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Nvidia forecast overall revenue above Wall Street targets, but
the company warned U.S. export curbs could lead to a steep drop
in fourth-quarter sales in China.
Shares of Nvidia had initially slipped in premarket trading, but
reversed course to climb 1.1%.
"A very high bar has been set for Nvidia and because of concerns
about trade tensions, there is some element of worry creeping
back," said Susannah Streeter, head of money and markets at
Hargreaves Lansdown, while highlighting that the company posted
strong quarterly results.
Investors also had an eye on the latest turn of events at OpenAI
after the ChatGPT maker reached an agreement for Sam Altman to
return as CEO days after his ouster. Shares of the startup's
financial backer Microsoft edged 0.6% higher.
Big Tech stocks led a rebound in U.S. equities in November, with
the S&P 500 coming within a whisker of its highest level this
year, as signs of easing inflation boosted bets that the Fed was
done with its interest rate hikes.
The benchmark index and the tech-heavy Nasdaq, however, snapped
a five-session winning streak on Tuesday after minutes from the
latest Fed meeting showed officials agreed to take a cautious
approach to raising U.S. interest rates going forward.
The central bank's guarded stance is weighing on enthusiasm
about rate cuts coming later, Streeter said.
Light trading volumes also impacted market moves ahead of the
Thanksgiving holiday on Thursday.
Later in the day, investors will parse a number of economic
reports for more clues on the strength of the U.S. economy and
the outlook for interest rates.
Durable goods data for October and weekly jobless claims numbers
are scheduled to be released at 8:30 am ET followed by a final
reading of the University of Michigan's consumer sentiment index
for November.
At 6:57 a.m. ET, Dow e-minis were down 5 points, or 0.01%, S&P
500 e-minis were up 6 points, or 0.13%, and Nasdaq 100 e-minis
were up 37.25 points, or 0.23%.
Among other major movers, Deere & Co shed 7.5% before the bell
after the farm equipment maker forecast 2024 profit below
analysts' estimates as high borrowing costs and squeezed budgets
dented demand. Peer Caterpillar also fell 2.2%.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by
Maju Samuel)
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