US stock futures hovered near flat on Wednesday as investors braced for Nvidia’s (NVDA) much-anticipated earnings, viewed as a critical test of the tech-fueled summer rally.
Contracts tied to the Dow Jones Industrial Average (YM=F), S&P 500 (ES=F), and Nasdaq 100 (NQ=F) drifted sideways after modest Wall Street gains the previous session.
All eyes are on Nvidia’s results, due after the bell, with expectations of record revenue and adjusted profit. The AI chip leader — now the world’s most valuable company — faces heightened scrutiny, not only on performance but also on the impact of President Trump’s curbs on China chip sales, which Nvidia has warned could trim $8 billion from quarterly earnings.
Options are pricing in a potential 6% swing in the stock — equal to about $260 billion in market value — underscoring its importance to the broader AI trade driving equities higher.
Elsewhere, markets largely shrugged off Trump’s surprise firing of Fed governor Lisa Cook over alleged mortgage fraud, though bond signals showed some strain. Two-year Treasury yields ticked up two basis points to 3.65% after a recent slide, while 30-year yields (^TYX) held above 4.9%.
On the trade front, Bloomberg reported that the European Union is moving to scrap tariffs on all US industrial goods, paving the way for reduced duties on EU auto imports in exchange.
At the same time, Trump’s 50% tariffs on Indian products took effect Wednesday in retaliation for its Russian oil purchases. Crude oil prices (CL=F, BZ=F) steadied after a 2% drop the prior session.
Meanwhile, Cracker Barrel (CBRL) shares kept climbing premarket after the company reinstated its old logo under pressure from Trump and the public.
