US stock futures trod water on Wednesday after another tech-led selloff, in the countdown to closely watched earnings from Nvidia (NVDA) that will set the tone for the next leg of the AI trade.
Futures on the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) hovered above the flat line. Contracts on the tech-heavy Nasdaq 100 (NQ=F) were also little changed.
The lackluster moves followed another down day for stocks. The Dow (^DJI) and S&P 500 (^GSPC) logged their fourth straight decline, while the Nasdaq Composite (^IXIC) fell for the fifth time in six sessions. Bitcoin (BTC-USD) briefly dipped below $90,000 before regaining some ground, in a sign investors are losing appetite for riskier assets.
Investors are now bracing for Nvidia’s third-quarter earnings, due after Wednesday’s close. Options trading indicates the stock could move of up to 7% in either direction — a swing of over $300 billion in market value. But recent apparent profit-taking in megacap names suggests investors are questioning whether tech valuations have stretched too far.
Earnings from Target (TGT), Lowe’s (LOW), and TJX Companies (TJX) are due before the opening bell. With fresh economic data still sparse after the federal government shutdown, the big-box retailer results could offer the clearest read on the state of US consumer spending heading into the holiday season.
The first major post-shutdown data release is expected on Thursday, with the delayed arrival of the September jobs report. The labor figures will help shape expectations for the Federal Reserve’s next policy moves, with traders split on whether the central bank will cut interest rates in December.
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