US stock futures edge higher; Nvidia earnings loom large

Investing.com– U.S. stock index futures rose Wednesday, tracking a largely positive session on Wall Street as technology stocks advanced ahead of earnings from market darling Nvidia.

At 05:45 ET (10:45 GMT), Dow Jones Futures rose 70 points, or 0.2%, S&P 500 Futures gained 5 points, or 0.1%, and Nasdaq 100 Futures climbed 15 points, or 0.1%. 

Positive earnings from retail giant Walmart (NYSE:WMT) helped lift sentiment on Tuesday, with shares of the supermarket operator hitting a record high after it raised its annual guidance. 

Nvidia earnings in spotlight  

Nvidia (NASDAQ:NVDA) is set to release its quarterly earnings after the close, and the results from most valuable listed company in the world will be carefully studied as it is considered as a bellwether for artificial intelligence demand. 

These numbers could well become a gauge for investors’ appetite for tech stocks and sentiment for equities broadly, given its chips are widely seen as the gold standard in the AI-space, and demand for all things to do with artificial intelligence has driven much of this year’s stock market gains.

Technology stocks were mostly upbeat in anticipation of a strong quarterly print from the firm, which has nearly tripled in value this year on an AI-fueled boom.

Earnings are also due from retailers Target (NYSE:TGT) and TJX Companies (NYSE:TJX) ahead of the opening bell.

Among other stocks, Comcast (NASDAQ:CMCSA) rose premarket after The Wall Street Journal reported the firm was close to approving a $7 billion spinoff of its cable TV assets. 

Geopolitical tensions ratchet up

However, gains have been contained Wednesday by an escalation of the geopolitical tensions in eastern Europe after the US embassy in Kyiv was closed following a warning of a possible strike.

This comes a day after Ukraine used US missiles to strike Russian territory. Russian President Vladimir Putin also lowered the threshold for a nuclear strike, and this threatens to drag the West further into the Ukraine war.

Fed speakers in focus

Back in the US, investors were now watching for just what Trump’s policies and cabinet picks will entail for the economy, amid some concerns that his policies will spur a long term pick-up in inflation.

Still, investors largely maintained bets that interest rates will fall in the near-term, with traders pricing in a 60.6% chance for a 25 basis point cut by the Federal Reserve in December, CME Fedwatch showed.

Investors will listen for commentary from Federal Reserve Governors Lisa Cook and Michelle Bowman, as well as Boston Fed President Susan Collins during Wednesday’s session.

Crude rises on Ukraine concerns

Crude prices edged higher Wednesday, helped by concerns about escalating hostilities in the Ukraine war potentially disrupting oil supply from Russia.

By 05:45 ET, the US crude futures (WTI) climbed 0.5% to $69.56 a barrel, while the Brent contract rose 0.3% to $73.56 a barrel.

However, gains have been contained by data from the American Petroleum Institute showing US crude oil stocks rose by 4.75 million barrels in the week ended Nov. 15, far more than the small 100,000 barrel increase expected.

If this figure is confirmed by the official data, due later in the session, it would point to a reduction in demand in the world’s largest energy market as the driving season comes to a close. 

(Ambar Warrick contributed to this article.)