US markets
US equity futures edged lower on Wednesday night as investors assessed Nvidia’s latest earnings report and whether the results justified the elevated expectations surrounding the artificial intelligence sector.
S&P 500 futures slipped 0.3%, while Nasdaq 100 futures fell 0.4%. Dow Jones futures were down 52 points, or 0.1%.
Nvidia reported earnings and guidance ahead of Wall Street forecasts and also announced an increase in its quarterly cash dividend to 25 cents a share. However, the company’s shares moved lower in extended trading, last down 1.4%, as investors appeared to take profits following the stock’s strong recent rally.
Markets have increasingly expected Nvidia to comfortably exceed expectations amid ongoing demand linked to artificial intelligence infrastructure and semiconductor spending.
The reaction to Nvidia’s results comes after US sharemarkets rallied during Wednesday’s regular session, snapping a three-day losing streak for the S&P 500 as oil prices and bond yields eased.
Investor sentiment was also supported after President Donald Trump said the US was in the “final stages” of negotiations with Iran, raising hopes that the Iran war may move closer to resolution.
Outside technology, Intuit fell more than 14% in after-hours trading after reporting weaker-than-expected revenue and announcing plans to reduce its workforce by around 17%, or approximately 3,000 employees.
Oil and macro
Oil prices and bond yields eased as investors responded positively to signs of progress in negotiations between the United States and Iran. The pullback in yields provided some relief for equity markets after recent volatility linked to inflation concerns and elevated energy prices. Markets also continued monitoring the outlook for US inflation and consumer demand as investors assessed whether easing energy prices could reduce pressure on households and broader economic activity.
Australian Market Outlook
Australian shares are expected to open cautiously following mixed moves in US futures after Nvidia’s earnings report failed to significantly exceed already elevated market expectations.
Technology stocks are likely to remain in focus locally following Nvidia’s results and broader volatility across semiconductor and artificial intelligence-linked companies.
Investor attention on Thursday will also turn to US economic data, including jobless claims, housing and manufacturing figures, for further insight into the outlook for the US economy and interest rates.
Corporate earnings remain another key focus globally, with Walmart due to report before the US market open and Workday scheduled to release results after the close.
