Wall Street: Falling oil prices and bond yields are easing tensions on US stock markets

Futures are up despite inflation pressure in services climbing to its highest level since 2022. Meanwhile, demand in the AI ​​sector is robust.

Wall Street is off to a friendly start. Two of the biggest drags are easing: oil and bond yields. Futures are trading higher, Brent falls below $99, and the yield on ten-year US Treasury bonds falls from its recent multi-year high to 5.27 percent.

The market expects only a low probability of another interest rate hike in October. Investors don't expect the next step until December. Inflationary pressure remains high: the ISM price index for services rises to 74 points – the highest level since 2022.

In the AI complex, demand remains robust. Advanced Micro Devices expects very high demand for chips for years and wants to significantly expand the range in 2027. Taiwan Semiconductor is trading at record levels following new evidence of involvement in Elon Musk's Terafab project. There is also a possible billion-dollar contract between Alphabet and Constellation Energy for nuclear energy for data centers.