Nasdaq futures indicated an upward trajectory on Wednesday, as market participants concentrated on the eagerly awaited quarterly results of AI frontrunner Nvidia, scheduled to be released after the market close. Futures linked to the tech-heavy Nasdaq, the benchmark S&P 500, and the blue-chip Dow Jones Industrial Average experienced increases of 0.4%, 0.3%, and 0.1%, respectively. Yesterday, the S&P 500 and Dow experienced declines for the fourth consecutive session, while the Nasdaq also closed lower for the second day in a row, amid ongoing concerns regarding valuations associated with AI. Market participants are also anticipating the release of tomorrow’s September jobs report, which experienced a delay due to the 43-day U.S. government shutdown. The report was initially set for publication on Oct. 3, just two days following the commencement of the shutdown.
Today, investors are focusing on Nvidia, the world’s most valuable company, as its quarterly earnings report after the bell could have significant implications for the AI trade and the broader stock market. Equities have declined by almost 5% this week and are down over 12% from their closing peak on October 29; however, they experienced a 0.7% increase in premarket trading. Microsoft, whose shares fell 2.7% yesterday after announcing strategic partnerships with Nvidia and Claude AI developer Anthropic, and also faced pressure from a ratings cut by Rothschild, ticked higher before the bell. Amazon stock pointed 0.7% higher after dropping 4.4% Tuesday on its own rating cut by Rothschild.
Lowe’s shares surged 5% following the announcement of a third-quarter profit that exceeded expectations and an upward revision of its full-year sales forecast. This came just a day after rival Home Depot experienced a 6% decline in its stock price, attributed to disappointing profit results and a reduction in its full-year outlook. Target stock slipped less than 1% after its total sales and comparable store sales fell short of analysts’ estimates, and it revised its full-year profit estimate downward. T.J. Maxx parent TJX was also slated to report earnings before the bell. Walmart, the world’s largest retailer, is set to report its results early Thursday.
Bitcoin was trading around 91,400, down from the day’s high of about 93,400. The largest cryptocurrency fell below $90,000 earlier Wednesday for the second consecutive day. The yield on the 10-year Treasury note remained relatively stable from Tuesday’s closing value, hovering around 4.12%. The U.S. dollar index, which monitors the dollar’s performance relative to a selection of foreign currencies, registered a modest increase at 99.68. WTI crude futures, the U.S. oil benchmark, experienced a decline of 2%, settling at $59.55 per barrel. Gold futures increased by over 1%, reaching a price of $4,115 per ounce.