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U.S. equity futures moved lower Thursday, while the dollar inched towards its recent one-year high and Treasury bonds rallied, as investors pared risky bets following a less-than-stellar revenue outlook for tech giant Nvidia and ongoing concern tied to Russia’s war on Ukraine.Â
Stocks ended little-changed on Wednesday, with the S&P 500 scraping out a modest gain and the tech-focused Nasdaq slipping 0.11%, as markets awaited the third quarter update from Nvidia and digested some hawkish comments on interest rates that clipped bets on a December Federal Reserve rate hike.
Richmond Fed President Tom Barkin echoed that concern in an interview with Britain’s Financial Times, telling the paper that the U.S. is “somewhat more vulnerable to cost shocks on the inflation side, whether they be wages or otherwise, than we might have been five years ago.”
The CME Group’s FedWatch now pegs the odds of a December rate cut at around 59%, with just two more reductions priced in over the second half of next year.
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Treasury yields, however, were lower in overnight trading as investors retreated to safe-haven assets amid reports from Ukraine that Russia has used an intercontinental ballistic missile for the first time in the two-year conflict.
Benchmark 10-year notes were last marked 3 basis points lower at 4.388% while 2-year paper eased to 4.293%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.02% higher at 106.701.
On Wall Street, Nvidia’s (NVDA)  near-term outlook, which included the slowest pace of revenue growth in seven quarters, clouded an otherwise impressive third quarter earnings report that included a 94% year-on-year surge in sales and net income of $19.3 billion.
“I think what matters [for Nvidia shares] is this: ‘what’s demand going to look like in 2026?’,” said Deepwater Asset Management’s Gene Munster. “This is a boom-or-bust business and they’re telling us they see incredible demand for Blackwell, and higher levels of interest than they saw just three months ago.”
Related: Nvidia stock slides as outlook clouds massive Q3 earnings surge
Shares in the group, which comprise around 7.5% of the S&P 500 and 9% of the Nasdaq, were marked 2.95% lower in premarket trading at $141.58 each.Â
That slide is weighing on the broader indices, with futures contracts tied to the S&P 500 suggesting a 17 point opening bell decline and those linked to the Nasdaq priced for a 76 point pullback.
The Dow Jones Industrial Average, meanwhile, is called 65 points lower.Â
Other stocks on the move include Snowflake (SNOW) , which is up more than 21% in premarket trading to $156.60 each after the data analytics group boosted its full-year profit forecast and unveiled a new cloud partnership with AI-focused Anthropic.
Palo Alto Networks (PANW) , meanwhile, fell 4.7% after the cybersecurity group issued a muted outlook for its fiscal second quarter and unveiled a 2-for-1 stock split.
More Wall Street Analysts:
- Walmart analysts reset stock price targets ahead of Black Friday
- Analysts revamp Cisco stock price targets after earnings
- Analysts revisit Applied Materials stock price targets after Q4 earnings
In overseas markets, Europe’s Stoxx 600 was marked 0.4% lower in mid-day Frankfurt trading, while Britain’s FTSE 100 edged 0.15% higher in London thanks in part to solid gains for energy and resource stocks.
Overnight in Asia, Japan’s Nikkei 225 ended 0.8% lower in Tokyo while the region-wide MSCI ex-Japan benchmark slipped 0.56% into the close of trading.
Related: Veteran fund manager sees world of pain coming for stocks
