U.S. stock futures edge higher; weekly jobless data to add to Fed cut hopes
Investing.com -- The S&P 500 notched a fresh closing record Wednesday, with tech leading the gains.
At 4.00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average rose 147 points, or 0.3%, while the S&P 500 index added 0.2% to a closing record of 6,481.40, and the NASDAQ Composite climbed 0.2%.
Nvidia Q2 earnings beat, but China uncertainty weighs
Nvidia reported Wednesday better-than-expected second-quarter results, but data center revenue fell just short of estimates as U.S. restrictions on H20 chip sales to China weighed.
The chipmaker delivered upbeat guidance for the current quarter, but signaled uncertainty about chip sales to China.
"The company has not assumed any H20 shipments to China in the outlook," Nvidia said in a statement Wednesday.
Fed independence in focus
Investors will also keep an eye on developments surrounding U.S. President Donald Trump’s attempt to remove of Fed Governor Lisa Cook from her role in the U.S. central bank, after alleging she engaged in mortgage fraud.
Cook has denied the allegations and said she will take Trump to court over keeping her role, likely setting the stage for a protracted legal battle. Cook is tenured to serve on the Fed board until 2038.
The move comes amid increasing calls from Trump and his allies that the Fed cut interest rates immediately– a move the central bank has declined amid caution over inflation and the labor market.
Trump’s attempts to shake up the Fed sparked concerns over the independence of the Fed and the long-term credibility of the U.S. economy. The Fed has traditionally operated free from political interference, with most past presidents maintaining a largely hands off approach to the central bank.
Corporate earnings continue
Aside from Nvidia, there are more earnings to digest.
Kohl’s (NYSE:KSS) stock soared after the department store chain raised its annual profit forecast as it reined in costs amid efforts to bring back customers during the key holiday shopping season.
MongoDB (NASDAQ:MDB) stock also climbed strongly after the developer data platform beat Wall Street expectations for second-quarter results and issued third-quarter and full-year guidance above analyst estimates as well.
Okta (NASDAQ:OKTA) stock rose after the identity security provider beat earnings estimates and lifted its full-year revenue outlook.
PVH (NYSE:PVH) stock gained after the fashion holding company boosted its forecast for the current year following stronger sales in the second quarter on celebrity partnerships and entertainment deals.
Williams-Sonoma (F:WSM) stock gained after the home furnishings retailer reported second-quarter earnings that exceeded analyst expectations.
Canada Goose (NYSE:GOOS)} } stock surged after CNBC reported that controlling shareholder Bain Capital has received bids to take the luxury goods maker private at a valuation of about $1.4 billion.
MongoDB (NASDAQ:MDB), meanwhile, surged over 30% after lifting its full-year guidance as the database platform provider continues to ride AI-led demand.
Energy stocks rise as crude steadies after losses
Energy stocks including Huntington Ingalls Industries Inc (NYSE:HII), Johnson Controls International PLC (NYSE:JCI), Carrier Global Corp (NYSE:CARR) up more than 1% led the broader market move higher as oil prices steadied following data showing a much larger drop in U.S. weekly crude stocks.
Crude inventories fell by 2.4 million barrels in the week ended Aug. 22, the EIA said, a much steeper fall than the 1.7-million-barrel draw analysts had expected.
Ambar Warrick contributed to this article