The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a lower open on Wednesday, with stocks likely to see further downside after ending Tuesday’s choppy trading session modestly lower.
A steep drop by Nvidia (NASDAQ:NVDA) is likely to weigh on the markets, as the AI darling is plunging by 6.8 percent in pre-market trading.
The slump by Nvidia comes after the company said its first quarter results are expected to include up to approximately $5.5 billion of charges associated with its H20 integrated circuits.
Nvidia noted in an SEC filing that the U.S. government now requires a license for the export of the graphics processing units to China and other countries.
Dutch chipmaker ASML (NASDAQ:ASML) is also seeing significant pre-market weakness after warning of increased uncertainty around its outlook for 2025 and 2026 due to U.S. tariffs.
However, the negative sentiment may be partly offset by a Commerce Department report showing a sharp increase by U.S. retail sales in the month of March.
After ending Monday’s volatile session notably higher, stocks continued to show a lack of direction over the course of the trading day on Tuesday. The major averages bounced back and forth across the unchanged line before eventually closing modestly lower.
The Dow fell 155.83 points or 0.4 percent to 40,368.96, the S&P 500 dipped 9.34 points or 0.2 percent to 5,396.63 and the Nasdaq edged down 8.32 points or 0.1 percent to 16,823.17.
The choppy trading on Wall Street came as traders took a step back to digest the latest earnings news as well as developments on the volatile tariff front.
President Donald Trump has indicated a potential temporary tariff exemption for the auto industry, especially for counties like Mexico and Canada.
At the same time, there were reports that the U.S. was kicking off investigations into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs.
On the U.S. economic front, the Labor Department released a report showing import prices edged slightly lower in the month of March.
The Labor Department said import prices slipped by 0.1 percent in March after rising by a downwardly revised 0.2 percent in February.
Economists had expected import prices to come in unchanged compared to the 0.4 percent increase originally reported for the previous month.
Meanwhile, the report said export prices were flat in March after climbing by an upwardly revised 0.5 percent in February.
Economists had expected export prices to come in unchanged compared to the 0.1 percent uptick originally reported for the previous month.
A separate report released by the Federal Reserve Bank of New York showed New York manufacturing activity has declined modestly in the month of April.
While most of the major sectors ended the day showing only modest moves, banking stocks saw notable strength, resulting in a 1.7 percent gain by the KBW Bank Index.
Bank of America (NYSE:BAC) and Citigroup (NYSE:C) ended the day firmly positive after reporting better than expected first quarter results.
Networking stocks also saw some strength on the day, while transportation stocks moved to the downside, dragging the Dow Jones Transportation Average down by 1.1 percent.
Dow Jones, S&P, Nasdaq, Slump By Nvidia May Weigh On Wall Street
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