U.S. stock futures were relatively stable on Wednesday as investors awaited two major events: Nvidia’s quarterly earnings report and the release of Federal Reserve policy meeting minutes.
Nvidia, a leading company in the AI chip sector, will release its first quarter earnings after the market closes. The company’s performance is under close scrutiny as its shares have risen more than 92% this year, following a substantial rise last year.
“Investors are eager to see if Nvidia’s success from 2023 continues into the new year,” said Sam North, analyst at investment platform eToro. “Expectations are very high and it will be interesting to see if the company can exceed them again.”
Ahead of the earnings report, Nvidia shares fell 0.5% in premarket trading, despite gaining more than 3% over the past two days.
Additionally, investors are looking forward to the minutes of the Federal Reserve’s latest monetary policy meeting, which are expected to be released at 2 p.m. ET. These minutes could provide more clarity on the timing of a possible interest rate cut. Several Federal Reserve officials have emphasized the need for more signs of slowing inflation before cutting rates.
Traders currently estimate a 69% chance that the Federal Reserve will lower rates by at least 25 basis points in September, according to CME’s FedWatch tool.
As of 5:25 a.m. ET, Dow futures were down 45 points (0.11%), S&P 500 futures were down 7 points (0.13%), and Nasdaq 100 futures were down 15 points (0.08%).
This slight drop in futures follows two days of gains that took the tech-heavy Nasdaq and S&P 500 to all-time closing highs on Tuesday.
Other earnings reports expected today include those from retailers Target and TJX, and chipmaker Analog Devices, all set to report before the market opens.
In premarket moves, Urban Outfitters shares rose 6.7% after the company reported better-than-expected first-quarter results, driven by strong demand. On the other hand, shares of Lululemon Athletica fell 4.2% following the announcement that product director Sun Choe will leave the company.
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