U.S. stock futures nudged higher Wednesday as markets awaited crucial earnings from Nvidia, the AI-focused tech giant, which is expected to influence short-term investor sentiment. Meanwhile, new U.S. tariffs on Indian imports are now in effect, and France remains under scrutiny due to ongoing political instability.
Nvidia’s earnings in focus
Nvidia (NASDAQ:NVDA), a key indicator of the artificial intelligence boom, is set to release its fiscal second-quarter results after U.S. market close.
Technology shares, which had driven markets upward for much of the year, have cooled recently as investor enthusiasm tempered. Nvidia’s upcoming results are expected to provide a benchmark for near-term risk appetite, revealing whether the lofty valuations for AI-focused companies are justified.
The chipmaker is projected to report a 53% year-on-year revenue increase to $46 billion for the second quarter, according to LSEG data. While significant, this figure falls short of the triple-digit growth seen in previous quarters. Investors will also be closely monitoring Nvidia’s outlook, particularly the company’s China business, which is heavily influenced by trade negotiations and potential restrictions between the U.S. and China.
U.S. futures modestly higher
Ahead of Nvidia’s results, U.S. stock futures inched upward. At 03:00 ET, S&P 500 futures rose 20 points (0.1%), Nasdaq 100 futures added 4 points (0.1%), and Dow futures climbed 15 points (0.1%).
The major indices closed higher on Tuesday, buoyed by confidence ahead of Nvidia’s earnings, with the chipmaker seen as a bellwether for broader markets and AI-related developments. Nvidia has beaten earnings expectations in 11 of its past 12 quarterly reports.
Despite historically challenging August trading, all three major U.S. indexes are on track for gains this month: the S&P 500 up 2%, the Dow Jones Industrial Average up 2.9%, and the Nasdaq Composite up 2%.
U.S.-India tariffs now active
President Donald Trump’s recently doubled 50% tariffs on Indian exports to the U.S. have taken effect, following a missed deadline for a trade agreement with New Delhi.
Earlier this month, Trump announced 25% tariffs on Indian goods, stating the rate would double to 50% after three weeks as a sign of frustration over India’s continued purchase of Russian oil. July shipping data showed India as Russia’s second-largest oil buyer after Saudi Arabia.
Along with Brazil, India now faces some of the highest U.S. tariffs globally.
“We estimate 70% ($55 billion) of India’s exports to the United States are now under serious threat, accelerating downside risks to growth,” said Aastha Gudwani, India chief economist at Barclays. “From a ’good friend’ to a ’bad trading partner’, it has come a long way.”
Political and financial instability in France
French markets remain under pressure after Prime Minister François Bayrou’s plan to win support for his unpopular debt-reduction proposal failed, exacerbating political and financial uncertainty.
Earlier this week, Bayrou called for a confidence vote on his plan, scheduled for September 8. Opposition parties rejected the proposal, potentially shortening his tenure as leader of a minority government.
If Bayrou falls, President Emmanuel Macron could dissolve Parliament for fresh elections or appoint a new government, though neither solution is expected to resolve the country’s budgetary issues or political gridlock.
France’s CAC 40 has fallen over 3% this week, while the spread between French and German 10-year government bonds—a measure of the premium investors demand to hold French debt—widened to roughly 79 basis points on Tuesday, its highest level since April.
Oil markets react to tariffs
Oil prices stabilized after sharp losses in the previous session as traders digested the impact of new U.S. tariffs on India, the world’s third-largest crude consumer.
At 03:00 ET, Brent futures slipped 0.1% to $66.66 a barrel, while U.S. West Texas Intermediate futures rose 0.1% to $63.27 a barrel. Both contracts fell over 2% on Tuesday after opening the week at a two-week high.
Goldman Sachs forecasts Brent crude prices could drop to the low $50s a barrel by late 2026, citing growing global oil surplus.
“We expect the oil surplus to widen and average 1.8 million barrels per day in 2025 Q4 (through) 2026 Q4, resulting in a nearly 800 million barrel rise in global stocks by end 2026,” the U.S. investment bank said in a client note Tuesday.
Goldman expects Brent prices to remain near forward contract levels through 2025 but fall below those contracts in 2026 as OECD stockpiles grow.
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