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 The index tracking the broader market index fell 0.16%. Nasdaq 100 Futures It fell 0.31%. Dow Jones Industrial Average Futures fell 18 points, or 0.04 percent.
For activities outside business hours, Nordstrom The stock rose 7% after the retailer reported better-than-expected second-quarter adjusted profit. Ambarella The stock price rose nearly 20% on the back of strong third-quarter earnings guidance. PVHThe Calvin Klein parent company saw its shares fall more than 7% after giving a lackluster outlook for the current quarter.
Broad market indexes and tech-heavy stocks were the biggest contributors to the gains in Tuesday’s trading session. Nasdaq Composite Index Both rose about 0.2%. NVIDIA It recorded an increase of about 1.5%, pushing up both indexes. DowMeanwhile, the rose just 0.02%, hitting a record high for the second consecutive 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 about 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.
