Nvidia Forecast Misses Lofty AI Hopes; Traders Eye Inflation, GDP – Europe Market Wrap
US stock futures shook off an early drag from Nvidia Corp.’s sales outlook missing lofty expectations, as traders shifted their focus to upcoming economic data that will shape the outlook for interest rates.
S&P 500 contracts erased losses, signaling the US benchmark will hold steady at Wednesday’s record high. European stocks fell 0.2%. Nvidia dropped 1.9% in premarket trading, joining Tesla Inc. as the only decliners among Magnificent Seven stocks.
In global debt markets, the yield on 30-year Treasuries fell one basis points to 4.91% as pressure on long-dated debt eased. Longer term bonds in Europe traded mixed, with French notes staging a rebound. The dollar fell 0.2% for a third day of losses.
Investors turned to Nvidia’s earnings for insight into the artificial intelligence boom that has driven equity gains in 2025. Although its revenue forecast pointed to a slowdown after two years of surging investment, management pushed back against the idea that demand for AI infrastructure is waning.
With Nvidia’s results now mostly wrapping up the earnings season, traders will again turn their attention to next month’s Federal Reserve interest rate decision. They’re also watching US President Donald Trump’s unfolding battle with the Fed and any efforts to reshape the policy committee.
Initial jobless claims data, along with revised second-quarter gross domestic product figures, are due later Thursday. The GDP report is forecast to show personal consumption picked up to a moderate pace after a sluggish start to 2025. Friday’s core PCE index – the Fed’s preferred inflation gauge – is expected to edge higher, highlighting policymakers’ challenge of taming prices without further straining a softening labor market.
