Today is All About Nvidia

Good morning.

U.S. stock index futures climbed on Wednesday, with the spotlight firmly on Nvidia quarterly results due later in the day that could potentially reignite an artificial intelligence-fueled rally in megacap growth stocks this year.

The broader equity rally has recently faltered, with the benchmark index off more than 4% in August as soaring Treasury yields threaten to dull the allure of stocks. The market’s turbulence is intensifying focus on Nvidia’s fiscal second quarter report.

Nvidia stunned the market with its prior report in May, when a stellar forecast sent its stock soaring 24% in one day. Following that report, the S&P 500 technology sector rallied 8% over the next five days. Nvidia shares amount to the fifth-biggest weight in the S&P 500 and Nasdaq 100, at weights of 3.2% and 4.3%, respectively – meaning that moves in its stock price have an outsized sway on major indexes.

Meanwhile, investors are anticipating Federal Reserve Chair Jerome Powell’s speech on Friday at the central bank’s annual conference for clues on the outlook for interest rates.

On the earnings front, other big-name companies like Analog Devices, Snowflake, and Autodesk are set to report their quarterly figures today.

China’s Shanghai Composite today closed lower as investors maintained caution amid a deepening crisis in the country’s real estate sector, with numerous share buyback announcements failing to boost confidence.

Oil prices continued their decline for the third consecutive session, with WTI crude futures down to nearly $78 per barrel. Gold stabilized around $1,900 an ounce while in the bond markets, United States 10-Year rates are at 4.266%, down -1.45%.

Today is all about Nvidia and Friday will be all about Jackson Hole. Grab some popcorn and enjoy the show.

Have a great day!