Stock futures ticked higher early Thursday as investors digested Nvidia’s latest earnings results. The S&P 500 inced higher, adding 0.28%, while the Dow Jones Industrial Average added 65 points, or 0.15%. Nvidia shares rose slightly after beating expectations on the top and bottom lines.
The company issued strong guidance, reflecting continued demand driven by the artificial intelligence race. However, shares of Snowflake slid 5% following disappointing earnings and light guidance. On Wednesday, the market saw mixed results as stocks retreated from session highs amid investor concerns over President Donald Trump’s trade policies.
During his first cabinet meeting, Trump announced that tariffs against Canada and Mexico would take effect and indicated a 25% tariff on goods from the European Union. The S&P 500 eked out just a 0.01% gain, ending its four-day streak of losses, while the 30-stock Dow dropped 188 points, or about 0.4%. The tech-heavy Nasdaq Composite added nearly 0.3%.
“Caution is warranted. The remarkable strength of equities in recent months suggests that any downside should be approached with care,” said Fawad Razaqzada, market analyst at Forex. “For the bulls, a corrective move lower wouldn’t be unwelcome, as it could present more attractive entry opportunities in the future.
But today, everything else may well play second fiddle to Nvidia’s earnings result.”
Indeed, a flurry of recent economic reports — including a softer-than-expected consumer confidence reading, disappointing retail sales numbers, and a weak consumer sentiment reading — have rattled stocks and raised concerns about the health of the U.S. economy. Traders will have an eye on Thursday’s weekly jobless claims, but they’re particularly looking ahead to Friday’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge.
Nvidia earnings bolster investor sentiment
Shares of Snowflake surged more than 9% in after-hours trading following the company’s better-than-expected fourth-quarter report. The data cloud analytics company reported adjusted earnings of 30 cents per share on revenue of $987 million, beating analysts’ expectations. Meanwhile, Nvidia shares edged about 0.6% higher on its strong earnings report.
Nvidia’s revenue rose 78% in the latest quarter, and full fiscal-year revenue soared 114% to $130.5 billion, driven by robust demand. Salesforce shares also saw a modest increase, inching higher by less than 1% after reporting adjusted earnings of $2.78 per share, surpassing analysts’ expectations of $2.61 per share. However, its revenue of $9.99 billion fell slightly short of forecasts, causing a minor drag on its share price.
S&P 500 futures opened higher Wednesday evening, climbing nearly 0.2%, while Nasdaq-100 futures jumped 0.3%. Conversely, Dow Jones futures dropped 32 points, or nearly 0.1%. Investors remain cautious despite some positive movement, with Fidelity Investments’ Jurrien Timmer noting that roughly half of S&P 500 names are showing upward momentum.
“Everyone is just waiting, it seems. You don’t want to sell in case the rollercoaster arrives safely. But who is left to buy following the strong inflows since the election?” Timmer remarked.
“The equal-weighted S&P 500 index remains below its highs set on November 29th, and only 53% of stocks are above their 50-day moving average. We are in a ‘buy the rumor, wait for the news’ mode.”
As the market grapples with mixed economic signals and ongoing geopolitical concerns, investors continue to seek direction, especially with key earnings and economic reports on the horizon.
