Nvidia earnings keep Wall Street futures subdued ahead of key results: Dow Jones, S&P, Nasdaq

U.S. stock futures pointed to a broadly flat opening on Wednesday as investors held back from making significant moves ahead of second-quarter results from Nvidia (NASDAQ:NVDA), due after the closing bell.

The cautious tone followed modest gains in the previous session, with Nvidia’s earnings expected to provide an important test of investor confidence in artificial intelligence spending and the broader technology sector.

“Assuming there is no major movement in either a positive or negative direction in geopolitical terms, tonight’s second quarter results from Nvidia are likely to set the tone for markets through the remainder of the week,” said AJ Bell investment director Russ Mould.

He added, “Investors typically assume Nvidia will always beat expectations, so the AI chip giant will have to produce or say something very special to truly impress the market.”

PCE inflation comes in slightly above expectations

Futures remained relatively steady after the Commerce Department released its latest personal consumption expenditures data, one of the Federal Reserve’s preferred measures of inflation.

The headline PCE price index increased 0.2% in July after declining 0.1% in June. Economists had forecast a smaller increase of 0.1%.

On an annual basis, headline PCE inflation remained at 3.7%, compared with expectations for a slight decline to 3.6%.

Core PCE, which excludes food and energy prices, increased 0.2% month-on-month following a 0.1% rise in June, matching forecasts. Annual core inflation remained unchanged at 3.3%, also in line with expectations.

The figures were included in the Commerce Department’s broader report on personal income and spending.

Wall Street advances as oil prices and Treasury yields fall

U.S. equities finished higher on Tuesday despite giving back some of their early gains during the session.

The Nasdaq advanced 171.11 points, or 0.7%, to 26,151.80. The S&P 500 gained 24.42 points, or 0.3%, to 7,677.28, while the Dow Jones Industrial Average added 160.24 points, or 0.3%, to 53,577.40.

Part of the positive sentiment came from another sharp decline in crude oil prices. After falling more than 2% on Monday, U.S. crude futures dropped by more than 3% on Tuesday.

The retreat followed the Treasury Department’s announcement of “Operation Economic Outcast,” described as an unprecedented whole-of-government economic campaign targeting Iran and its “enablers.”

The U.S. sanctioned nearly 60 entities, individuals and vessels that it said “enable the Iranian regime’s recklessness.” However, markets appeared relieved that Washington stopped short of immediately imposing secondary sanctions on other countries involved in sustaining Iranian trade.

Investors also appeared to interpret the Trump administration’s increased emphasis on economic pressure as reducing the immediate risk of a renewed full-scale military offensive.

Falling crude prices contributed to another decline in Treasury yields, providing additional support for equities.

Consumer confidence weakens in August

Investors also assessed fresh data showing a deterioration in U.S. consumer sentiment.

The Conference Board’s consumer confidence index declined to 89.4 in August from a downwardly revised 90.2 in July.

Economists had expected a reading of 90.1, compared with the initially reported July figure of 90.8.

The decline reflected weaker consumer expectations and added to evidence that households remain cautious about the economic outlook.

Technology and gold stocks lead Tuesday’s gains

Computer hardware shares were among Tuesday’s strongest performers, with the NYSE Arca Computer Hardware Index jumping 3% after suffering sizeable losses over the preceding sessions.

Gold stocks also advanced strongly, pushing the NYSE Arca Gold Bugs Index up 2.3%.

Airlines, brokerages and semiconductor companies recorded notable gains as well, while oil producers came under pressure alongside the decline in crude prices.

Despite Tuesday’s advance, investors remained cautious ahead of several potentially significant market catalysts. Nvidia’s (NASDAQ:NVDA) results are at the centre of attention, while traders are also monitoring inflation developments and the Jackson Hole Economic Policy Symposium for further signals on the direction of U.S. monetary policy.

Nvidia stock price