U.S. stock futures showed modest gains on Wednesday as traders positioned for two key events: Nvidia’s fiscal second-quarter earnings release after the bell and the Commerce Department’s July personal consumption expenditures (PCE) inflation report due before the open.
Dow Jones Industrial Average futures were up 42 points, or 0.1%, while S&P 500 futures remained largely flat. Nasdaq 100 futures slipped 25 points, or 0.1%, reflecting cautious sentiment ahead of Nvidia’s results. The chipmaker’s stock closed Tuesday at $213.05, up 2.19%, after rising 4.57% during the session.
Nvidia’s revenue is projected to nearly double year-over-year to $92.18 billion, according to LSEG data cited by Reuters. The surge would mark the fastest growth rate in seven quarters, driven primarily by demand for data center products, including its current-generation Blackwell chips and upcoming Vera Rubin processors. The earnings report follows a 2.19% gain in Nvidia’s shares on Tuesday, bringing its after-hours price to $213.13.
Attention will also focus on the July PCE inflation data, the Federal Reserve’s preferred price gauge. The core PCE price index is expected to rise 0.2% month-over-month, up from 0.1% in June, while the year-over-year rate is forecast to hold steady at 3.3%. Boston Fed President Susan Collins, a non-voting FOMC member, suggested in an essay that tighter monetary policy may soon be warranted unless disinflation continues. Deutsche Bank analysts noted her remarks in a recent client note.
Oil prices declined, with Brent crude futures falling below $90 per barrel, down 2.19% to $85.36. The drop coincides with reduced tanker traffic through the Strait of Hormuz, where preliminary data from Kpler showed only five commodity ships transiting the waterway, well below the 10-day moving average of 15. Before the late-February escalation in regional tensions, roughly one-fifth of global oil and LNG exports passed through the strait.
Diplomatic developments have further complicated the outlook. Iran and Oman agreed on a temporary alternative shipping route following talks in Tehran, though a top Iranian official stated the strait would remain closed until the U.S. fulfills commitments from a June ceasefire framework. Reports from Russia’s RIA Novosti, citing Iranian and Pakistani sources, suggested a new U.S.-Iran ceasefire accord may be announced in the coming days. Analytics firm Vital Knowledge flagged the evolving geopolitical risks.
In trade policy, Canada plans to impose up to 50% tariffs on approximately 700 U.S. products worth $20 billion annually, effective September 8. The move follows the U.S. implementation of 50% duties on a range of Canadian exports over the weekend after negotiations failed. The tit-for-tat measures escalate trade tensions between the two nations.
