1 week ago
US Futures Edge Lower Before Nvidia Earnings, Inflation Data
US stock-market futures were slightly lower on Wednesday, meaning investors expected a quiet or weaker opening.
They were waiting for Nvidia to report how much money it made.
They were also waiting for an inflation report called the Personal Consumption Expenditures price index.
The report is important because the Federal Reserve uses it to help decide interest-rate policy.
Investors will also watch Federal Reserve Chair Kevin Warsh speak on Friday.
Nvidia’s results could help lift other chip companies if they are better than expected.
However, some investors worry that technology and artificial-intelligence stocks may be priced too highly.
Oil prices fell as markets reacted to Iran-related sanctions and talks involving Oman about the Strait of Hormuz.
Bonds gained, but the US dollar stayed close to a three-month low.
S&P 500 and Nasdaq-100 futures fell 0.1% and 0.2%, while Dow futures gained 6 points.
Investors awaited Nvidia’s fiscal second-quarter results and July’s Personal Consumption Expenditures price data.
Analysts expected Nvidia’s revenue and net income to nearly double from a year earlier.
Lower crude prices supported Treasury bonds, while the US dollar remained near a three-month low.
Oil prices fell after less-severe-than-expected Iran sanctions and renewed talks on navigation through the Strait of Hormuz.
- Who
- US investors, Nvidia, the Federal Reserve and officials involved in Iran-related oil and shipping issues.
- What
- US stock futures edged lower as markets awaited Nvidia’s earnings and July inflation data.
- Where
- US financial markets, with additional developments involving the Strait of Hormuz and talks between Iran and Oman.
- When
- Wednesday, 26 August; the PCE report was scheduled for 8:30 a.m. ET, and Kevin Warsh was due to speak Friday.
- Why
- Investors were assessing Nvidia’s growth prospects, inflation, possible Federal Reserve policy, oil-market developments and geopolitical risks.
Optimistic market case
Cautious market case
Nvidia’s earnings outlook
Optimistic market case
Better-than-expected results could trigger a broader rally in chip stocks, with analysts projecting nearly doubled revenue and net income.
Cautious market case
Investors have become more cautious about the durability of the artificial-intelligence trade and remain concerned about elevated valuations.
Federal Reserve outlook
Optimistic market case
Cooling oil prices and gains in bonds could support hopes for less pressure on markets from inflation and interest rates.
Cautious market case
Persistent inflation and elevated interest rates continue to weigh on sentiment, while Kevin Warsh is not expected to give clear guidance on the September decision.
Oil and geopolitical risks
Optimistic market case
Renewed Iran-Oman talks raised hopes of reopening or improving navigation through the Strait of Hormuz, putting downward pressure on oil prices.
Cautious market case
The situation remains exposed to sanctions, threats and possible disruption around Iranian shipping and the strategic waterway.
Key facts
- S&P 500 futures
- Down 0.1% on Wednesday.
- Nasdaq-100 futures
- Down 0.2%.
- Dow futures
- Up 6 points, or 0.01%.
- PCE inflation report
- July data was scheduled for release at 8:30 a.m. ET on Wednesday.
- Nvidia earnings
- Analysts projected that fiscal-second-quarter revenue and net income would nearly double from a year earlier.
- US crude oil
- Fell $2 to $79.73 a barrel, extending a three-day decline.
- Brent crude
- Fell $3 to $84.56 a barrel, also extending a three-day decline.
Sources
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