U.S. stock futures are showing modest gains as investors anticipate Nvidia’s upcoming quarterly earnings, which are expected to be a critical moment for the ongoing artificial intelligence (AI) trading surge.
Dow Jones Industrial Average futures rose 24 points, or 0.1%, building on the index’s record-high close on Monday.
S&P 500 futures increased by 0.1%.
Nasdaq 100 futures saw a 0.2% gain, reflecting the tech sector’s optimism ahead of Nvidia’s earnings report.
Nvidia, a key player in the AI revolution, is set to release its earnings after the market closes on Wednesday. This report is highly anticipated as it will provide insights into the sustainability of AI demand nearly two years after the launch of OpenAI’s ChatGPT. The results could significantly impact market sentiment, particularly in the tech sector.
Investors are also keeping a close watch on geopolitical developments, particularly in the Middle East, and are awaiting further signals from the Federal Reserve. Following Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, expectations have grown that the central bank may begin cutting interest rates in September.
Deutsche Bank’s macro strategist Henry Allen highlighted the importance of Nvidia’s earnings, noting that a strong report from the semiconductor giant in February had previously driven a 2.1% surge in the S&P 500 during a single trading session.
In other markets, oil prices slightly retreated after significant gains on Monday:
Brent crude fell by 0.1% to just over $80 a barrel.
West Texas Intermediate crude slipped 0.2% to about $77 a barrel.
Bond yields edged up slightly, with the 10-year U.S. Treasury yield at 3.828% and the 2-year note yield at 3.950%.
This combination of factors—AI developments, geopolitical risks, and Federal Reserve policy—continues to dominate investor focus as markets head towards Nvidia’s earnings release.
