Stock futures experienced a modest uptick on Wednesday, as traders aimed to recover from a previous losing session.
Nasdaq 100 futures showed a gain of 0.3%, while S&P 500 futures saw a 0.2% climb. Dow Jones Industrial Average futures registered a marginal increase of 12 points, marking a 0.03% rise.
The momentum of the market had paused on Tuesday, terminating a five-day winning streak for the S&P 500 and Nasdaq Composite. The Dow also closed lower in the wake of the Federal Reserve’s signal, revealed in its latest meeting notes, that monetary policy would maintain a restrictive stance with no indication of imminent interest rate cuts.
Chipmaker Nvidia reported its latest quarterly results Tuesday after the bell. The company posted fiscal third-quarter adjusted earnings and revenue that beat expectations, but warned export restrictions on China would weigh on its fiscal fourth quarter.
The underwhelming response to the quarterly beat has led some investors to ponder whether Nvidia’s stock might be overvalued, particularly considering its impressive over 200% surge this year. This week, Nvidia shares surpassed the $500 mark for the first time, reaching an all-time high, but closed on Tuesday at $499.44, experiencing a 0.9% decline. Stock futures experienced
Trader Guy Adami, expressing his views on CNBC’s “Fast Money” on Tuesday, acknowledged the company’s stellar quarter but raised a critical question: “At what point do you say to yourself, you know what, now the valuation is starting to get a little bit stretched? We understand it can grow into it, but we’re going to start taking profits in the name.”