Stock Futures Flat as Investors Await Nvidia Earnings: AI Demand Fuels Market Optimism
Stock futures were little changed on Wednesday as Wall Street awaited Nvidia’s highly anticipated earnings report, a potential turning point for the current bull market. Futures linked to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 hovered near the flat line in early trading, signaling investor caution ahead of the chipmaker’s results.
In after-hours trading, MongoDB surged nearly 30% after beating Wall Street estimates on both earnings and revenue, while Okta climbed about 6% following stronger-than-expected quarterly results and an upbeat full-year outlook. Both companies credited growing demand from businesses building artificial intelligence platforms—a trend that analysts believe could bode well for Nvidia, which will release its earnings after Wednesday’s closing bell.
Nvidia remains a major market driver, holding the largest weight in the S&P 500 and serving as a key barometer for the AI boom. Its performance could either fuel or derail this year’s rally, especially as the “Magnificent Seven” tech giants aim to recover from last week’s sell-off. Analysts expect Nvidia to report results above consensus estimates, continuing its streak of strong financial performance.
The chipmaker has beaten earnings expectations in 11 of its last 12 quarters, according to FactSet. However, history shows mixed stock reactions—shares fell after four of those earnings beats. “Investors are anxious,” said Tom Lee, head of research at Fundstrat Capital. “Even if the stock reacts poorly, the bigger story remains that Nvidia is at the center of the most significant structural shift in the global economy driven by AI.”
Meanwhile, U.S. stocks closed slightly lower on Tuesday as markets largely brushed off President Donald Trump’s unprecedented decision to remove Federal Reserve Governor Lisa Cook. Despite August being historically weak for equities, the major indexes are on track for monthly gains. The S&P 500 is up 2%, the Dow has gained 2.9%, and the Nasdaq has climbed 2%, boosted by expectations of a possible Fed rate cut in the months ahead.
Source: Cnbc