Nasdaq 100 futures sink, Nvidia down 6%
Nvidia disappointed traders' expectations, who were hoping for a stronger beat
The U.S. equity market dipped significantly in extended trading after the highly anticipated quarterly results from artificial intelligence (AI) heavyweight Nvidia.
Nvidia’s shares fell 6% during extended trading. The artificial intelligence chipmaker beat both top and bottom line estimates in its fiscal second quarter and provided a positive sales outlook for the current quarter, however, it disappointed traders’ expectations, who were hoping for a stronger beat.
As a result, Nasdaq 100 futures fell. Futures on the S&P 500 dropped 0.5 percent, and futures on the Nasdaq 100 fell by roughly 1%. The Dow Jones Industrial Average futures, however, rallied by 0.2 percent, at the time of this publication.
The artificial intelligence bellwether Nvidia, which has gained more than 150 percent this year, reported strong quarterly results on Wednesday night and fell short of investors’ high expectations.
Shares of the business software giant Salesforce surged 3% after exceeding both top and bottom line projections for the fiscal second quarter and increasing its forecast for full-year profits. Despite lowering its full-year outlook following the global outage in July, CrowdStrike gained 30.5 percent as well, driven by better-than-expected earnings and revenue.
The U.S. equity markets are emerging from a losing session following a downturn in Nvidia shares ahead of the company’s earnings announcement, which affected the major averages. The S&P 500 fell 0.6 percent, while the tech-heavy Nasdaq Composite lost 1.12 percent. The Dow with 30 stocks fell by roughly 159 points, or 0.039 percent.
These actions demonstrate how important Nvidia is becoming to the larger market. Currently holding about 7% of the S&P 500, the semiconductor company broke through the $3 trillion market valuation barrier this year and momentarily emerged as the most valuable public company globally.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals