Hawkish Fed minutes and Walmart's upcoming earnings report are fueling market volatility, with investors weighing potential rate hikes and retail sector health. Analysts noted that several participants in the Fed's January meeting supported a "two-sided description" of future rate decisions, signaling possible hikes if inflation persists above 2%. Meanwhile, Walmart will report results Thursday, offering insights into consumer spending amid inflationary pressures.

The tech sector saw gains, with Nvidia's AI deal with Meta boosting confidence in the AI boom, though concerns about Deere's $1.2 billion tariff-related loss loom. Oil prices surged 1.1% as Middle East tensions and tighter U.S. crude inventories raised supply fears. Deere, a key industrial barometer, faces tariff-driven margin pressures, complicating its earnings outlook.