US stock futures were little changed on Wednesday as investors cautiously awaited Nvidia’s crucial second-quarter earnings report. The chipmaker’s results are seen as a key indicator for the broader market, particularly the tech sector.
My favorite chart on #Nvidia day: Nvidia stock could see a $309.7bn swing in market value after its Q2 earnings report as options pricing data suggests a potential 9.8% move in Nvidia's stock in either direction. For once, #Finland's GDP is at stake. The Finnish economy is worth… pic.twitter.com/sy4eTGghL1
— Holger Zschaepitz (@Schuldensuehner) August 28, 2024
Dow Jones Industrial Average futures were flat after the blue-chip benchmark managed a streak of gains, while futures on the S&P 500 and tech-heavy Nasdaq 100 also traded broadly unchanged.
Nvidia’s earnings, expected after the bell on Wednesday, could significantly impact the market as a whole.
#Nvidia's rise has turned the company into the driving influence over the S&P 500, of which it now accounts for >6%. There is no precedent for a company rising to such a weight so quickly. (via BBG) pic.twitter.com/TDxIQ7dGLo
— Holger Zschaepitz (@Schuldensuehner) August 27, 2024
The $3.2 trillion AI giant’s report will be closely watched by traders, who are speculating on the company’s shares depending on whether hopes for another blowout quarter are met. Wall Street forecasts Nvidia’s earnings to have grown by roughly 109% and revenue by 99% year-on-year.
Updates on any potential delays for Nvidia’s new Blackwell chip will be of particular interest to investors.
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— ET NOW (@ETNOWlive) August 28, 2024
Nvidia’s stock has surged about 160% this year so far, and shares were little changed in Wednesday’s premarket after a wobbly start to the week.
Investors await Nvidia’s crucial report
In other tech news, Apple made a rare move within its digital services group, a day after the iPhone maker announced changes to its business strategy. While Nvidia is the star of the earnings docket, investors are also keeping an eye on Salesforce for signs of return on investment in AI from software companies. Additionally, CrowdStrike’s report is expected to provide insights into the repercussions from the global Windows outage in July.
As the market awaits Nvidia’s earnings, cautious optimism prevails. The chipmaker’s performance could set the tone for the broader tech sector and influence overall market sentiment. Investors are closely monitoring key developments, such as the demand for Nvidia’s Blackwell chips and the company’s AI capabilities, as well as the potential impact of any delays or setbacks.
The muted movement in US stock futures reflects the wait-and-see approach adopted by investors ahead of this pivotal earnings report. The outcome of Nvidia’s second-quarter results could either reinforce the market’s confidence in the tech sector’s growth prospects or trigger a reevaluation of the current valuations and expectations.
- TheStreet.”Nvidia’s Jensen Huang and new inflation data may rock the markets”.
- CNBC.”S&P 500 futures rise marginally as Wall Street looks toward Nvidia earnings: Live updates”.
- Yahoo.”Stock market today: US futures stall as investors bide their time ahead of Nvidia earnings”.