U.S. stock futures edged higher Wednesday, stabilizing after recent losses with investors remaining cautious ahead of key earnings from bellwether Nvidia and the minutes of the Federal Reserve’s October meeting.
At 05:15 ET (10:15 GMT), Dow Jones Futures gained 85 points, or 0.2%, S&P 500 Futures climbed 22 points, or 0.3%, and Nasdaq 100 Futures rose 95 points, or 0.4%.
The main averages on Wall Street sank in the prior session, extending what has become a multi-day rout in stocks stirred by concerns over often debt-fueled spending on AI and lofty tech sector valuations.
The S&P 500 fell 0.8% and the Dow Jones Industrial Average slid 1.1%, both recording their fourth consecutive losing days, and the NASDAQ Composite dropped 1.2%, its fifth negative day in six sessions.
Nvidia’s earnings loom large All eyes are now on upcoming results from Nvidia (NASDAQ:NVDA), the company whose place at the center of the AI spending bonanza has made it one of the most influential players in the U.S. stock market.
With a market capitalization that stands at $4.41 trillion, Nvidia currently makes up more than 7% of the weighting of the benchmark S&P 500.
While the AI bellwether is widely expected to log a strong quarter after the close, the focus will be chiefly on whether it can justify its massive valuation, as well as provide positive signals on artificial intelligence (AI) spending.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Doubts over AI were a key weight on tech stocks in recent weeks, as investors questioned whether hype over the technology had formed a bubble in tech valuations. Nvidia has been at the heart of the massive AI-fueled valuation spike over the past three years.
Beyond the tech sector, retail chains Lowe’s (NYSE:LOW) and Target (NYSE:TGT) are also scheduled to report their own earnings prior to the start of U.S. trading.
Off-price brand TJX Companies (NYSE:TJX) will unveil earnings before the opening bell today too, while Walmart (NYSE:WMT) will report on Thursday.
Home Depot (NYSE:HD) offered a decidedly gloomy view of the retail sector on Tuesday. Executives at the firm had been hoping that a combination of lower interest and mortgage rates would underpin a spike in demand, but the uptick failed to materialize.
Fed minutes to be studied Away from the corporate sector, Wednesday’s focus will be squarely on the minutes of the Fed’s late-October meeting for more insight into the central bank’s plans. While officials had almost unanimously backed a rate cut during the meeting, recent comments from policymakers indicated some disagreements among the Fed’s ranks about future decisions.
Any discord in the Fed is likely to further the case for a hold, with the central bank having flagged persistent caution over the U.S. economy.
Nonfarm payrolls data for September are due on Thursday and will offer some cues on the labor market, which, with inflation, is a key consideration for the Fed in adjusting rates. Traders have been steadily pricing out expectations for a December rate cut, with CME Fedwatch showing markets pricing in a 43.4% chance for a 25 basis point cut during the Fed’s December 10-11 meeting, down from last week’s probability of 61.9%.
Crude hit by inventories build Oil prices slipped lower as higher crude inventories in the U.S., the world’s biggest crude consumer, reinforced concerns of oversupply.
Brent futures dropped 0.6% to $64.48 a barrel, and U.S. West Texas Intermediate crude futures fell 0.6% to $60.30 a barrel.
Data released Tuesday by the industry body American Petroleum Institute showed that crude stocks rose by 4.45 million barrels in the week ended November 14, while gasoline inventories climbed by 1.55 million barrels and distillate inventories increased by 577,000 barrels.
