US stock futures saw modest gains on Thursday evening, rebounding slightly after a sharp decline following Nvidia’s (NVDA) underwhelming earnings report.
- S&P 500 futures rose by 0.01%.
- Nasdaq 100 futures climbed 0.3%.
- Dow Jones futures inched up by 0.1%.
Nvidia Shares Drop as Earnings Disappoint
Nvidia shares dropped by 8.5% on Thursday, causing its market cap to fall below $3 trillion for the first time since reaching the milestone in June 2024. Despite beating earnings estimates on both the top and bottom lines, the company’s outlook for the first-quarter gross margin came in lower than Wall Street expectations. However, Nvidia’s stock inched up 1% during after-hours trading.
Tariff Concerns Keep Traders on Edge
Concerns over President Donald Trump’s tariff plans continue to weigh on market sentiment. On Thursday, Trump announced plans to double tariffs on China, just a day after threatening to impose new tariffs on Europe. These moves have investors on high alert as trade tensions escalate.
Earnings Reports from Dell and HP
Dell Technologies (DELL) released its earnings report, but its shares remained flat after the bell due to concerns over rising costs for AI servers. Meanwhile, HP (HPQ) saw a 4% drop in after-hours trading, despite meeting earnings expectations.
Key Economic Data Ahead: PCE Inflation Index
Wall Street is now looking to the release of the Personal Consumer Expenditures (PCE) index on Friday. This key measure of inflation, which tracks changes in “core” consumer expenses, is the Federal Reserve’s preferred gauge for inflation. Traders will be closely monitoring the data for further insights into the state of the economy and the Fed’s future policy decisions.
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