New York, New York – Investors are on edge as they await chipmaker Nvidia’s quarterly earnings announcement after the bell on Wednesday. The S&P 500 futures dipped slightly on Tuesday night, signaling a sense of anticipation in the market. Nasdaq 100 futures also saw a decline, while Dow Jones Industrial Average futures experienced a minor setback.
After-hours trading saw Nordstrom’s stock rise by 7% following their impressive earnings report for the second quarter. Ambarella, a semiconductor developer, witnessed a substantial 20% increase after providing optimistic revenue guidance for the third quarter. Conversely, PVH, the owner of Calvin Klein, faced a disappointing outlook leading to a more than 7% slump.
During the trading day on Tuesday, both the broad market index and the Nasdaq Composite experienced modest gains. Nvidia’s stock saw a 1.5% increase, uplifting both indexes. The Dow also managed a slight 0.02% rise, marking a second consecutive record close.
Investors are closely monitoring Nvidia’s performance, as the company plays a pivotal role in the artificial intelligence sector. With Nvidia’s stock soaring 159% in 2024, there are concerns about its future trajectory. Delivery schedules for Nvidia’s Blackwell chips and the demand for AI are key focal points for investors.
Market analyst Erin Browne of Pimco highlighted the market’s optimism but mentioned that Nvidia’s valuation is not exorbitant compared to its historical average. Looking ahead, Bath & Body Works, Foot Locker, and Kohl’s are among the companies scheduled to report earnings on Wednesday morning. Additionally, focus will be on Salesforce’s earnings announcement alongside Nvidia’s in the afternoon.