March S&P 500 E-Mini futures (ESH25) are up +0.70%, and March Nasdaq 100 E-Mini futures (NQH25) are up +0.72% this morning, pointing to a strong open on Wall Street as earnings from AI darling Nvidia reassured investors about the outlook for AI chip demand.
Nvidia (NVDA) rose about +1% in pre-market trading after the chipmaker posted better-than-expected Q4 results and issued largely in-line Q1 revenue guidance. Other megacap technology stocks also advanced in pre-market trading.
Investors also digested the latest tariff announcements from U.S. President Donald Trump. Trump said he would impose tariffs of 25% on the European Union. A White House official stated that the European tariffs could target all exports from the bloc or be limited to specific sectors. Also, the Trump administration is set to impose tariffs on Mexico and Canada, though it remains uncertain whether they will be enacted in March.
Investors now look ahead to fresh U.S. economic data, including the second estimate of fourth-quarter GDP and jobless claims figures, as well as remarks from Federal Reserve officials.
In yesterday’s trading session, Wall Street’s three main equity benchmarks ended mixed. Axon Enterprise (AXON) surged over +15% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the company posted upbeat Q4 results and issued strong FY25 revenue guidance. Also, Super Micro Computer (SMCI) climbed more than +12% after the company filed its “delinquent” financial reports with the U.S. Securities and Exchange Commission just before the deadline. In addition, Intuit (INTU) gained over +12% after the tax and accounting software company reported better-than-expected FQ2 results. On the bearish side, health insurance stocks slumped after the Wall Street Journal reported that Republican Senator Chuck Grassley is advocating for greater oversight of Medicare Advantage plans, with Centene (CNC) sliding more than -7% to lead losers in the S&P 500 and Molina Healthcare (MOH) falling over -6%. Also, AppLovin (APP) plunged more than -12% and was the top percentage loser on the Nasdaq 100 after Fuzzy Panda and Culper Research published short reports against the company.
Economic data released on Wednesday showed that U.S. new home sales slumped -10.5% m/m to 657K in January, weaker than expectations of 679K.
Atlanta Fed President Raphael Bostic stated on Wednesday that the central bank should keep interest rates unchanged, at a level that continues to exert downward pressure on inflation. “We need to stay where we are,” he said.
Meanwhile, U.S. rate futures have priced in a 97.5% probability of no rate change and a 2.5% chance of a 25 basis point rate cut at the next central bank meeting in March.
Today, all eyes are focused on the U.S. Commerce Department’s second estimate of gross domestic product. Economists expect the U.S. economy to expand at an annual rate of 2.3% in the fourth quarter, in line with initial estimates.
Investors will also focus on U.S. Durable Goods Orders and Core Durable Goods Orders data. Economists forecast January Durable Goods Orders at +2.0% m/m and Core Durable Goods Orders at +0.2% m/m, compared to the prior figures of -2.2% m/m and +0.3% m/m, respectively.
U.S. Pending Home Sales data will be reported today. Economists foresee the January figure standing at -0.9% m/m, compared to the previous figure of -5.5% m/m.
U.S. Initial Jobless Claims data will be released today as well. Economists expect this figure to be 222K, compared to last week’s number of 219K.
In addition, market participants will be looking toward a batch of speeches from Fed officials Barkin, Schmid, Barr, Bowman, Hammack, and Harker.
On the earnings front, notable companies like Dell Technologies (DELL), Autodesk (ADSK), Vistra Corp. (VST), Monster Beverage (MNST), and HP Inc. (HPQ) are slated to release their quarterly results today.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.313%, up +1.51%.
The Euro Stoxx 50 Index is down -0.70% this morning after U.S. President Donald Trump threatened to impose 25% tariffs on imports from the European Union. Retail, technology, and automobile stocks were among the biggest laggards on Thursday. Trump said he would impose levies on cars and other goods from the EU, while the region’s pledge to respond “firmly and immediately” heightened fears of an escalating trade war. Investors also digested key economic data from the region. Preliminary data from the National Statistics Institute released on Thursday showed that Spain’s annual inflation rate rose to 3.0% in February, its highest level since last June, from 2.9% in the previous month. Separately, data showed that economic sentiment in the euro area improved in February despite the looming threat of steep U.S. tariffs on European imports. Meanwhile, investors are keeping an eye on a new batch of earnings reports as well. Rolls-Royce Holdings Plc (RR-.LN) surged over +14% after the British engine maker raised its mid-term targets and announced a stock buyback. At the same time, WPP Plc (WPP.LN) plunged more than -17% after the British ad group’s sales forecast disappointed.
Spain’s CPI (preliminary), Eurozone’s Business and Consumer Survey, and Eurozone’s Consumer Confidence data were released today.
The Spanish February CPI stood at +0.4% m/m and +3.0% y/y, compared to expectations of +0.3% m/m and +3.0% y/y.
Eurozone February Business and Consumer Survey came in at 96.3, stronger than expectations of 96.0.
Eurozone February Consumer Confidence arrived at -13.6, in line with expectations.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.23%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.30%.
China’s Shanghai Composite Index reversed early losses and closed slightly higher today. AI-related and chip stocks retreated on Thursday as the tech-driven rally paused following earnings from AI darling Nvidia. Sentiment also remained cautious amid persistent economic uncertainties, the absence of aggressive stimulus, and escalating geopolitical and trade tensions with the U.S. Investors will closely monitor the annual National People’s Congress meeting starting next week for indications of Beijing’s plans to stimulate its economy. Focus will be on the details of fiscal stimulus measures designed to support economic growth. Meanwhile, Bloomberg News reported on Wednesday that China plans to inject at least 400 billion yuan ($55 billion) into some of its largest banks, including Agricultural Bank of China and Bank of Communications, in the coming months, as part of a broader strategy to boost the economy. In other news, the U.S. imposed sanctions on six entities based in Hong Kong and China on Wednesday, accusing them of involvement in an Iranian drone procurement network. In corporate news, Wuhan Keqian Biology climbed over +5% after securing approval from China’s Ministry of Agriculture and Rural Affairs for its mycoplasma bovis live vaccine.
