Futures drift lower as Nvidia results, Fed minutes loom
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.14%, S&P 0.10%, Nasdaq 0.02%
Nov 21 (Reuters) -U.S. stock index futures inched lower on Tuesday as investors stayed on the sidelines ahead of artificial intelligence chip leader Nvidia's quarterly report and the release of the Federal Reserve's meeting minutes.
A technology-fueled rally led the S&P 500 .SPX and the Nasdaq .IXIC to register their highest closing level in over three months on Monday, as investors continued to bet that the Fed was at the end of its rate hiking cycle.
Big Tech stocks, which have powered most of the S&P 500's gains this year, now face an important test with Nvidia due to report third-quarter results after markets close.
The chip designer is expected to deliver yet another blockbuster revenue forecast but the real focus will be on the impact of widening U.S. curbs on sales of its high-end chips to China.
"The market is expecting a large pick-up in revenue growth in Q3, with expectations of an even bigger number for Q4," said Stuart Cole, head macro economist at Equiti Capital.
However, given potential headwinds such as a slowdown in China, the company's 2024 guidance could be key for the stock's performance going forward, Cole added.
Shares of Nvidia edged up 0.2% in premarket trading while other megacap stocks were mixed.
Before the quarterly report, minutes of the Fed's November meeting are likely to offer more cues on the monetary policy path after evidence of slowing inflation boosted expectations that U.S. interest rates had peaked. The minutes are due to be released at 1400 ET (1900 GMT).
Traders have fully priced in the probability that the Fed will hold interest rates steady in December, with 28% betting on the likelihood that the central bank will deliver a rate cut as soon as March, according to the CME Group's Fedwatch tool.
This week is light in terms of economic data, with a report on existing home sales due later in the day. Trading volumes are also expected to be thin ahead of the Thanksgiving holiday.
Retailers Lowe's LOW.N and Kohl's KSS.N are among companies reporting quarterly results before the opening bell.
At 5:13 a.m. ET, Dow e-minis 1YMcv1 were down 51 points, or 0.14%, S&P 500 e-minis EScv1 were down 4.75 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were down 4 points, or 0.02%.
Among other stocks, U.S.-listed shares of Baidu BIDU.O gained 2% as China's biggest internet search engine provider's third-quarter revenue beat estimates.
Reporting by Amruta Khandekar; additional reporting by Ankika Biswas; Editing by Maju Samuel
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.