Stocks Market Today: Stocks higher as markets brace for Nvidia earnings
Nvidia could provide a key catalyst to a market that continues to lag its European peers this year.
U.S. equity futures moved higher in early Wednesday trading, while Treasury yields and the dollar held steady, as Wall Street looked to snap a four-day losing streak while bracing for a crucial set of fourth quarter earnings from AI chipmaker Nvidia.
Stocks ended firmly lower in Tuesday, dragging the S&P 500 into its fourth consecutive decline and deepening if February slump to around 0.95%, amid persistent concerns over the impact of tariff, immigration and foreign policy objectives from President Donald Trump.
Focus Wednesday, however, is likely to shift back to corporate earnings strength, particularly in the tech sector, with Nvidia (NVDA) and Salesforce (CRM) slated to update investors, and guide the market on near-term profits after the closing bell.
Analysts expect Nvidia to forecast April-quarter revenue in the region of $41.75 billion, suggesting a 60% growth rate, with data center sales rising 65% to $37.21 billion. Shutterstock
For the three months ended in January, the final quarter in Nvidia's fiscal year, Wall Street is looking for overall revenue of $38.05 billion, a 72% increase from last year, with data center sales rising 82% to $33.6 billion.
Heading into the start of the trading day, stocks are also getting a boost from last night's budget 'blueprint' vote on Capitol Hill, narrowly won by Republicans, which moves the broader process another step forward and increases the chance of extending the 2017 Trump tax cuts.
Related: Nvidia earnings can kickstart a comeback for U.S. stocks
Futures contacts tied to the S&P 500 suggest a 28 point opening bell gain, with the Dow Jones Industrial Average called 130 points higher.
The tech-focused Nasdaq is priced for a 110 point gain with Nvidia, Tesla (TSLA) and Palantir (PLTR) active in premarket trading.
Lowe's Companies (LOW) shares were also in focus, rising 2.7% to $249.301 each following stronger-than-expected fourth quarter earnings and solid holiday sales growth.
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Stocks in Europe, meanwhile, hit another all-time high in early Frankfurt trading following reports that the United States and Ukraine have agreed terms to a deal that would trade its rare earth mineral rights for undefined terms of military protection and financial support.
Overnight in Asia, Japan's Nikkei 225 hit a four-month low in early trading, but clawed its way to a 0.25% gain even with the yen extending further gains against the U.S. dollar.
The region-wide MSCI ex-Japan index, meanwhile, was marked 1.17% higher into the close of trading.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
