Nvidia's earnings report gains retraced, US stock futures decline; Iran negotiations become the focus

Investing.com - On Wednesday evening, U.S. stock index futures edged lower, despite tech giant NVIDIA reporting strong quarterly earnings, though most of its after-hours gains were given back.

Ahead of a new round of nuclear talks between the U.S. and Iran in Geneva on Thursday, geopolitical risks have returned to the market’s radar.

As of 8:23 p.m. Eastern Time (1:23 a.m. Beijing time), the S&P 500 futures fell nearly 0.2% to 6,947.0. Nasdaq 100 futures declined nearly 0.4% to 25,291.0, and Dow futures dropped 0.2% to 49,444.0.

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Before the futures declined, Wall Street had a positive trading day, with tech stocks rising ahead of NVIDIA’s earnings report. Concerns about AI’s impact on the software industry also eased, providing support.

The market largely ignored President Donald Trump’s threats to impose more trade tariffs, after the Supreme Court last week ruled most of his tariffs illegal.

The S&P 500 and Dow Jones Industrial Average rose 0.8% and 0.6%, respectively, while the Nasdaq Composite jumped 1.3%.

NVIDIA Reports Strong AI-Driven Earnings, Stock Fluctuates

NVIDIA Corporation (NASDAQ: NVDA) stock dipped slightly in after-hours trading, after initially rising up to 4% following the quarterly earnings release, then turning lower. The company, the world’s most valuable, hit a nearly four-month high on Wednesday.

The company’s revenue and profit for the three months ending in January exceeded expectations, and it forecasted current-quarter revenue to be stronger than expected, continuing to benefit from huge demand for its advanced chips driven by AI.

Although NVIDIA’s largest customer pledged to increase data center spending, inventory levels rose compared to the previous quarter. CFO Colette Kress said the company has enough inventory to meet at least a year’s demand.

Deepwater Management managing partner Gene Muster posted on X (formerly Twitter), saying, “When she mentioned this, the stock reacted neutrally to negatively.”

“When you talk about supply and demand balance, it indeed eliminates this hopeful, expectant dynamic… being in balance is psychologically a bit of a hurdle.”

The chipmaker’s sales in China remain uncertain, with few specific clues about its prospects in the country.

Nonetheless, NVIDIA’s earnings indicate the company will continue to benefit from strong AI-driven demand over the coming quarters — a trend expected to support the broader tech sector.

Salesforce Slides on Disappointing 2027 Guidance

Salesforce Inc. (NYSE: CRM) stock fell 4.6% in after-hours trading, after the enterprise software giant issued a forecast for 2027 revenue that was below expectations.

Salesforce projected annual revenue between $45.8 billion and $46.2 billion, with the midpoint slightly below the Reuters/LSEG estimate of $46.06 billion.

Although the company posted strong quarterly earnings, its muted outlook suggests enterprise software demand remains under pressure from economic uncertainty and disruptions in the AI industry.

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