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Stock futures pointed lower early Thursday, led by technology stocks after Nvidia’s earnings report left investors disappointed.
Futures on the tech-heavy Nasdaq 100 were 0.5% down, S&P 500 futures fell 0.4% and Dow Jones Industrial Average futures slipped 0.3%. There was a lack of direction Wednesday in anticipation of the chip maker’s earnings–the Dow eked out gains Wednesday, while the S&P 500 was flat and the Nasdaq Composite closed 0.1% down.
Nvidia’s earnings have become a key event for markets, and Wednesday’s report was no different. The company beat expectations in its fiscal third quarter, and its outlook for the January quarter also topped estimates.
But after Nvidia’s 195% gain so far in 2024, it wasn’t enough to lift the shares higher in after-hours trading–the stock dropped 2.5%. Such a fall for the S&P 500’s most valuable company is likely to weigh on stocks, if the losses hold through to the open and beyond.
However, the post-earnings reaction could’ve been much worse–the stock fell 6.4% after its previous quarterly report at the end of August. Deutsche Bank strategist Jim Reid said the early futures action suggested the “potential high-volatility event has broadly passed without major incident,” in a note early Thursday.
