U.S. equity futures moved higher in early Thursday trading, supported by solid earnings from Nvidia but tamed by uncertainties tied to tariff threats from the Trump administration that continue to linger over global markets.
Nvidia (NVDA) , the market’s third-biggest stock, posted stronger-than-expected fourth quarter earnings after the close last night, while forecasting solid revenue gains over the coming months, as it continues to capitalize on the surge in AI investments from tech companies around the world.
Its outlook, however, was only modestly firmer than analysts’ estimates, while profit margins and expected to narrow, suggesting Nvidia’s day of smashing Wall Street’s forecasts may now be behind it.
“The powerful new Blackwell chips are more expensive to produce, and that’s putting pressure on Nvidia’s profit margins,” said Kate Leaman, chief market analyst at Dublin-based AvaTrade. “While revenue is soaring, analysts are keeping a close eye on whether this margin squeeze could impact the company’s long-term profitability.”
Shares in the group were marked 1.4% higher in premarket trading, but remain in negative territory for the year, while its Magnificent 7 peers notched modest premarket advances.
Nvidia posted solid fourth quarter earnings, with a stronger-than-expected outlook, but investors are starting to see narrowing profit growth from the AI chipmaker.
Markets are likely to shift focus Thursday to a series of data releases over the coming days, including a second look at fourth quarter GDP growth, weekly jobless claims and Friday’s January PCE inflation report, amid signals of a slowdown in the world’s biggest economy.
The figures will arrive amid renewed concerns over the impact that tariffs, federal government job cuts and immigration policies will have on growth prospects.
President Trump reiterated his vow to impose 25% levies on goods from Canada and Mexico during his first cabinet meeting yesterday, but creating some confusion over when they’ll be formally put in place. He also repeated his threat to place so-called ‘reciprocal’ duties on goods arriving from Europe, as well as other major economies, later this spring.
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“There is growing confusion regarding the timing and extent of the tariffs the US administration will impose,” said George Vessey, lead FX & macro strategist at Convera. “Trump stated that the 25% tariffs on Mexico and Canada would take effect on April 2 instead of the previously mentioned March 4 date.”
“It remains unclear whether the president was granting these countries additional time or was confused about a different program,” he added. “The series of contradictions has fueled investor skepticism about Trump’s policy agenda.”
The U.S. dollar index was marked 0.2% higher against a basket of its global peers at 106.631 in overnight trading following Trump’s cabinet meeting, while 10-year Treasury note yields were steady at 4.305% heading into the GDP and jobs data release at 8:30 am Eastern time.
On Wall Street, stocks are set for a solid open to follow-up last night’s modest gains, with the S&P 500 priced for a 36 point advance and the Dow Jones Industrial Average called 130 points higher.
The Nasdaq, meanwhile, is priced for a 147 point advance thanks largely to Nvidia and the broader Magnificent 7 gains.
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In overseas markets, Europe’s Stoxx 600 fell 0.39% from yesterday’s all-time highs amid the renewed tariff threats from the Trump administration, while a weaker pound helped the export-focused FTSE 100 rise 0.1% in mid-day London trading.
Overnight in Asia, Japan’s Nikkei 225 rose 0.3% from the four-month low it touched earlier this week, while the regional MSCI ex-Japan benchmark gained 0.73% into the close of trading.
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