Stock Market News: S&P 500 and Nasdaq Futures Edge Lower Ahead of Nvidia’s Big Earnings Reveal

Stock Market News – S&P 500 futures were marginally lower on Tuesday night, as investors braced themselves for Nvidia’s quarterly earnings announcement scheduled for Wednesday after the bell. The anticipation surrounding Nvidia’s results has caused a slight pullback in futures trading, with the broad market index futures dipping by 0.02%, while Nasdaq 100 futures fell by 0.14%. Dow Jones Industrial Average futures remained nearly flat.

After-Hours Market Movements

In after-hours trading, several notable movements were observed. Nordstrom (JWN) saw a 7% increase following a strong second-quarter earnings report that exceeded expectations. Ambarella (AMBA), a semiconductor company, experienced a nearly 20% surge after providing positive revenue guidance for the third quarter. Conversely, PVH Corp (PVH), the parent company of Calvin Klein, saw its shares decline more than 7% due to a disappointing outlook for the current quarter.

Market Performance on Tuesday

During Tuesday’s regular trading session, the broad market index and the tech-heavy Nasdaq Composite both gained approximately 0.2%. Nvidia (NVDA) contributed to this uplift with a 1.5% gain, which helped to support both indices. The Dow Jones Industrial Average, in contrast, saw a modest 0.02% increase, enough to secure a second consecutive record close.

Focus on Nvidia and the AI Sector

Wall Street’s attention is fixated on Nvidia, a leader in the artificial intelligence (AI) sector, as investors seek to assess the broader sustainability of tech and AI investments. Nvidia’s stock has surged by 159% in 2024, raising questions about its potential for further gains. Key areas of focus include Nvidia’s delivery schedule for its Blackwell chips and an update on AI demand.

Erin Browne, Managing Director and Portfolio Manager at Pimco, discussed the market sentiment on CNBC’s “Closing Bell.” Browne acknowledged the high level of optimism currently priced into the market but noted that Nvidia’s valuation remains reasonable relative to its five-year average. “While certainly there’s a lot of optimism priced in, I think that they still can deliver upside and surprise the market to the upside,” Browne stated.

Upcoming Earnings Reports

In addition to Nvidia, which will report in the afternoon, several other companies are scheduled to release their quarterly results on Wednesday morning. Bath & Body Works (BBWI), Foot Locker (FL), and Kohl’s (KSS) are among the companies set to report. Salesforce (CRM) will also be a focal point for investors as it announces its earnings later in the day.

As the market anticipates these earnings reports, particularly Nvidia’s, investors will be closely monitoring the results for indications of future trends in the tech and AI sectors.

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