Traders work on the floor of the New York Stock Exchange during morning trading on August 23, 2024.
Michael M. Santiago | Getty Images
S&P 500 futures edged lower Tuesday night as investors eagerly awaited chipmaker Nvidia’s quarterly earnings announcement Wednesday after the bell.
Futures linked to the general market index slipped 0.16%, while Nasdaq 100 Futures Contracts fell by 0.31%. Dow Jones Industrial Average Futures contracts lost 18 points, or 0.04%.
In action after working hours, Nordstrom rose 7% after the retailer reported adjusted second-quarter earnings that beat expectations. Semiconductor developer Ambrelle jumped nearly 20% on upbeat third-quarter revenue guidance. PVHCalvin Klein owner, fell more than 7% on a disappointing outlook for the current quarter.
During Tuesday’s trading session, the general stock index and technology stocks Nasdaq Composite Index both added nearly 0.2%. Nvidia posted a gain of about 1.5%, helping to support both indices. The 30-stock fund Dowmeanwhile, added just 0.02% — just enough to post a second consecutive record close.
Wall Street is keeping an eye on Nvidia, the artificial intelligence market leader, to gauge the broader viability of the technology and AI sector. The semiconductor giant has surged 159% in 2024, raising questions about how much room the stock has left to grow.
Key points for investors include the delivery schedule for Nvidia’s Blackwell chips and an update on AI demand.
“It’s hard to say there isn’t a lot of optimism built into the market tomorrow,” Erin Browne, Pimco’s managing director and portfolio manager, said on CNBC’s “Closing Bell” Tuesday.
Browne noted that other AI stocks are trading about 10% below their all-time highs. Nvidia’s current valuation is cheap relative to the five-year average, she added.
“While there is certainly a lot of optimism in the price, I think they can still generate some upside and surprise the market to the upside,” Browne said.
Elsewhere on the earnings front, Bath & Body Works, Foot Locker and Kohl’s are set to report quarterly results Wednesday morning. In addition to Nvidia in the afternoon, investors will also be eyeing results from Salesforce.
