Traders work on the floor of the New York Stock Exchange during morning trading on August 26, 2025 in New York City.
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Stock futures were little changed Thursday as investors weighed Nvidia’s latest quarterly results.
S&P 500 futures traded just above the flatline, while Nasdaq-100 futures fell marginally. Futures tied to the Dow Jones Industrial Average were up 86 points, or 0.2%.
Nvidia – which makes up about 8% of the S&P 500, per FactSet – fell nearly 2%, even after its second-quarter results beat Wall Street’s estimates. Chip stocks also came under a bit of pressure following the artificial intelligence bellwether’s results, as AMD and Taiwan Semiconductor each fell in sympathy.
Heading into the print, investor expectations were elevated as the S&P 500 closed at a record high. Even though Nvidia’s results surpassed expectations, investors were setting the bar even higher.
“The negative stock reaction feels like a bit of an incorrect knee-jerk reaction,” said David Wagner, head of equity at Aptus Capital Advisors, adding that investors should be “buying the pullback.”
“The company is still growing over 50% on their guidance at a $50B quarterly revenue run rate – that’s remarkable, even for the current valuation,” he said.
Notably, Nvidia said there were no sales of H20 chips to China during the quarter, nor did the company assume any shipments in its guidance. The White House said earlier this month that it’s still working out the “legality” of its 15% export tax on Nvidia and AMD.
“That’s important because that’s just an unknown. Do they actually get that license for the H20 and start making sales?” Art Hogan, chief market strategist at B. Riley Wealth Management, told CNBC. “Not putting anything into the Q3 guide means that there’s more upside potential if, in fact, they get the license for the H20 into China.”
To be sure, Hogan also believes the AI boom is still in “the very early innings.” He said investors think “Nvidia is still the king of the artificial intelligence revolution” after CEO Jensen Huang “does another masterful job of explaining what we should be looking for moving forward.”
The market is coming off a winning session Wednesday. The market is on pace to score a monthly gain as well following Wednesday’s moves, as the S&P 500 and the Nasdaq are each up more than 2%, while the 30-stock Dow is up more than 3% in the period.
Investors have been shrugging off threats to the Federal Reserve’s independence from the Trump administration after President Donald Trump told Fed Board Governor Lisa Cook that she’s fired earlier this week, a move that Cook plans to legally challenge.
On Wednesday, Trump’s top economic adviser, Kevin Hassett, said that Cook should go on leave from the central bank even with her plans to file a lawsuit.
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