Investing.com — U.S. stock index futures were little moved in Wednesday night trading as the market digested artificial intelligence giant Nvidia's strong earnings report, but an outlook that was significantly lower than previously expected. .
Futures were little moved after quiet trading on Wall Street as expectations for NVIDIA Corporation (NASDAQ:) earnings discouraged big bets. Retail giant Target Corp.'s (NYSE:) earnings fell sharply below expectations as sentiment remained tense due to rising tensions over Russia and Ukraine.
It stabilized at 5,939.0 points, but was flat at 20,751.25 points by 18:35 ET (23:35 GMT). It stabilized at 43,551.0 points.
Guidance underwhelms, NVIDIA falls
After falling as much as 2% immediately after earnings, Nvidia shares pared some of their losses, falling more than 1% to around $144.0 in post-market trading.
Earnings per share increased to $0.81 and revenue to $35.1 billion, beating expectations for EPS of $0.75 and revenue of $33.09 billion.
However, NVIDIA is forecasting fourth-quarter revenue of $37.5 billion (plus or minus 2%). The guidance was slightly above expectations of $37.09 billion, disappointing some traders who had hoped for even more, especially given the significant rise in Nvidia's valuation this year.
The forecast also indicated slower revenue growth compared to previous quarters.
Nvidia, which recently overtook Apple Inc (NASDAQ:) to become the world's most valuable publicly traded company, warned of supply constraints, particularly in its upcoming Blackwell line of next-generation AI chips. However, the company said demand for its advanced AI chips remains strong.
Other major semiconductor manufacturing stocks were little changed in Wednesday night trading as investors digested the mixed outlook for Nvidia, which is seen as a bellwether for AI demand.
TSMC (NYSE:) fell 0.2%, while Broadcom Inc (NASDAQ:) and NVIDIA rival AMD (NASDAQ:) both rose slightly.
Wall Street is muted as follows target slump. More eco-friendly. I was waiting for the signal
Wall Street indexes closed subdued on Wednesday amid caution over Nvidia, but investors also weighed in on Target's nearly 22% drop after the company missed expectations for its September quarter profit. I was also upset.
Target was strong in overnight trading, but its results also raised questions about weak retail spending.
It ended flat at 5,917.11 points, but fell 0.1% to 18,966.08 points. It rose 0.3% to 43,408.47 points.
The focus is on a series of U.S. economic data to be released in the coming days, with weekly statistics expected to be released on Thursday. November data is expected to be released on Friday.
Several Federal Reserve officials are also scheduled to speak in the coming days.
