What Happened
U.S. stock futures, including those linked to the Dow Jones Industrial Average, fell below breakeven late Tuesday, as Wall Street prepared for a crucial earnings report from Nvidia. Futures contracts on the S&P 500 and Nasdaq 100 also declined by approximately 0.1%. This muted action followed a strong regular trading session where the S&P 500, Nasdaq Composite, and Dow all experienced gains, driven by a rally in technology shares.
Why It Matters
The decline in Dow futures comes after a day of positive movement in U.S. equities, where the Dow rose by 370.44 points, or 0.76%, closing at 49,174.50. This increase was bolstered by significant gains in stocks such as Home Depot and Advanced Micro Devices (AMD). The market’s focus is now shifting towards Nvidia’s quarterly results, which are expected to provide insights into the tech sector’s performance amid ongoing concerns about artificial intelligence’s impact on various industries.
What’s Next
Looking ahead, traders are not only focused on Nvidia’s earnings report due Wednesday but are also monitoring geopolitical developments, including rising tensions between the U.S. and Iran. Additionally, former President Trump is set to deliver his 2026 State of the Union address, which may provide further clarity on future trade policies. As earnings season continues, investors will be keenly observing the outcomes from other major companies like Salesforce and Snowflake.
