Stocks Muted Before the Open as Investors Digest Nvidia’s Stumble, U.S. GDP Data in Focus

September S&P 500 E-Mini futures (ESU25) are up +0.03%, and September Nasdaq 100 E-Mini futures (NQU25) are down -0.06% this morning, pointing to a muted open on Wall Street as investors digest Nvidia’s underwhelming earnings report.

Nvidia (NVDA) fell nearly -2% in pre-market trading after the chipmaker reported slightly weaker-than-expected Q2 revenue from the important data center segment and gave Q3 revenue guidance that, while still strong in absolute terms, fell short of lofty expectations. Adding to investors’ disappointment, the company said its sales forecast does not factor in shipments of its H20 chip to China.

Investor focus now turns to fresh U.S. economic data, including the second estimate of second-quarter GDP and jobless claims figures, earnings reports from several major companies, as well as remarks from a Federal Reserve official.

In yesterday’s trading session, Wall Street’s three main equity benchmarks ended in the green. MongoDB (MDB) soared over +37% after the database software company posted upbeat Q2 results and raised its full-year guidance. Also, Kohl’s (KSS) surged +24% after the retailer reported better-than-expected Q2 adjusted EPS and lifted its full-year adjusted EPS guidance. In addition, nCino (NCNO) climbed over +13% after the company posted stronger-than-expected Q2 results and boosted its annual guidance. On the bearish side, Paramount Skydance (PSKY) slumped more than -6% and was the top percentage loser on the S&P 500 after Morgan Stanley lowered its price target on the stock to $10 from $12.

New York Fed President John Williams said on Wednesday that the September FOMC meeting would be a “live” one. Williams said the current level of rates is “modestly restrictive,” meaning the Fed could “reduce interest rates and still be somewhat restrictive going forward, but again, we’re going to have to figure out exactly what’s happening in the economy.”

Meanwhile, U.S. rate futures have priced in an 87.2% chance of a 25 basis point rate cut and a 12.8% chance of no rate change at September’s monetary policy meeting.

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 3.1% in the second quarter, slightly above the initial estimate of 3.0%.

Investors will also focus on U.S. Initial Jobless Claims data. Economists expect this figure to be 231K, compared to last week’s number of 235K.

U.S. Pending Home Sales data will be released today as well. Economists forecast the July figure at -0.4% m/m, compared to the previous figure of -0.8% m/m.

In addition, market participants will be looking toward a speech from Fed Governor Christopher Waller.

On the earnings front, notable companies like Dell Technologies (DELL), Marvell Technology (MRVL), Autodesk (ADSK), Affirm Holdings (AFRM), and Dollar General (DG) 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 4.226%, down -0.26%.

The Euro Stoxx 50 Index is up +0.28% this morning, continuing to recover losses from earlier in the week that were driven by a political crisis in France and concerns over the Fed’s independence. Automobile and mining stocks outperformed on Thursday. Chip stocks were mixed as investors largely shrugged off Nvidia’s underwhelming earnings report. Strategists at Goldman Sachs, Citigroup, and JPMorgan noted that markets have already priced in the possibility of another government collapse in France, and they do not expect it to derail the European stock rally. Meanwhile, European Central Bank Governing Council member Olli Rehn said on Thursday that U.S. President Donald Trump’s escalating attacks on the Fed could have significant global spillover effects on financial markets and the real economy. Turning to Eurozone inflation, Rehn said the outlook for the coming months remains uncertain, adding that he and his colleagues “are closely monitoring” developments and “remain alert to act if the need arises.” Investors are awaiting an account of the ECB’s July policy meeting due later in the session that will likely underscore the increasingly difficult path to another rate cut. On the economic front, surveys of households and businesses indicated that confidence in the Eurozone’s economic outlook weakened in August, with little expectation of a significant rebound ahead. Separately, ECB data showed that Eurozone bank lending growth accelerated to a new 2-year high in July, driven by lower interest rates and a gradual economic recovery. In corporate news, Pernod Ricard SA (RI.P.DX) climbed over +7% after the spirits giant posted better-than-feared annual results and projected improving trends from the second half of 2026.

Eurozone’s Business and Consumer Survey and Eurozone’s Consumer Confidence data were released today.

Eurozone’s August Business and Consumer Survey came in at 95.2, weaker than expectations of 96.0.

Eurozone’s August Consumer Confidence stood at -15.5, in line with expectations.

Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +1.14%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.73%.

