U.S. stock index futures slipped and Treasury yields surged on Wednesday amid growing fiscal anxiety as investors focused on discussions around U.S. President Donald Trump's tax-cut bill that has been plagued by Republican infighting.

Market Snapshot

At 7:40 a.m. ET, Dow E-minis were down 326 points, or 0.76%, S&P 500 E-minis were down 31.5 points, or 0.53%, and Nasdaq 100 E-minis were down 113.25 points, or 0.53%.

Pre-Market Movers

D-Wave Quantum - D-Wave Quantum shares jumped another 11% in premarket trading on Wednesday. The shares surged 25.9% on Tuesday after the company unveiled its newest quantum computer, which it claims is capable of solving problems beyond the capabilities of a classical GPU-based supercomputer.

UnitedHealth - UnitedHealth shares sank 6.2% in premarket trading. HSBC analysts made a significant adjustment to their outlook on UnitedHealth, downgrading the stock from Hold to Reduce and slashing the price target to $270 from the previous $490.

Wolfspeed - Wolfspeed sank 62.7% to $1.17 after The Wall Street Journal reported the chip-component makerwas getting ready to file for bankruptcyin the next few weeks amid struggles with its debt levels. The Journal, citing sources familiar with the matter, said Wolfspeed was aiming to work out a Chapter 11 plan that has support of a majority of its creditors.

Tesla - Tesla was up 0.6% after gaining 0.5% on Tuesday after CEO Elon Musk indicated he was committed to the electric-vehicle company. The chief executive told a conference in Qatar that he expects to be CEO in five years, and also said he would step back from political spending. Musk also told CNBC in an interview that Tesla was on track for a June launch of robotaxi service in Austin, Texas, adding though that the rollout would be slow.

Nvidia - Nvidia declined 0.8%. CEO Jensen Huang again slammed U.S. curbs on the chip maker’s exports to China. Huang said Wednesday at a news conference in Taiwan that U.S. measures designed to stop China from getting its hands on Nvidia’s artificial-intelligence chips had been “a failure,” according to reports.

XPeng - XPeng jumped 5.2% in U.S. trading after its first-quarter loss narrowed and revenue in the period more than doubled to 15.81 billion yuan. The company said it expects to deliver 102,000 to 108,000 vehicles in the second quarter.

Baidu - U.S.-listed shares of Baidu rose 2.2% after the Chinese tech company’s growing artificial-intelligence business helped it top analysts’ first-quarter earnings estimates.

Take-Two - Take-Two Interactive Software fell 4.2% after the videogame maker proposed an offering for $1 billion common shares.

Target - Target fell 4.2% as the retailer’s first-quarter adjusted earnings missed analysts’ estimates and revenue fell 2.8% year over year to $23.8 billion for the quarter ended May 3. For the fiscal year ending in January, the company expects a low-single digit decline in sales. Past guidance called for sales to grow around 1% for the year.

Alphabet - Alphabet was up 0.5% in premarket trading. The company’s Google unit, at its developers conference Tuesday, issued updates around artificial intelligence andhow it plans to solidify its place in search. But many of the AI products announced by Alphabet won’t come for a few months. Google’s headline announcement was the implementation of artificial intelligence into search in what it is calling “AI Mode.” Alphabet CEO Sundar Pichai said it was a “total reimagining of search.”

Lowe's - Lowe’s jumped 2.1% after posting first-quarter earnings that topped analysts’ estimates. The company maintained its fiscal-year outlook.

Palo Alto Networks - Palo Alto Networks reported fiscal third-quarter adjusted earnings and revenue that topped analysts’ estimates and raised fiscal 2025 profit expectations. Shares of the cybersecurity company were down 3.7% in premarket trading, however, after Palo Alto Network’s revenue outlook for the fourth quarter missed estimates.

Canada Goose - Canada Goose on Wednesday withheld from providing its fiscal 2026 forecast due to uncertainty stemming from the implementation of U.S. President Donald Trump's tariffs. However, Canada Goose beat fourth-quarter revenue estimates as its marketing and store expansion efforts helped aid demand for its luxury products including knitwear and fleece jackets, sending its U.S.-listed shares up 8% in premarket trading.

Keysight - Fiscal second-quarter earnings at Keysight Technologies beat Wall Street forecasts. The test-equipment maker also said it anticipates third-quarter profit of $1.63 to $1.69 a share versus consensus of $1.69. Shares rose 5%.

Toll Brothers - Toll Brothers jumped 4.1% after the home builder reported second-quarter adjusted earnings of $3.50 a share, topping analysts’ estimates of $2.86. Revenue was a better-than-expected $2.74 billion. “Despite a softer demand environment, we generated record second-quarter home sales revenues of $2.71 billion, well above our guidance of $2.47 billion,” said Chairman and CEO Douglas C. Yearley Jr. The company said it continues to expect to deliver 11,200 to 11,600 units this year.

Viasat - ViaSat declined 1.4% as the satellite services company posted a fiscal fourth-quarter loss of 2 cents a share, below analysts’ expectations that called for a profit of 4 cents. Revenue of $1.15 billion topped consensus of $1.13 billion.

Market News

New Intelligence Suggests Israel Is Preparing Possible Strike on Iranian Nuclear Facilities, US Officials Say

The US has obtained new intelligence suggesting that Israel is making preparations to strike Iranian nuclear facilities, even as the Trump administration has been pursuing a diplomatic deal with Tehran, multiple US officials familiar with the latest intelligence told CNN.

Such a strike would be a brazen break with President Donald Trump, US officials said. It could also risk tipping off a broader regional conflict in the Middle East — something the US has sought to avoid since the war in Gaza inflamed tensions beginning in 2023.

Officials caution it’s not clear that Israeli leaders have made a final decision, and that in fact, there is deep disagreement within the US government about the likelihood that Israel will ultimately act. Whether and how Israel strikes will likely depend on what it thinks of the US negotiations with Tehran over its nuclear program.

Google I/O Conference: AI Upgrades, Subscriptions and Smart Glasses

Alphabet's Google said on Tuesday it would put artificial intelligence into the hands of more Web surfers while teasing a $249.99-a-month subscription for its AI power users, its latest effort to fend off growing competition from startups like OpenAI.

Google unveiled the plans amid a flurry of demos that included new smart glasses during its annual I/O conference in Mountain View, California, which has adopted a tone of increased urgency since the rise of generative AI challenged the tech company's longtime stronghold of organizing and retrieving information on the internet.

In recent months, Google has become more aggressive in asserting it has caught up to competitors after appearing flat-footed upon the release of Microsoft-backed OpenAI's ChatGPT in 2022.

Nvidia Says U.S. Export Controls on AI Chips to China Were "a Failure"

U.S. export controls on artificial intelligence chips to China were “a failure”, Nvidia

Chief Executive Jensen Huang said on Wednesday.

“All in all, the export control was a failure,” Huang said adding, “The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, has been proven to be fundamentally flawed.”

Huang, speaking at the annual Computex event in Taipei, said Nvidia’s market share in China dropped to 50% from 95% at the start of former U.S. President Joe Biden’s administration.