U.S. stock futures traded mixed on Thursday, with Nvidia’s results weighing on the tech sector, Tesla posting sharp declines in Europe, and Japan’s trade talks with the U.S. facing new uncertainty after Tokyo canceled high-level negotiations.
Nvidia retreats on China concerns
Nvidia (NASDAQ: NVDA) posted strong quarterly results Wednesday, beating analyst expectations with earnings of $1.04 per share and revenue of $46.7 billion. The company also forecast third-quarter revenue of around $54 billion, ahead of Wall Street’s estimate of $52.76 billion.
However, Nvidia’s crucial data center revenue came in below expectations at $41.1 billion, missing the $41.34 billion forecast. The shortfall stemmed from zero sales of H20 chips in China. Shares slid in after-hours trading, wiping out about $110 billion in market value.
CEO Jensen Huang expressed optimism that sales to China could resume after a deal with President Donald Trump, though regulatory uncertainty kept Chinese revenue out of current forecasts. Nvidia’s CFO Colette Kress added that between $2 billion and $5 billion in H20 revenue could be booked if restrictions ease.
U.S. futures mixed
By 02:55 ET, S&P 500 futures rose 0.1%, Dow Jones futures gained 0.3%, while the Nasdaq 100 slipped 0.1%. This came after the S&P 500 closed at a record high on Wednesday. Investors are also awaiting results from Snowflake (NYSE: SNOW), NetApp (NASDAQ: NTAP), and U.S. economic data including jobless claims and second-quarter GDP.
Tesla sales slump in Europe
Tesla (NASDAQ: TSLA) suffered a 40% year-on-year drop in European sales in July, according to the ACEA. Registrations fell to 8,837 units, while market share shrank to 0.8% from 1.4%. January–July sales also dropped 33.6% compared to last year.
The decline came even as battery EV sales across Europe surged 33.6%, reaching 15.6% of the car market. Chinese rival BYD outperformed Tesla with 13,503 sales and a 1.2% share. Tesla’s Model Y refresh has done little to boost demand, while its brand image has been hit by CEO Elon Musk’s ties to President Trump and a German far-right party.
Japan delays trade talks with U.S.
Japan’s chief trade negotiator Ryosei Akazawa canceled a planned trip to Washington, stalling efforts to finalize a $550 billion investment package tied to tariff relief.
Tokyo and Washington had agreed in July to cut tariffs on Japanese imports to 15% in exchange for U.S.-bound investment, but details remain unresolved. Japanese officials stressed investments must also benefit Japan, while Trump touted the deal as profitable for the U.S.
Oil prices fall
Brent crude fell 0.5% to $66.91 per barrel and WTI dropped 0.9% to $63.59 as traders priced in weaker U.S. fuel demand with the end of the summer driving season approaching. The pullback came even after the EIA reported a larger-than-expected crude inventory draw of 2.4 million barrels last week.
