U.S. stock index futures were softer on Wednesday night as investors digested a mix of corporate earnings and macro signals, assessing whether Nvidia’s robust quarterly report is sufficient to justify its elevated valuation and to continue supporting gains across AI-related names.
By 20:07 ET (00:07 GMT), S&P 500 Futures had slipped 0.4% to 7,422.0 points, Nasdaq 100 Futures were down 0.7% at 29,200.75 points, and Dow Jones Futures traded 0.3% lower at 49,971.0 points.
Nvidia posts beat but shares ease after hours
Nvidia (NASDAQ:NVDA) reported quarterly results that beat expectations, provided an upbeat second-quarter revenue forecast and announced an $80 billion share buyback. Despite that, the stock fell 1.3% in after-hours trading. The company’s report arrived after a session in which the Nasdaq had already climbed 1.6% ahead of the earnings release, reflecting elevated investor enthusiasm for AI chip demand.
Options markets had anticipated significant movement around the print - Reuters reported implied volatility priced in roughly a 6.5% move in Nvidia’s share price following the results, an amount equivalent to about $350 billion in market value.
Other earnings reactions: Intuit’s sharp decline
In extended trading, Intuit (NASDAQ:INTU) shares plunged by more than 13% after the financial software company posted quarterly revenue that missed Wall Street estimates and announced plans to reduce its global workforce by roughly 17% as part of a restructuring tied to its artificial intelligence strategy.
Earlier market action and macro drivers
Earlier in the day, easing Treasury yields and retreating crude oil prices helped revive risk appetite following a string of volatile sessions linked to Middle East tensions and inflation worries. The Dow Jones Industrial Average rose 1.3%, the S&P 500 climbed 1.1%, and the NASDAQ Composite jumped 1.6% during the regular session.
The benchmark 10-year Treasury yield moved below 4.6% as investors reassessed rates, while crude prices pulled back on hopes for progress in U.S.-Iran diplomacy.
Walmart results in focus
Market attention now turns to retail giant Walmart, whose quarterly results are due before the opening bell on Thursday. Investors will be watching the report for information on the health of U.S. consumer spending and any indications of tariff-related cost pressures that could affect margins.
Geopolitical updates influencing sentiment
Broader sentiment received a lift after President Donald Trump said, according to a White House pool report, that the administration was in the "final stages" of negotiations with Iran, raising hopes for a reduction in Middle East tensions. Trump later indicated Washington would wait a "few days" for Tehran’s response and warned the situation could escalate quickly if talks failed.
What this means for markets
The combination of mixed corporate reactions - with Nvidia's beat accompanied by a modest after-hours decline and Intuit's significant sell-off - together with lower yields and oil prices, has left market direction dependent on upcoming earnings such as Walmart’s and further developments on the Iran talks. Investors appear focused on whether strong individual company results and AI-driven demand can sustain gains in the face of valuation concerns and evolving geopolitical dynamics.