Traders on the New York Stock Exchange (NYSE) faced a dip in stock futures Wednesday night as the market reacted to recent earnings reports from prominent companies Nvidia and Salesforce. Futures tied to the Dow Jones Industrial Average fell by 114 points, or 0.2%. Similarly, S&P 500 futures also declined by 0.2%, while the Nasdaq 100 futures experienced a more significant drop of about 0.4%.
In after-hours trading, Nvidia saw a slight uptick in its share price following an impressive fourth-quarter earnings and revenue report. However, Salesforce encountered a setback, plummeting over 4% after unveiling disappointing revenue projections for fiscal 2027. The company has faced increased scrutiny amid fears about artificial intelligence (AI) disrupting established software businesses, further dampening investor sentiment and contributing to pressure on Dow futures.
This activity follows a positive day for U.S. equities, during which the S&P 500 closed up by 0.8%, marking its second consecutive day of gains. The Nasdaq Composite surged approximately 1.3%, and the 30-stock Dow gained roughly 307 points, or 0.6%. The rebound in the software and technology sectors was notable, with Oracle rising by 1.2%, and all the “Magnificent Seven” tech giants finishing the trading day in the green. Microsoft, which has been a laggard in 2023, marked a recovery with a gain of about 3%.
Despite these positive turns in the market, concerns persist over the software and cybersecurity sectors. Analysts have expressed that the rapidly evolving capabilities of AI products might pose challenges for traditional software providers. J.P. Morgan Global Wealth Management’s U.S. equity strategist Abigail Yoder noted on CNBC’s “Closing Bell” that while near-term earnings revisions for software appear positive, the focus is increasingly on the long-term valuation of these companies in light of AI advancements.
Looking ahead, traders are poised for upcoming earnings reports from Warner Bros. Discovery, Dell Technologies, and CoreWeave, all set to be released Thursday. Moreover, investors are also preparing for weekly jobless claims data due to be released shortly, alongside the anticipated January producer price index reading coming Friday.
