Tonight’s Highlights | Nvidia Earnings May Determine AI’s Rise or Fall, Wall Street Holds Its Breath
On Wednesday, U.S. stock futures for the three major indices showed narrow fluctuations in pre-market trading.
As of press time, Dow Jones futures down 0.04%, S&P 500 futures down 0.05%, and Nasdaq 100 futures fell 0.07%.
In individual stocks, database software provider MongoDB surged nearly 30% in pre-market, and cybersecurity firm Okta rose about 5%. Both companies attributed their strong performance to demand from firms developing AI platforms.
This could be a positive omen for Nvidia, which is set to release its quarterly earnings after Wednesday’s close, a stock Wall Street has high hopes for as the “global stock king.”
With the largest weighting in the S&P 500, Nvidia is seen as a bellwether for the broader market and a key indicator of AI development. Its earnings could either dampen a market rebound or propel stocks higher.
According to FactSet, Nvidia has beaten earnings expectations in 11 of its past 12 quarterly reports, though the stock reacted poorly on four of those days.
Tom Lee, research head and chief investment officer at Fundstrat Capital, said, “I know investors are anxious, but the main narrative remains: amid the biggest structural change in the global economy, it’s still one of the most important companies.”
Guy Miller, chief strategist at Zurich Insurance Group, noted, “Nvidia is the focus this week. We’ve seen the AI premium decline somewhat, so this is critical data to gauge whether the AI outlook can continue to evolve.”
However, Miller also cautioned, “This could either sustain the tech cycle and AI dream or deal it a severe blow.”
Beyond Nvidia’s earnings, traders are watching U.S. tariff policies and the latest Fed developments. According to CCTV News, the U.S. 50% tariff on India took effect. Some Indian exporters reported that U.S. clients canceled orders due to the tariff measures.
Overnight, a Fed spokesperson commented on Trump’s firing of Governor Lisa Cook, stating that the president can only remove Fed governors “for cause.” Trump responded that he would abide by court rulings.
Shortly before press time, U.S. Treasury Secretary Besant remarked that Fed governors should be independent but that the bank has deviated from its core monetary policy mission since 2008, needing to return to it.
European stock markets trading currently showed mixed results, with the German DAX down 0.32%, the UK FTSE 100 down 0.1%, and the French CAC 40 up 0.57%.
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