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U.S. Stock Futures Rise as Bond Yields Fall, Eyes on Nvidia Results


Stock-Index Futures Trading

  • S&P 500 futures (ES00) rose 24 points or 0.5% to 4423.
  • Dow Jones Industrial Average futures (YM00) gained 135 points or 0.4% to 34479.
  • Nasdaq 100 futures (NQ00) advanced 116 points or 0.8% to 15075.

Previous Market Performance

On Tuesday, the Dow Jones Industrial Average (DJIA) fell 175 points or 0.51% to 34289, the S&P 500 (SPX) declined 12 points or 0.28% to 4388, and the Nasdaq Composite (COMP) gained 8 points or 0.06% to 13506.

Positive Market Outlook

Stock futures firmed early Wednesday following news of eurozone economic activity contracting more than expected, leading to a sharp decline in government bond yields.

However, the focus of the market today revolves around Nvidia (NVDA), with the results scheduled to be released after the closing bell.

Nvidia’s shares have surged by 212% this year, showcasing the market’s enthusiasm for big technology stocks and AI advancements, which have contributed significantly to the rise of equity indices throughout 2023.

Given Nvidia’s performance and forecasts, the market sentiment in the short term is expected to be determined.

Nvidia’s Q2 Sales in Focus

Investors will be closely watching Nvidia’s Q2 sales performance to see if it meets the estimated $11 billion mark. Any result less than exceptional could potentially lead to a significant drop in Nvidia’s stock price, which has experienced a remarkable 345% rally since the dip in October. The pricing of Nvidia’s stock options indicates that traders are anticipating a possible 10% movement in the shares throughout the rest of the week.

A Potential Volatility Surge

Industry experts predict that Nvidia’s upcoming financial report and outlook will likely trigger a surge in volatility. Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, highlights the chip giant’s numbers and outlook as catalysts for this jolt in volatility.

Other Companies Reporting Results

Aside from Nvidia, several other companies are scheduled to report their results on Wednesday. Before the opening bell, Analog Devices (ADI), Kohl’s (KSS), and Williams-Sonoma (WSM) will share their financial updates. After the closing bell, Snowflake (SNOW), Splunk (SPLK), and Autodesk (ADSK) will release their reports.

Peloton’s Performance Revealed

Peloton, the former lockdown darling, will also unveil its latest numbers before the market opens. Traders are speculating that there could be an 18% potential movement in the company’s share price by the end of the week.

Economic Updates on the Horizon

Additionally, several U.S. economic updates are expected to be released on Wednesday. The S&P services and manufacturing Purchasing Managers’ Index (PMIs) for August will be available at 9:45 a.m. Eastern Time. Following that, the July new home sales report will be published at 10 a.m.

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