Traders on the floor of the New York Stock Exchange were buzzing with excitement on Wednesday as stock futures climbed higher. Investors were eagerly awaiting the second-quarter results from chipmaker Nvidia, hoping to gauge whether the hype around artificial intelligence (AI) was justified.
S&P 500 futures rose by 0.73%, while Nasdaq 100 futures gained 1.26%. Dow Jones Industrial Average futures also saw a modest increase of 0.17%.
Nvidia did not disappoint with its second-quarter earnings report. The company reported earnings of $2.70 per share after adjustments on $13.51 billion in revenue, surpassing the average analyst estimate. This strong performance further fueled investor interest in AI, which has been a major market driver in the first half of the year. In fact, Nvidia’s value has soared to over $1 trillion.
The company also raised its forecast, predicting that third-quarter revenue would reach $16 billion, representing a 170% increase on an annual basis. This news had a ripple effect on the broader semiconductor industry, with shares of Taiwan Semiconductor, AMD, and Marvell Technology all trading higher in after-hours trading.
Investors are also eagerly awaiting comments from Federal Reserve Chair Jerome Powell, who is set to speak at the Jackson Hole Symposium in Wyoming on Friday. They hope his remarks will provide insight into the future path of benchmark interest rates.
In other news, India is expected to ban sugar exports from October due to lower cane yields caused by a lack of rainfall. This would be the first ban on sugar exports in seven years and comes after India’s export ban on non-basmati white rice and a 40% export tax on domestic onions.
Meanwhile, the Bank of Korea decided to hold its benchmark policy rate at 3.5%, in line with economists’ expectations. The South Korean won strengthened slightly against the US dollar following the announcement.
South Korea’s producer price index grew by 0.2% year-on-year in July, marking the 13th consecutive month of slowing growth. This was lower than the revised figure for June and the lowest rate of growth since December 2020.
Boeing shares fell about 3% in extended trading after the company announced a manufacturing flaw that would slow deliveries of its 737 Max aircraft. Although the issue does not impact safety, Boeing will need to conduct inspections to determine the extent of the problem.
Lastly, the latest Investors Intelligence survey revealed a surge in the percentage of financial newsletter editors and advisors who anticipate short-term weakness in stocks. This count reached an 11-month high, indicating a cautious sentiment among market participants.
Overall, the positive earnings report from Nvidia and the performance of semiconductor stocks have contributed to the upward momentum in stock futures. Traders will continue to closely monitor market developments and upcoming events for further insights into the direction of the market.
