Live Updates: S&P 500 Futures Dip as Nvidia’s Earnings Weigh on Market After Record High

Traders are feeling the pressure this week as stock futures took a dip on Wednesday evening. Investors are especially focused on Nvidia. Despite the company beating Wall Street estimates with its latest quarterly results, shares fell about 3% in extended trading. Nvidia is a big player, making up around 8% of the S&P 500, which can greatly influence market trends.

Futures tied to the S&P 500 were down 0.3%, while Nasdaq 100 futures dropped nearly 0.5%. The Dow Jones futures also saw a slight decline. Chip stocks faced a hit too, with competitors like AMD, Taiwan Semiconductor, and Broadcom each falling about 1%.

Even with a record high close for the S&P 500 earlier, the market’s response to Nvidia’s earnings seems off. Investors had set high expectations, and this reaction might just be an overreaction. David Wagner from Aptus Capital Advisors labeled it a “knee-jerk reaction” and encouraged buying during this downturn.

Nvidia is still projecting impressive growth, with guidance indicating the company will exceed 50% growth and a revenue run rate of $50 billion. Art Hogan, chief market strategist at B. Riley Wealth Management, noted that Nvidia’s lack of sales to China during the quarter creates uncertainty. This uncertainty is significant as it holds potential upside if Nvidia can secure a license for its H20 chips for export to China.

The ongoing AI boom remains in its early stages, and Hogan believes investors will feel more optimistic after Nvidia’s CEO, Jensen Huang, delivers further insights on future expectations.

The market had a strong Wednesday, with both the S&P 500 and Nasdaq Composite rising around 0.2%. The overall market seems headed for a monthly gain, with the S&P 500 and Nasdaq up more than 2% and the Dow more than 3%.

Investors are also facing political distractions. Recent comments from former President Trump regarding the Federal Reserve’s independence have raised eyebrows. Trump’s economic adviser suggested dismissing current Fed Board Governor Lisa Cook, leading to concerns about stability in the market.

As of now, investors are keeping a watchful eye on Nvidia and the broader market. The sentiment remains a mix of caution and optimism as the effects of these earnings reports unfold.

For more insights into stock market trends and updates, check out CNBC.

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