U.S. stock futures edged up Wednesday as investors anticipated key earnings from AI heavyweight Nvidia, which could shape market sentiment in the near term. At the same time, hefty U.S. tariffs on Indian imports have now taken effect, while France faces renewed political uncertainty.
Nvidia’s results take center stage
Nvidia (NASDAQ:NVDA), a bellwether for the artificial intelligence (AI) sector, is scheduled to release its fiscal second-quarter results after the U.S. market closes.
After driving much of the year’s rally, tech stocks have cooled recently as investor enthusiasm waned. Nvidia’s results are expected to influence short-term risk appetite, providing insights into whether current valuations for AI leaders are warranted.
The company is forecast to report a 53% rise in second-quarter revenue to $46 billion, according to LSEG data, though this is well below the triple-digit growth seen in previous quarters. Investors will also monitor the outlook for Nvidia’s China business, which depends heavily on U.S.-China trade talks and potential restrictions on chip exports.
U.S. futures gain modestly
Ahead of Nvidia’s results, U.S. futures showed slight gains. At 03:00 ET, S&P 500 futures increased 20 points (0.1%), Nasdaq 100 futures rose 4 points (0.1%), and Dow futures added 15 points (0.1%).
Tuesday’s market close had been positive, buoyed by confidence ahead of Nvidia’s results, with the chipmaker viewed as a key indicator for AI-related developments. Nvidia has exceeded earnings expectations in 11 of its past 12 quarters.
Even though August is historically a tough month for stocks, the three main U.S. indexes are poised for gains: S&P 500 up 2%, Dow Jones Industrial Average up 2.9%, and Nasdaq Composite up 2%.
U.S.-India tariffs now in effect
President Donald Trump’s 50% trade tariffs on Indian goods officially took effect after Washington and New Delhi failed to finalize a deal.
Earlier this month, Trump had announced 25% tariffs, warning they would double in three weeks as a response to India’s continued purchase of Russian oil. July shipping data shows India was Russia’s second-largest oil buyer after Saudi Arabia.
Along with Brazil, India now faces some of the highest U.S. tariff rates globally.
“We estimate 70% ($55 billion) of India’s exports to the United States are now under serious threat, accelerating downside risks to growth,” said Aastha Gudwani, India chief economist at Barclays. “From a ’good friend’ to a ’bad trading partner’, it has come a long way.”
France remains in focus
French markets were under pressure Wednesday following Prime Minister François Bayrou’s failed attempt to win support for his unpopular debt-reduction plan, deepening political and financial uncertainty.
Bayrou had called a confidence vote on September 8, which was rejected by opposition parties, likely cutting short his brief tenure as leader of a minority government.
Should Bayrou fall, President Emmanuel Macron may dissolve parliament for fresh elections or appoint a new government. Neither option is expected to fully resolve France’s fiscal challenges or political deadlock.
The CAC 40 has fallen over 3% this week, while the spread between French and German 10-year government bonds—an indicator of investor risk premium on French debt—widened to around 79 basis points on Tuesday, its highest level since April.
Oil prices stabilize after sharp losses
Oil markets steadied following significant losses in the prior session as traders assessed the impact of new U.S. tariffs on India.
At 03:00 ET, Brent futures fell 0.1% to $66.66 a barrel, while West Texas Intermediate futures rose 0.1% to $63.27 a barrel. Both contracts had dropped over 2% on Tuesday after opening the week at a two-week high.
Goldman Sachs forecasts Brent crude could decline to the low $50s a barrel by late 2026 due to rising global oil surplus.
“We expect the oil surplus to widen and average 1.8 million barrels per day in 2025 Q4 (through) 2026 Q4, resulting in a nearly 800 million barrel rise in global stocks by end 2026,” the U.S. bank said in a client note.
Brent prices are expected to remain near forward contract levels for the rest of 2025 but may fall below those contracts in 2026 as OECD stockpiles increase.
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