New York, Aug 26: US stock futures were largely steady on Wednesday as investors waited for two major market events — Nvidia’s quarterly earnings report and fresh inflation data that could influence expectations for Federal Reserve interest-rate policy.
Dow futures were up about 0.1%, while S&P 500 futures were little changed and Nasdaq 100 futures edged lower. The cautious trading came after all three major US indexes gained in the previous session, helped by strength in artificial intelligence-related stocks.
Oil prices continued to fall as investors responded to signs of progress in diplomatic efforts aimed at easing tensions in the Middle East and improving shipping conditions through the Strait of Hormuz. Lower oil prices have helped reduce some concerns about inflation and the potential impact of higher energy costs on the global economy.
Nvidia remained the main focus for investors. The chipmaker was scheduled to release its latest quarterly results after the close of trading, with the numbers expected to provide a fresh indication of whether companies are continuing to spend heavily on artificial intelligence infrastructure.
Market expectations remain high for Nvidia, whose chips are widely used in data centres and advanced AI systems. Investors will be looking beyond the quarterly numbers for clues about future demand, spending by major technology companies and the transition from its current Blackwell chips to newer products.
The results could have a wider impact on technology stocks because Nvidia has become one of the most important companies in the global AI investment cycle. Strong guidance could strengthen confidence in AI-related shares, while signs of slowing demand could lead investors to reassess high valuations across the sector.
Investors are also awaiting the latest reading of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation. The data could influence expectations about the central bank’s next moves on interest rates.
Trade tensions are another concern for markets. Canada has announced retaliatory tariffs on a range of US goods, adding another layer of uncertainty for businesses and investors.
On the previous trading day, US markets benefited from gains in AI-related stocks, falling oil prices and a rise in government bond prices. However, weaker consumer confidence and disappointing new-home sales data limited the broader advance.
For now, Wall Street is taking a cautious approach. Nvidia’s earnings, the upcoming inflation data, oil prices and developments around the Strait of Hormuz are likely to remain key factors shaping market sentiment in the near term.