U.S. equity futures are little changed Wednesday ahead of two major catalysts: July PCE inflation before the open and Nvidia earnings after the close. At 5:26 a.m. ET, Dow futures were up 0.06%, S&P 500 futures were down 0.10% and Nasdaq 100 futures were down 0.26%. Nvidia was up about 0.2% premarket, while weakness in software shares is weighing on the Nasdaq.
Stocks finished higher Tuesday as falling oil prices and Treasury yields supported a technology rebound. The Dow gained 0.30%, the S&P 500 rose 0.32% and the Nasdaq climbed 0.66%. Breadth remained positive at 1.39:1 on the NYSE and 1.79:1 on the Nasdaq. U.S. exchange volume totaled 14.32 billion shares, below the recent 20-session average of 16.4 billion.
Rates provided meaningful relief Tuesday. The 2-year Treasury yield fell 5 basis points to 4.18%, the 10-year dropped 8 basis points to 4.63% and the 30-year declined 7 basis points to 5.16%. Early Wednesday, yields were around 4.20% on the 2-year, 4.64% on the 10-year and 5.18% on the 30-year, leaving the long end slightly higher but well below last week’s peaks.
The DXY closed Tuesday at 98.90 and is near 98.95 this morning. The euro is around $1.1671, sterling $1.3633 and the dollar ¥158.95. Oil remains the bigger macro mover: October WTI plunged 4.92% Tuesday to $80.83 and was near $80.29 early Wednesday as renewed Iran-Oman discussions raised hopes that shipping through the Strait of Hormuz could improve. Gold is consolidating after Tuesday’s advance, with U.S. futures near $4,672, down about 0.5%.
The key economic releases arrive at 8:30 a.m. ET. July headline PCE inflation is expected around 3.6% year over year, while economists surveyed by Reuters expect core PCE to remain at 3.3%. The second estimate of second-quarter GDP, personal income and spending, durable-goods orders and corporate profits are also due. Markets are pricing roughly one additional 25-basis-point Fed increase during 2026, while attention then shifts to Fed Chair Kevin Warsh’s Jackson Hole speech Friday.
Sector Highlights
Technology led at +0.98%, followed by Communication Services +0.46%, Materials +0.35% and Health Care +0.33%. Energy fell 1.70%, Consumer Staples declined 0.87%, Industrials lost 0.30% and Consumer Discretionary slipped 0.27%.
Information Technology
- Nvidia (NVDA +0.2% premarket) reports second-quarter results after the close after gaining 2.2% Tuesday. Analysts expect revenue to nearly double from a year earlier to approximately $92.18 billion, the fastest growth in seven quarters, driven by more than a doubling of data-center sales. Consensus expects Nvidia to guide third-quarter revenue toward $104.2 billion, up roughly 83%, with adjusted gross margins near 75%. Investors are focused on the Vera Rubin ramp, hyperscaler capital spending and Nvidia’s increasingly large role in financing AI infrastructure. Options imply about a 5.4% post-earnings move, equivalent to roughly $280 billion of market value.
- Intuit (INTU -11.7% premarket) is the largest major software decliner after issuing weaker-than-expected fiscal 2027 guidance. Intuit expects revenue of $23.28-$23.51 billion, representing 9%-10% growth versus 14% in fiscal 2026 and below the $23.72 billion consensus. TurboTax growth is expected to slow to 2%-3%, while Mailchimp revenue is projected to be flat to down 1%. Fourth-quarter revenue still rose 13.6% to $4.35 billion, above estimates.
- Adobe (ADBE), ServiceNow (NOW) and Atlassian (TEAM) are also under pressure as Intuit’s outlook renews concern about slower software growth and the impact of AI-driven competition. ServiceNow and Atlassian were both down more than 2% premarket, while Adobe was also lower.
- Zoom Communications (ZM -5% premarket) is falling after its third-quarter profit guidance came in below expectations. Zoom projected adjusted EPS of $1.46-$1.48 versus the $1.50 consensus and revenue of $1.275-$1.280 billion. Second-quarter results were stronger, with revenue of $1.28 billion versus $1.27 billion expected and adjusted EPS of $1.55 versus $1.48. Competition from Microsoft Teams and Google Meet remains a central issue despite Zoom’s expanding AI product suite.
- Salesforce (CRM) and CrowdStrike (CRWD) report after the close alongside Nvidia. Consensus estimates call for Salesforce revenue near $11.3 billion, while investors will focus heavily on Agentforce adoption, AI-related bookings and whether enterprise software spending is being displaced by infrastructure investment. CrowdStrike’s report will provide another read on cybersecurity demand after the stock’s strong year-to-date performance and elevated valuation.
- Advanced Micro Devices (AMD +4.9% Tuesday) was one of Tuesday’s strongest semiconductor performers after Raymond James upgraded the shares. The broader Philadelphia Semiconductor Index gained about 1.4%, reversing part of Monday’s decline ahead of Nvidia’s results.
Communication Services
- Meta Platforms (META) is modestly higher premarket after gaining nearly 2% Tuesday. Meta and a coalition of state attorneys general have reportedly discussed a possible mid-trial settlement of litigation alleging that Facebook and Instagram were deliberately designed to be addictive to younger users. The current federal trial involves claims brought by 29 states; Reuters said it had not independently verified the settlement discussions.
Consumer Discretionary
- Dick’s Sporting Goods (DKS -30.7% Tuesday) suffered its largest decline in years after cutting full-year forecasts and reporting weaker results at Foot Locker. Dick’s reduced its adjusted EPS outlook to $11-$12, lowered projected annual sales to $21.9-$22.2 billion, and now expects Foot Locker comparable sales to be flat to down 2%. Quarterly revenue of $5.59 billion and EPS of $3.53 both missed expectations as weaker sneaker launches, excess inventory and discounting pressured results.
- The Dick’s warning also pressured athletic footwear names. Nike (NKE) fell about 3.3% during Tuesday trading as Dick’s management said legacy footwear styles were failing to resonate and fewer product launches had contributed to Foot Locker’s weakness. Adidas, Puma and On Holding also traded lower.
- Target (TGT -3.8% Tuesday) remains under pressure after the retailer apologized for and withdrew a Halloween costume that drew criticism for evoking blackface. The episode has renewed attention on brand-management issues just as Target has been attempting to improve sales trends and regain customer traffic.
- Abercrombie & Fitch (ANF), Bath & Body Works (BBWI), Kohl’s (KSS) and Williams-Sonoma (WSM) are scheduled to report results Wednesday morning, giving investors another broad read on discretionary spending after Tuesday’s weak consumer-confidence report and Dick’s sharp forecast reduction.
Health Care
- Moderna (MRNA +14.0% Tuesday) extended its volatile rally after Barclays raised its price target following positive late-stage melanoma data from Moderna and Merck (MRK). The companies’ personalized mRNA cancer vaccine, combined with Keytruda, significantly reduced melanoma recurrence and spread in an interim analysis. Investor focus is shifting toward potential regulatory approval and whether the technology can succeed across additional tumor types.
Consumer Staples
- J.M. Smucker (SJM) reports before the open. The company enters the quarter with expectations for fiscal 2027 adjusted EPS of $9.75-$10.25, helped by easing green-coffee costs and demand for products including Uncrustables, Folgers and Hostess. Smucker has previously projected a roughly 300-basis-point improvement in adjusted gross margin despite expecting annual sales to decline 3%-4%.
