U.S. stock futures ticked down Wednesday morning after the major averages incurred a second day of losses, fueled by a decline in Nvidia
Futures for the Dow Jones Industrials declined 69 points, or 0.2%, to 38,523.
Futures for the S&P 500 shed 14.25 points, or 0.3%, at 4,977.25.
Futures for the NASDAQ dropped 108.75 points, or 0.6%, to 17,409.50.
In premarket action, Palo Alto Networks shed more than 22% after the cybersecurity company cut its full-year revenue guidance. SolarEdge Technologies lost more than 19%, dropping on weak first-quarter guidance..
A slump in Nvidia — which slid more than 4% Tuesday and was off another 1.7% in the premarket Wednesday — weighed on the Nasdaq and S&P 500 as sentiment soured the day before the chip giant is expected to post its quarterly results. Concerns surrounding Nvidia’s high valuation have grown leading up to the company’s earnings announcement, slated for Wednesday after the bell. The stock has soared about 225% over the past year.
On Wednesday, Wall Street will also have an eye out for the minutes from the Federal Reserve’s January meeting, seeking further insight on where the central bank stands on rates. This comes on the back of hotter-than-expected economic data the previous week.
Other companies slated to announce their quarterly results Wednesday include HSBC, Wingstop and Analog Devices before the bell. In addition to Nvidia, Etsy will also report its results in the afternoon.
In other market news, Amazon shares rose 1% premarket following news that it will replace Walgreens Boots Alliance next week in the Dow. Walgreens shed roughly 3%.
In Japan, the Nikkei 225 slid 0.3% Wednesday, while in Hong Kong, the Hang Seng index leaped 1.6%.
Oil prices eked up 0.1 cent to $77.05 U.S. a barrel.
Gold prices gained $2.20 to $2,042 U.S. an ounce.
