U.S. stock futures climbed higher Wednesday ahead of the release of key activity data as well as more quarterly earnings, including from new market darling, chipmaker Nvidia.
By 06:30 ET (10:30 GMT), the Dow Futures contract was up 115 points, or 0.3%, S&P 500 Futures traded 20 points, or 0.4%, higher and Nasdaq 100 Futures climbed 80 points, or 0.5%.
The blue-chip Dow Jones Industrial Average and the broad-based S&P 500 gave up some of their recent gains Tuesday, closing 0.5% and 0.3% lower respectively.
This followed weakness in a number of retail stocks, including Dick’s Sporting Goods (NYSE:DKS), which fell 24% in its worst daily performance ever after slashing its full-year earnings guidance, and Macy’s (NYSE:M), which dropped 14% as net sales fell 8% in the second quarter on an annual basis.
There are more retailers due to report before the bell Wednesday, including Kohl’s (NYSE:KSS), Peloton (NASDAQ:PTON), Foot Locker (NYSE:FL), Abercrombie & Fitch (NYSE:ANF) and Bath & Body Works (NYSE:BBWI).
Nvidia results could sway market sentiment
The earnings highlight, however, is likely to come after the closing bell, as the world’s most valuable chip designer, Nvidia (NASDAQ:NVDA), releases its latest quarterly numbers.
The California-based company, which manufactures the graphics processors that power generative artificial intelligence, has been at the center of global euphoria around the development of the nascent technology.
Its shares have tripled this year, propelling the stock’s market capitalization to above $1 trillion, and its outlook for the rest of the year could influence the near-term course of not only the AI boom, but broader market sentiment.
U.S. economy shows resilience
Investors will also be looking at economic data on new home sales, building permits and flash PMIs for both manufacturing and services sectors.
Recent data, including hotter-than-expected retail sales and increasing consumer confidence, has pointed to resilience in the U.S. economy despite the series of interest rate hikes to combat inflation.
This prompted Richmond Fed President Thomas Barkin to warn that the U.S. central bank must be ready to address a reacceleration in the country’s economy ahead of the Fed’s annual symposium at Jackson Hole, Wyoming, starting at the end of the week.
The news out of Europe was less impressive Wednesday, after the flash readings of monthly surveys suggested a second month in a row of eurozone, and U.K., business contraction.
Crude retreats on European economic woe
Oil prices weakened Wednesday as the weak PMI readings in Europe reminded traders that demand will likely be affected in the second half of the year from this large group of consumers.
On a more positive note, U.S. crude inventories dropped by about 2.4 million barrels last week, according to data from industry body American Petroleum Institute, with the Energy Information Administration, the statistical arm of the U.S. energy department, set to confirm this draw later Wednesday.
By 03:30 ET, U.S. crude futures traded 1.5% lower at $78.47 a barrel, while the Brent contract dropped 1.4% to $82.84.
Additionally, gold futures rose 0.2% to $1,930.40/oz, while EUR/USD traded 0.3% lower at 1.0807.
(Oliver Gray contributed to this item.)
