U.S. stock futures were mixed Thursday as Nvidia’s earnings weighed on technology shares. Meanwhile, Tesla’s European sales continued to decline in July, and doubts emerged over the U.S.-Japan trade deal after Tokyo’s lead negotiator canceled a planned Washington visit.
Nvidia Retreats Amid China Concerns
Nvidia (NASDAQ:NVDA) reported strong quarterly results after Wednesday’s market close, surpassing analysts’ estimates and forecasting third-quarter revenue above Wall Street expectations.
However, weaker-than-expected data center revenue and uncertainty over China projections caused investors to question the company’s lofty valuation, sending shares lower in after-hours trading. The drop erased roughly $110 billion from Nvidia’s $4.4 trillion market capitalization.
Nvidia posted second-quarter earnings of $1.04 per share, beating the $1.01 forecast, with revenue at $46.7 billion. The company projected third-quarter revenue of $54 billion, plus or minus 2%, exceeding analysts’ $52.76 billion expectations. Yet data center revenue, Nvidia’s largest segment, came in at $41.1 billion, below the $41.34 billion estimate, largely because no H20 chips were sold in China during the quarter.
CEO Jensen Huang expects permission to resume selling Nvidia chips to China after reaching an agreement with U.S. President Donald Trump to pay commissions to the U.S. government. “But with no formal U.S. rules in place and questions about whether Chinese regulators will discourage purchases of Nvidia chips,” the company excluded potential China sales from its current-quarter forecast.
Nvidia CFO Colette Kress added, “the company will ship between $2 billion and $5 billion in H20 revenue in the current quarter, if geopolitical issues were to subside.” She noted, however, that the outlook for China remains highly uncertain.
U.S. Futures Mixed as Tech Sector Feels Pressure
Thursday morning, S&P 500 futures rose 2 points (0.1%), Dow futures added 127 points (0.3%), while Nasdaq 100 futures fell 17 points (0.1%). Wednesday had been a strong session, with the S&P 500 hitting a record close. The indices are on track for monthly gains, with the S&P 500 and Nasdaq Composite each up more than 2%, and the Dow Jones Industrial Average rising over 3%.
Investors are also monitoring earnings from Snowflake (NYSE:SNOW) and NetApp (NASDAQ:NTAP), along with weekly initial jobless claims and Q2 GDP figures.
Tesla Sales Drop Sharply in Europe
Tesla (NASDAQ:TSLA) experienced a steep decline in European sales and market share in July, according to data from the European Automobile Manufacturers’ Association (ACEA). Despite overall EV sales increasing in the region, Tesla lagged behind Chinese competitor BYD, which captured a larger market share.
ACEA data showed Tesla’s total new car registrations in the EU, EFTA, and the U.K. fell over 40% year-on-year. Market share also dropped to 0.8% from 1.4% last year, with January–July sales down 33.6%. Meanwhile, total battery EV sales in Europe rose 33.6% in July, representing 15.6% of the car market compared with petrol at 28.3% and hybrid EVs at 34.7%.
Tesla’s updated Model Y has had little impact, while European competitors continue to challenge the market. CEO Elon Musk’s support of U.S. President Trump and ties to a German far-right party have further affected Tesla’s image in Europe.
Japan Trade Talks Delayed
Japan’s chief trade negotiator, Ryosei Akazawa, canceled a U.S. visit, postponing talks aimed at finalizing a $550 billion investment package tied to tariff relief.
“It was found that there are points that need to be discussed at the administrative level during coordination with the American side. Therefore, the trip has been cancelled,” Japan’s government spokesperson Yoshimasa Hayashi said Thursday.
In July, Washington and Tokyo agreed on a 15% tariff on imports from Japan in exchange for investment via government-backed loans and guarantees. President Trump described it as “our money to invest” and said the U.S. would retain 90% of profits, while Japanese officials emphasized that investments must also benefit Japan.
Oil Prices Retreat
Oil fell on expectations of lower U.S. fuel demand as the summer driving season winds down. At 02:55 ET, Brent crude dropped 0.5% to $66.91 per barrel, and WTI fell 0.9% to $63.59 per barrel.
Both benchmarks had climbed the previous session after the Energy Information Administration reported a 2.4 million-barrel drop in U.S. crude inventories, above analysts’ 1.9 million-barrel forecast. While this reflected strong demand ahead of Labor Day, the end of summer typically signals slower U.S. fuel consumption.
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