Stock futures remained largely flat on Wednesday morning as markets awaited key U.S. inflation data (PCE price index) and Nvidia’s second-quarter earnings report. Nvidia’s results are closely watched as a bellwether for the tech sector and the broader market. Investors are also anticipating comments from Fed officials at the Jackson Hole symposium later in the week, seeking clues on future monetary policy.
U.S. stock futures showed little movement early Wednesday as traders anticipated crucial U.S. inflation data and the latest quarterly results from Nvidia. The S&P 500 and Nasdaq 100 futures were largely unchanged, while Dow futures saw a slight uptick of 0.1% as of 2:48 a.m. ET.
The major averages are coming off a positive trading session, buoyed by falling yields and lower oil prices. The S&P 500 closed up 0.3%, the Nasdaq Composite gained 0.7%, and the Dow Jones Industrial Average advanced 160.24 points, marking its third consecutive day of gains.
In Asian markets, Japan's Nikkei 225 rose 0.61%, and South Korea's Kospi gained 2.04%. Australia's S&P/ASX 200 was down 0.17%. Hong Kong's Hang Seng index was up 0.68%, and mainland China's CSI 300 advanced 1.07%.
Key Economic Data on the Horizon
The main event of the day is the release of July's personal consumption expenditures (PCE) price index at 8:30 a.m. ET. This report is the Federal Reserve's preferred inflation gauge. Economists surveyed by Dow Jones anticipate a 0.1% month-over-month increase and a 3.6% year-over-year rise. In June, the PCE index saw a monthly decrease of 0.1% and an annual increase of 3.7%.
The bond market is also under scrutiny, with U.S. Treasury yields having reached multiyear highs last week. However, yields broadly declined on Tuesday, with the 10-year yield dropping nearly 8 basis points.
Nvidia Earnings and Jackson Hole Symposium in Focus
Tech giant Nvidia is scheduled to report its second-quarter earnings after the market close. Wall Street analysts project earnings per share of $2.09 on revenue of $92.28 billion, according to FactSet. Nvidia's report is considered a significant indicator for the broader market, given its status as the largest S&P 500 company with a market capitalization exceeding $5 trillion.
Additionally, investors are looking ahead to Federal Reserve Chairman Kevin Warsh's speech at the Fed's annual symposium in Jackson Hole, Wyoming, on Friday. However, some analysts suggest Warsh may be cautious with his remarks ahead of the Fed's September monetary policy decision.
Other Market News
- Temasek-backed investor highlights Singapore as a route for Chinese robots to the U.S.
- U.S. dollar slightly higher ahead of economic data and Jackson Hole.
- Bitcoin trading flat as short-covering rally fades.
- Alibaba shares gained 3% following executive share purchases.
- Oil prices fell amid easing concerns of renewed tensions as the U.S. pivots to economic pressure on Iran.
- SK Innovation shares plunged 16% on plans to merge its battery materials unit.
- Asia-Pacific markets opened mixed.
- Falling oil prices are viewed as bullish for equities by some analysts.
- Bitcoin is not oversold but not overbought yet, according to technical analysis.
- Zoom shares fell on disappointing guidance.
