimism ahead of Nvidia’s report.
