U.S. stock futures showed mixed activity Thursday, with Nvidia’s earnings pressuring technology stocks. At the same time, Tesla’s European sales fell sharply in July, and uncertainty over the U.S.-Japan trade deal emerged after Tokyo’s chief negotiator canceled a planned visit to Washington.
Nvidia Slips on China Concerns Despite Strong Earnings
Nvidia (NASDAQ:NVDA) reported impressive quarterly results Wednesday after markets closed, exceeding analysts’ expectations and projecting third-quarter revenue above Wall Street estimates.
Yet weaker-than-expected data center revenue and questions about China caused investors to question its high valuation, sending shares lower in after-hours trading. The drop erased roughly $110 billion from Nvidia’s $4.4 trillion market value.
Nvidia earned $1.04 per share in Q2, beating the $1.01 forecast, and posted revenue of $46.7 billion. It projects Q3 revenue of $54 billion, plus or minus 2%, above the $52.76 billion analysts’ estimate. However, its largest segment—data center revenue—came in at $41.1 billion, below the $41.34 billion estimate, due mainly to no H20 chip sales in China during the quarter.
CEO Jensen Huang noted that he expects permission to resume chip sales to China following a deal with U.S. President Donald Trump to pay commissions to the U.S. government. “But with no formal U.S. rules in place and questions about whether Chinese regulators will discourage purchases of Nvidia chips,” the company excluded potential China sales from its Q3 guidance.
CFO Colette Kress said, “the company will ship between $2 billion and $5 billion in H20 revenue in the current quarter, if geopolitical issues were to subside.” She added that the China outlook remains highly uncertain.
Futures Mixed as Nasdaq Underperforms
Early Thursday, S&P 500 futures ticked up 2 points (0.1%), Dow futures gained 127 points (0.3%), and Nasdaq 100 futures fell 17 points (0.1%). Wednesday saw record highs for the S&P 500, with all three major indices tracking monthly gains: S&P 500 and Nasdaq Composite up more than 2%, and the Dow up over 3%.
Investors are also watching results from Snowflake (NYSE:SNOW) and NetApp (NASDAQ:NTAP), alongside weekly jobless claims and Q2 GDP data.
Tesla Sales Drop 40% in Europe
Tesla (NASDAQ:TSLA) saw a steep decline in European sales, according to the European Automobile Manufacturers’ Association (ACEA). The company lagged behind Chinese rival BYD, which captured a larger market share in the region.
ACEA data showed Tesla’s EU, EFTA, and U.K. new registrations fell more than 40% year-on-year, with market share declining to 0.8% from 1.4%, and January–July sales down 33.6%. Meanwhile, total battery EV sales jumped 33.6% in July, making up 15.6% of the European market, behind petrol at 28.3% and hybrids at 34.7%.
Tesla’s updated Model Y had little impact, while competition from European automakers intensified. CEO Elon Musk’s endorsement of President Trump and links to a German far-right party have also hurt Tesla’s reputation in Europe.
Japan Trade Talks Postponed
Ryosei Akazawa, Japan’s top trade negotiator, canceled a U.S. visit, delaying discussions over a $550 billion investment package tied to tariff reductions.
“It was found that there are points that need to be discussed at the administrative level during coordination with the American side. Therefore, the trip has been cancelled,” Japan’s government spokesperson Yoshimasa Hayashi said Thursday.
Earlier agreements set a 15% tariff on Japanese imports in exchange for U.S.-bound investments backed by loans and guarantees. Trump described it as “our money to invest,” retaining 90% of profits, while Japanese officials emphasized that investments must also benefit Japan.
Oil Prices Ease
Oil prices fell on expectations of lower U.S. demand as the summer driving season winds down. At 02:55 ET, Brent fell 0.5% to $66.91 per barrel, and WTI dropped 0.9% to $63.59.
Crude rose in the previous session after the Energy Information Administration reported a 2.4 million-barrel draw in U.S. inventories, exceeding analysts’ 1.9 million-barrel forecast. While demand was strong ahead of Labor Day, the end of summer typically signals a slowdown in U.S. fuel consumption.
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