U.S. stock index futures traded mostly steady on Wednesday as investors stayed cautious ahead of closely watched earnings from AI leader Nvidia.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average rose 15 points, or 0.1%, while the S&P 500 dipped 2 points, or 0.1%. The NASDAQ Composite also fell 23 points, or 0.1%.
Despite August’s reputation as a volatile month for equities, the three main indexes are on track to finish higher. The S&P 500 is up 2% this month, the Dow Jones has gained 2.9%, and the Nasdaq is also up 2%.
Nvidia earnings in focus
Nvidia will release its fiscal second-quarter results after the closing bell. The AI chipmaker, seen as a benchmark for the artificial intelligence boom, has driven much of this year’s tech rally but has cooled recently as enthusiasm eased.
Analysts expect revenue growth of 53% to $46 billion, according to LSEG data. While still strong, this is far below the triple-digit growth of recent quarters, raising questions about whether Nvidia’s sky-high valuation remains justified. Investors will also be closely watching guidance, particularly regarding its China business, which faces uncertainty amid ongoing tariff talks and trade restrictions between Washington and Beijing.
Fed independence under scrutiny
Attention also turned to political developments, with President Donald Trump moving to remove Fed Governor Lisa Cook, accusing her of mortgage fraud. Cook denied the allegations and said she will take legal action to defend her position. Her term runs until 2038, meaning a prolonged legal battle could unfold.
The move comes as Trump and his allies press for immediate interest rate cuts, something the Fed has resisted due to inflation and labor market concerns. The attempt to shake up the central bank has sparked debate about the Fed’s independence and its long-term credibility, a principle historically protected from political influence.
Corporate earnings round-up
Beyond Nvidia, several companies reported results:
- Kohl’s (NYSE:KSS) stock jumped after raising its annual profit outlook while cutting costs ahead of the holiday season.
- MongoDB (NASDAQ:MDB) rose after beating Q2 earnings estimates and raising its full-year guidance.
- Okta (NASDAQ:OKTA) gained following strong earnings and an upgraded revenue forecast.
- PVH (NYSE:PVH) climbed after stronger sales and new celebrity-driven deals boosted its yearly outlook.
- Williams-Sonoma (NYSE:WSM) reported better-than-expected Q2 earnings, lifting shares.
- Canada Goose (NYSE:GOOS) soared on news that Bain Capital, its controlling shareholder, received buyout bids valuing the luxury retailer at $1.4 billion.
Oil prices steady
Oil markets stabilized after sharp declines in the previous session. At 09:35 ET, Brent crude was up 0.2% at $66.83 per barrel, while West Texas Intermediate (WTI) rose 0.3% to $63.45. Both contracts had fallen over 2% on Tuesday after starting the week at two-week highs. Traders remain focused on the impact of new U.S. tariffs on India, the world’s third-largest crude consumer.
