US pre-open: Futures trade higher following Nvidia Q2 earnings

Wall Street futures were in the green ahead of the bell on Thursday as market participants prepared for a number of data points scheduled for release later in the day.

As of 1245 BST, Dow Jones futures were up 0.56%, while S&P 500 and Nasdaq-100 futures were 0.18% and 0.19% firmer, respectively.

The Dow closed 159.08 points lower on Wednesday as traders looked ahead to key quarterly earnings from AI-darling Nvidia.

Those earnings came after the close, with shares in the chipmaker dropping 5% in extended trading despite beating expectations with its Q2 results. Adjusted earnings per share came to $0.68, beating consensus estimates of $0.64, while revenue of $30.04bn exceeded the anticipated $28.bn.

Scope Markets' Joshua Mahony said: " The after-hours reaction to Nvidia earnings have confounded many, with the company losing over 6% despite beating estimates across the board. Markets have a tendency to focus on the negatives when a company has seen such incredible gains, and this occasion appears to be a case of creating a negative narrative even in the absence of one. For now, the fact that the Q3 outlook is only marginally above estimates does raise some questions over whether the pace of growth will slow from here.

"However, if past performance is anything to go by, Nvidia will likely manage to overcome those estimates just as it did on both the top and bottom line yesterday. For investors, this dip will likely represent a potential opportunity, while the wider markets will also be able to breathe a sigh of relief that the second quarter earnings season is behind us and has largely been a success."

Elsewhere in the corporate space, Best Buy shares rallied in pre-market trading after the retailer hiked FY25 profit guidance on the back of a solid quarterly earnings and revenue beat, while Dollar General shares slumped after the discount retailer's latest batch of quarterly earnings missed Wall Street estimates.

On the macro front, weekly jobless claims data will be out at 1330 BST, as will preliminary readings of Q2 GDP figures, July wholesale inventories and last month's goods trade balance, while July pending home sales will follow at 1500 BST.

Reporting by Iain Gilbert at Sharecast.com