China’s Shanghai Composite Index closed sharply higher today, recouping most of the prior session’s losses as the recent bull run fueled by abundant liquidity continued. Chip stocks jumped on Thursday after the Financial Times reported that local producers plan to triple the country’s total AI chip output next year. One fabrication plant dedicated to producing Huawei’s AI processors is set to begin production as early as the end of this year, while two additional plants are scheduled to launch next year, according to the report. Combined capacity could surpass the current output of comparable lines at Semiconductor Manufacturing International Corporation (SMIC). The report added that SMIC also intends to double its capacity next year for making chips at 7 nanometres. Earlier this week, China’s State Council unveiled an “AI Plus” initiative to promote the application of AI across areas such as technology and consumption. China plans to raise the AI penetration rate to over 70% by 2027 and 90% by 2030. Meanwhile, GF Fund Management lifted investment restrictions on a tech-focused feeder fund just a day after imposing them, further boosting sentiment. In corporate news, Trip.com Group surged over +7% in Hong Kong after the online travel giant posted strong Q2 results and announced a new share repurchase program of up to $5 billion. At the same time, Meituan sank more than -12% in Hong Kong after the food delivery giant reported a 97% plunge in Q2 net income and warned of major losses this quarter.

Japan’s Nikkei 225 Stock Index closed higher today, recouping part of this week’s losses. Metal and energy stocks led the gains on Thursday. Chip stocks also advanced, brushing aside their initial drag from Nvidia’s revenue guidance falling short of lofty expectations. The benchmark index’s gains accelerated in the afternoon session after Mitsubishi Corp. said Warren Buffett’s Berkshire Hathaway raised its stake in the trading house to 10.23% from 9.74%. Meanwhile, Bank of Japan Policy Board member Junko Nakagawa reiterated on Thursday the central bank’s commitment to pursuing further interest rate hikes, while highlighting higher U.S. tariffs as a major concern. Nakagawa stressed the importance of the upcoming Tankan corporate survey results in assessing the impact of trade negotiations among major economies on Japanese businesses. Japan’s top trade negotiator, Ryosei Akazawa, scrapped a planned visit to the U.S. at the last minute on Thursday, further postponing talks aimed at finalizing a $550 billion investment package proposed by Tokyo in exchange for tariff relief. In other news, foreign investors turned net sellers of Japanese stocks in the week to August 20th. Foreigners offloaded a net 496.8 billion yen ($3.37 billion) worth of Japanese stocks last week, marking their first weekly net sales since June 21st, according to data from Japan’s Ministry of Finance. Investor attention now turns to a series of Japan’s economic data releases due on Friday, including Tokyo core CPI, industrial production, and retail sales. Any signs of firming inflation or economic strength could heighten expectations that the BOJ will hike rates as early as October. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -3.02% to 22.78.

Pre-Market U.S. Stock Movers

Nvidia (NVDA) fell nearly -2% in pre-market trading after the chipmaker reported slightly weaker-than-expected Q2 revenue from the important data center segment and gave Q3 revenue guidance that, while still strong in absolute terms, fell short of lofty expectations. Adding to investors’ disappointment, the company said its sales forecast does not factor in shipments of its H20 chip to China.

CrowdStrike Holdings (CRWD) slid over -3% in pre-market trading after the cybersecurity company issued below-consensus Q3 revenue guidance.

Cooper Companies (COO) tumbled more than -14% in pre-market trading after the medical devices maker cut its full-year revenue guidance.

Snowflake (SNOW) surged more than +13% in pre-market trading after the provider of cloud-based data-warehouse software posted upbeat Q2 results and raised its full-year product revenue guidance.

Pure Storage (PSTG) climbed over +13% in pre-market trading after the company reported stronger-than-expected Q2 results and boosted its annual guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - August 28th

Toronto Dominion Bank (TD), Dell Tech (DELL), Canadian Imperial Bank (CM), Marvell (MRVL), Autodesk (ADSK), Affirm Holdings (AFRM), Dollar General (DG), Williams-Sonoma (WSM), Ulta Beauty (ULTA), Dick’s Sporting Goods (DKS), Burlington Stores (BURL), Hormel Foods (HRL), Best Buy (BBY), Brown Forman (BFa), Elastic (ESTC), Gap (GAP), Ollie’s Bargain Outlet (OLLI), Bath & Body Works (BBWI), Accelerant Holdings (ARX), SentinelOne (S), IREN Ltd (IREN), PureTech Health (PRTC), Ambarella (AMBA), Victoria’s Secret Co (VSCO), Lucky Strike Entertainment (LUCK), Petco Health and Wellness (WOOF).