U.S. stock futures marginally higher ahead of Nvidia earnings

 U.S. stock index futures edged marginally higher Wednesday, with investors wary ahead of the release of key earnings from AI bellwether Nvidia.

At 06:00 ET (10:00 GMT), Dow Jones Futures rose 27 points, or 0.1%, S&P 500 Futures gained 5 points, or 0.1%, and Nasdaq 100 Futures climbed 6 points, or 0.1%.

The major indices closed higher Tuesday amid a degree of confidence ahead of Nvidia’s results, with the chipmaker seen as a bellwether in the broader market and a major indicator of AI development.

This week marks the last of August trading, which is historically a rough month for stocks. However, the three main U.S. indexes are on course for gains this month, with the broad-based S&P 500 up 2% this month, the 30-stock Dow Jones Industrial Average gaining 2.9% and the NASDAQ Composite up 2%.

Nvidia earnings in spotlight 

Nvidia, a key barometer of the artificial intelligence (AI) boom, is set to report its fiscal second quarter results after the market close.

After driving markets higher for much of the year, technology stocks have cooled this month as investor enthusiasm cooled. Nvidia’s results are likely to set the tone for near-term risk appetite as they will offer evidence as to whether the sky-high valuation for AI darlings is justified.

Overall, the AI chipmaker is set to report a 53% rise in second-quarter revenue to $46 billion, according to LSEG data, but this may not be enough to keep investors happy given this would still be a far cry from the triple-digit growth it witnessed for many recent quarters.

Investors will also be interested in the company’s outlook, given the fate of Nvidia’s China business hangs on where the world’s two largest economies land on tariff talks and chip trade curbs.

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.

Canada Goose to go private? 

Aside from Nvidia, investors will also digest results from the likes of MongoDB (NASDAQ:MDB), PVH (NYSE:PVH), Okta (NASDAQ:OKTA) and Kohl’s (NYSE:KSS), after these companies released results after the close on Tuesday.

Canada Goose (NYSE:GOOS) will also be in the spotlight 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

Crude slips slightly 

Oil prices steadied after hefty losses in the prior session as traders weighed hefty new U.S. tariffs on India, the world’s third-biggest crude consumer.

At 06:00 ET, Brent futures dropped 0.1% to $66.61 a barrel, and U.S. West Texas Intermediate crude futures fell 0.1% to $63.19 a barrel.

Both contracts fell over 2% on Tuesday after beginning the week on a two-week high.

Ambar Warrick contributed to this article