Traders work on the morning trading floor of the New York Stock Exchange on August 23, 2024.
Michael M. Santiago | Getty Images
S&P 500 futures were slightly lower Tuesday night as investors waited to see chipmaker Nvidia report its quarterly earnings after the close of trading on Wednesday.
Futures linked to the Composite Stock Price Index fell 0.16%, while Nasdaq 100 futures dropped 0.31%. Dow Jones Industrial Average futures fell 18 points, or 0.04%.
In after-hours trading, retail giant Nordstrom rose 7% after it reported better-than-expected second-quarter adjusted profit. Semiconductor developer Ambarella rose nearly 20% after outlining strong third-quarter revenue guidance. Calvin Klein parent company PVH fell more than 7% after giving a disappointing outlook for the current quarter.
During Tuesday’s trading session, both the broader market and the tech-heavy Nasdaq Composite Index rose about 0.2%. Nvidia rose about 1.5%, helping lift both indexes, while the Dow Jones Industrial Average rose just 0.02%, hitting a record high for a second straight day.
Wall Street is turning to artificial intelligence leader Nvidia to gauge the sustainability of the tech and AI industries as a whole, with the semiconductor giant seeing a 159% surge in 2024 and raising questions about how much more its stock has room to rise.
Focus for investors will include delivery schedules for Nvidia’s Blackwell chips and updates on AI demand.
“It’s hard to say there’s a lot of optimism priced into the market tomorrow,” Erin Brown, managing director and portfolio manager at Pimco, said Tuesday on CNBC’s “Closing Bell.”
Other AI stocks are trading around 10% below their all-time highs, Brown said, adding that Nvidia’s current valuation is nowhere near its average over the past five years.
“Certainly there’s a lot of optimism priced in, but I still think they can deliver the upside and surprise the market,” Brown said.
On the revenue side, Bath & Body Works, Foot Locker and Kohl’s are all scheduled to report quarterly results Wednesday morning. In addition to Nvidia in the afternoon, investors will also be keeping an eye on Salesforce.
