US Stock Futures Declined Before Nvidia Earnings – Europe Market Wrap
Worries about Nvidia’s capacity to deliver another big earnings beat led US market futures lower on Wednesday, with investors questioning the long-term viability of the AI frenzy.
S&P 500 futures down 0.2%, while Nasdaq contracts fell 0.5%, implying that Wall Street could be in for a third day of losses. Nvidia slumped 1.7% in pre-market trading, following a 4.4% decline yesterday. The corporation is scheduled to report results following the closure.
The 10-Yr Treasury yield fell one basis point, but the dollar index was constant.
Meanwhile, Europe’s stock benchmark fell from near-record highs on dismal earnings from several of the region’s largest companies.
The STOXX Europe 600 index moved lower, remaining approximately four points below its January 2022 peak. Banks were among the major decliners, with HSBC falling more than 7% after reporting an 80% drop in fourth-quarter profits.
UK Chief Secretary to the Treasury: We will not speculate if tax cuts are affordable in the budget, but the economy is beginning to turn the corner.
The Japanese government downgrades its view on the economy for the first time since November 2023.