Nasdaq 100 futures fall after chip giant Nvidia provides light-hearted advice
A trader works at the New York Stock Exchange NYSE in New York, the United States, May 18, 2022.
Michael Nagle | Xinhua News Agency | Getty Images
Stock futures were mixed Wednesday night as investors digested a disappointing update from Nvidia, an economic gauge for the tech industry.
Stock futures tied to the Dow Jones Industrial Average rose 21 points, or less than 0.1%. Those of the S&P 500 slid less than 0.1%, while Nasdaq 100 futures fell 0.3%.
The futures move comes after some disappointing quarterly reports from the tech sector. Shares of chipmaker Nvidia fell more than 6% in extended trading after the company provided weaker-than-expected guidance for the second quarter. The company’s chief financial officer said Nvidia would slow down hiring.
Similarly, Snowflake software stock fell nearly 14% after the company’s operating margin forecast came in tighter than expected.
Although first-quarter earnings for the market as a whole were broadly in line with historical trends, there were dramatic setbacks for some major stocks after earnings reports as investors looked for the impact of inflation and slowing economic growth.
“If there’s a reason to sell, they embrace it,” said Jeremy Gonsalves, country director of portfolio management at BNY Mellon Wealth Management.
Shares rose during normal trading hours on Wednesday, with the Nasdaq gaining 1.5% to lead the way. The S&P 500 gained 0.9%, while the Dow gained 0.6%.
All three indices are positive for the week, putting them on track to break long losing streaks. The Dow Jones has fallen for eight straight weeks, while the S&P 500 and Nasdaq have each slid for seven straight weeks.
A bright spot for investors on the earnings front was retail trading with Williams-Sonoma, which jumped 6% in extended trade after beating estimates on both the top and bottom earnings. Macy’s, Dollar Tree and Dollar General are among the companies reporting results before Thursday’s bell.
Also on Thursday, investors will get an updated look at weekly jobless claims and a second reading of first-quarter GDP. Pending home sales data will follow later in the morning.