Japan’s Nikkei 225 Stock Index ended higher today, rebounding from a drop in the previous session. Chip stocks mostly rose on Thursday, with Socionext surging more than +12% after it announced a partnership with Google Quantum AI. Automobile stocks also advanced. However, the Nikkei’s gains were limited as chipmaker Advantest dropped following good-but-not-great quarterly results from its client Nvidia. Meanwhile, the yen slightly weakened against the dollar after ending Wednesday’s session little changed. Japan’s top currency official, Atsushi Mimura, signaled on Wednesday that he had no objection to growing market expectations over Bank of Japan interest rate hikes, which this week pushed the yen to a 4-month high. Investors are now awaiting a slew of key economic data from the country on Friday, including industrial production, retail sales, and Tokyo core inflation, which could provide new insights into the BOJ’s future monetary policy. In other corporate news, Nissan Motor gained over +3% after a Bloomberg report indicated that the automaker is contemplating replacing its CEO, Makoto Uchida. At the same time, Seven & I Holdings plunged about -11% after the company announced that its founding Ito family could not secure the financing needed for a $58 billion management buyout, and it would consider a competing offer from Canada’s Alimentation Couche-Tard. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -9.15% to 22.93.
Pre-Market U.S. Stock Movers
Nvidia (NVDA) rose about +1% in pre-market trading after the chipmaker posted better-than-expected Q4 results and issued largely in-line Q1 revenue guidance.
Salesforce (CRM) slid over -4% in pre-market trading after reporting weaker-than-expected Q4 revenue and issuing below-consensus FY26 revenue guidance.
Snowflake (SNOW) climbed more than +11% in pre-market trading after the data warehousing company posted upbeat Q4 results and gave a strong FY26 product revenue forecast.
Nutanix (NTNX) jumped nearly +16% in pre-market trading after posting upbeat FQ2 results.
eBay (EBAY) slumped over -7% in pre-market trading after the online marketplace issued soft Q1 revenue guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - February 27th
RBC (RY), Toronto Dominion Bank (TD), Dell Tech (DELL), Autodesk (ADSK), Canadian Imperial Bank (CM), Vistra Corp. (VST), Monster Beverage (MNST), Fomento Economico Mexicano (FMX), HP Inc (HPQ), Warner Bros Discovery (WBD), Rocket (RKT), NetApp (NTAP), Natera (NTRA), Pembina Pipeline (PBA), Erie Indemnity (ERIE), Edison (EIX), Duolingo (DUOL), Evergy (EVRG), Hormel Foods (HRL), Endeavor Group (EDR), Solventum (SOLV), TechnipFMC (FTI), JM Smucker (SJM), Norwegian Cruise Line (NCLH), Elastic (ESTC), Rocket Lab USA (RKLB), MasTec (MTZ), Talen Energy (TLN), CubeSmart (CUBE), Bath & Body Works (BBWI), EchoStar (SATS), Teleflex (TFX), Donaldson (DCI), Mosaic (MOS), Beacon Roofing (BECN), Starwood Property (STWD), ADT (ADT), Vertex (VERX), Life Time Holdings (LTH), Main Street Capital (MAIN), Cytokinetics (CYTK), Arcadium Lithium (ALTM), Bloom Energy (BE), Macerich (MAC), Installed Building (IBP), Millicom (TIGO), Six Flags Entertainment (FUN), Assured Guaranty (AGO), Arcosa (ACA), Nexstar (NXST), Frontdoor (FTDR), Verra Mobility (VRRM), Acushnet Holdings (GOLF), Global Business Travel (GBTG), Nelnet (NNI), Golar (GLNG), Dlocal (DLO), Sotera Health (SHC), Acadia Healthcare (ACHC), ICU Medical (ICUI), Cogent (CCOI), Dentsply (XRAY), Zai Lab (ZLAB), DoubleVerify Holdings (DV), Payoneer Global (PAYO), Geo (GEO), Scholar Rock (SRRK), Perrigo (PRGO), Tecnoglass (TGLS), SoundHound AI (SOUN), Avepoint (AVPT), Hayward Holdings (HAYW), GMS Inc (GMS), PENN Entertainment (PENN), Crinetics Pharma (CRNX), Alkami Technology (ALKT), Xenon Pharmaceuticals (XENE), Privia Health Group (PRVA), Lifestance Health Group (LFST), Medical Properties (MPW), California Water Service (CWT), Warby Parker (WRBY), Tegna (TGNA), Vericel Corp Ord (VCEL), Playtika (PLTK), TransMedics (TMDX), Tidewater (TDW), Hafnia (HAFN), Novocure Ltd (NVCR), Strategic Education (STRA), LeMaitre Vascular (LMAT), Kymera (KYMR), Melco Resorts & Entertainment (MLCO), Alamo (ALG), Clover Health Investments (CLOV), Ligand (LGND), Sunrun Inc (RUN), Progyny (PGNY), ICF International (ICFI), Jamf (JAMF), Goodrx (GDRX), Morgan Stanley Direct Lending Fund (MSDL), Stagwell (STGW), International Seaways (INSW), Astrana Health (ASTH), NCR (VYX), Diamondrock Hospitality (DRH), Global Net Lease (GNL), Purecycle Technologies Holdings (PCT), Ardagh Metal Packaging (AMBP), Iovance Biotherapeutics (IOVA), Opera (OPRA), Compass Diversified (CODI), Papa John's (PZZA).
