US stock futures inched higher on Wednesday ahead of Nvidia’s (NVDA) earnings, seen as a crucial litmus test for the AI trade that could set the direction of markets for days to come.
Dow Jones Industrial Average futures (YM=F) rose about 0.2%, while S&P 500 futures (ES=F) put on 0.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) were up 0.2%, after a mixed day on Wall Street.
Investors are counting down to Nvidia’s results after the bell, hoping the last of the “Magnificent Seven” tech megacaps to report can provide some fresh momentum for stocks. It’s seen as a reality check on just how important the AI poster child (and its cousins) are to the two-year bull market.
The $3.61 trillion chipmaker, now the world’s most valuable company, has seen its stock surge 200% this year so far, hitting record highs after the presidential election. The European Central Bank has warned of a bubble in AI stocks amid high concentration and the risk that lofty earnings hopes won’t be met.
Nvidia’s share price was slightly higher in premarket, after surging on Tuesday to buoy the Nasdaq Composite (^IXIC) to a win. Traders are bracing for a potential swing of 8% — or $300 billion in market value — in either direction, going by options markets.
Elsewhere in corporates, Target (TGT) muted its outlook for holiday-season sales and profit after posting a big quarterly profit miss and slashing its full-year guidance. The retail giant’s shares sank as much as 18% after the earnings.
Meanwhile, bitcoin (BTC-USD) prices were up 1.4% to trade around $93,722 per token, after touching a record high $94,078 overnight. Optimism for a crypto-friendly Trump White House has spurred the digital currency’s recent rally.
Eyes were on Donald Trump’s team picks, as the market assesses whether he will deliver on his economic and tariff plans. The president-elect on Tuesday tapped TV doctor Mehmet Oz to lead Medicare and Medicaid, and chose Cantor Fitzgerald CEO Howard Lutnick to head up the Commerce Department. That opens up the search for Treasury secretary, with Trump said to be holding interviews on Wednesday.
LIVE 2 updates-
Good morning. Here’s what’s happening today.
Economic data: MBA mortgage applications (Nov. 15)
Earnings: Nvidia (NVDA), Jack In The Box (JACK), NIO (NIO), Palo Alto Network (PANW), Snowflake (SNOW), Target (TGT), TJX (TJX), Williams-Sonoma (WSM)
Here are some of the biggest stories you may have missed overnight and early this morning:
Why Nvidia earnings could be sink-or-swim for the bull market
Target posts big earnings miss, slashes FY guidance
Nvidia traders brace for potential $300 billion earnings move
Comcast to spin off cable TV channels like MSNBC, USA
ECB warns of a ‘bubble’ in AI stocks
‘We’re concerned’: Walmart, Lowe’s warn on Trump tariff boost to costs
-
5 problems with Target’s earnings
It wasn’t a great quarter for Target (TGT) — earnings miss, full year profit warning, and lagging performance versus Walmart (WMT).
I also didn’t like the tone around the business by execs on a call with reporters, of which I was one.
Considering Target hyped a turnaround a few months ago, this quarter is a setback for investors who were warming up to the story again.
Here are five problems I saw in the results: