U.S. stock index futures were little changed early Wednesday, suggesting a muted open as investors hesitate to take strong positions ahead of Nvidia’s (NASDAQ:NVDA) highly anticipated quarterly report.
The chipmaker, a leader in AI and market momentum, is set to post its second-quarter results after today’s closing bell. Shares were up 0.5% in pre-market trading, extending Tuesday’s 1.1% advance.
With no major U.S. economic data scheduled for release today, market participants are looking ahead to Friday’s Commerce Department report on personal income and spending for July. That release includes the Federal Reserve’s preferred inflation gauge. Consensus expectations call for the core annual inflation rate to rise slightly to 2.9% in July from 2.8% in June, a reading that could shape the Fed’s next policy decision.
According to CME Group’s FedWatch Tool, markets are currently pricing in an 88.2% probability of a quarter-point rate cut at the September FOMC meeting. Upcoming data on weekly jobless claims, pending home sales, and a revised estimate of Q2 GDP could also sway sentiment later in the week.
On Tuesday, stocks struggled for direction through much of the day but managed to close higher, reversing Monday’s losses. The Nasdaq gained 94.98 points, or 0.4%, to finish at 21,544.27, while the S&P 500 rose 26.62 points, or 0.4%, to 6,465.94. The Dow added 135.60 points, or 0.3%, to end at 45,418.07. Each index closed just off session highs.
The day’s choppy trading reflected investor caution ahead of Nvidia’s earnings, but stocks still found support from easing short-term Treasury yields. The move in bonds came as traders speculated that political interference from President Donald Trump could hasten rate cuts.
In a Truth Social post on Monday, Trump declared he was removing Fed Governor Lisa Cook from office, citing alleged misrepresentations on mortgage agreements. Cook rejected the claim, asserting Trump has no authority to dismiss her. She stated she would contest the action in court, while the Federal Reserve announced it will “abide by any court decision.”
Sector-wise, airline stocks stood out with a strong rally, pushing the NYSE Arca Airline Index up 2.3% to its best close in six months. Gold miners also saw robust gains, as the NYSE Arca Gold Bugs Index climbed 2.2% to its highest finish in 12 years amid firmer bullion prices. Networking shares rallied as well, with the NYSE Arca Networking Index jumping 2.1%. Banking, pharmaceutical, and brokerage names posted solid advances, while oil service stocks lagged on the back of a sharp drop in crude oil prices.
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