The US stock market futures rose on Wednesday, as investors awaited the earnings report from Nvidia, a leading chipmaker and artificial intelligence company. The rally attempt was also supported by strong gains from Tesla, Apple, Microsoft and other tech giants.
Nvidia Earnings Expected to Beat Estimates
Nvidia is scheduled to report its second-quarter earnings after the market close on Wednesday. Analysts expect the company to post a revenue of $6.33 billion, up 63% year-over-year, and an earnings per share of $1.02, up 85% year-over-year. The company has a history of beating Wall Street expectations, and its stock has been on a strong uptrend since last year.
Nvidia is also expected to provide an update on its planned acquisition of Arm, a British chip designer, which faces regulatory hurdles in several countries. The deal, valued at $40 billion, would give Nvidia access to a vast portfolio of chip technologies and patents, and strengthen its position in the global semiconductor industry.
Nvidia is one of the leaders in the field of artificial intelligence, which is driving innovation and growth in various sectors such as gaming, cloud computing, autonomous vehicles, health care and more. The company’s products and platforms are widely used by developers, researchers and customers around the world.
Nvidia’s stock closed at $223.60 on Tuesday, up 2.4%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The stock has a relative strength index (RSI) of 66, which is close to the overbought level of 70, suggesting that it may be due for a pullback or consolidation.
Tesla Stock Rebounds After AI Day Event
Tesla, the electric vehicle maker led by Elon Musk, also boosted the tech rally on Wednesday, as its stock rebounded from a recent slump. The company held its AI Day event last week, where it showcased its latest innovations and projects in artificial intelligence, such as its Dojo supercomputer, its humanoid robot and its self-driving software.
Tesla’s AI Day event was aimed at attracting talent and investors to its vision of creating a fully autonomous driving system that can handle all kinds of road scenarios and conditions. The company also announced that it will launch a subscription service for its Full Self-Driving (FSD) package, which will allow customers to access the advanced features without paying a lump sum fee.
Tesla’s stock closed at $709.74 on Tuesday, up 4%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The stock has a relative strength index (RSI) of 54, which is in the neutral range, suggesting that it may have more room to run.
Apple, Microsoft and Other Tech Giants Join the Rally
Other tech giants such as Apple, Microsoft, Amazon and Google also joined the rally on Wednesday, as they benefited from the strong demand for their products and services amid the ongoing pandemic. These companies have been reporting impressive earnings and revenue growth in recent quarters, as they dominate the markets for smartphones, cloud computing, e-commerce and online advertising.
Apple’s stock closed at $149.62 on Tuesday, up 1.6%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The stock has a relative strength index (RSI) of 59, which is in the neutral range, suggesting that it may have more room to run.
Microsoft’s stock closed at $304.82 on Tuesday, up 1.6%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The stock has a relative strength index (RSI) of 67, which is close to the overbought level of 70, suggesting that it may be due for a pullback or consolidation.
Amazon’s stock closed at $3,319.79 on Tuesday, up 2%. It is trading below its 50-day moving average but above its 200-day moving average, indicating a mixed momentum. The stock has a relative strength index (RSI) of 48, which is in the neutral range, suggesting that it may have more room to run.
Google’s stock closed at $2,816.00 on Tuesday, up 1.8%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The stock has a relative strength index (RSI) of 64, which is in the neutral range, suggesting that it may have more room to run.
Dow Jones Futures Rise Ahead of Fed Minutes
The Dow Jones Industrial Average futures rose by 0.3% on Wednesday, as investors awaited the release of the minutes from the Federal Reserve’s latest monetary policy meeting. The minutes are expected to provide more clues on the Fed’s plans to taper its bond-buying program and raise interest rates in response to the rising inflation and economic recovery.
The Dow Jones Industrial Average closed at 35,404.50 on Tuesday, up 0.1%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The index has a relative strength index (RSI) of 62, which is in the neutral range, suggesting that it may have more room to run.
The S&P 500 futures rose by 0.4% on Wednesday, as the broad market index also benefited from the tech rally. The S&P 500 closed at 4,479.53 on Tuesday, up 0.2%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The index has a relative strength index (RSI) of 66, which is close to the overbought level of 70, suggesting that it may be due for a pullback or consolidation.
The Nasdaq 100 futures rose by 0.6% on Wednesday, as the tech-heavy index outperformed the other major benchmarks. The Nasdaq 100 closed at 15,374.33 on Tuesday, up 0.5%. It is trading above its 50-day and 200-day moving averages, indicating a positive momentum. The index has a relative strength index (RSI) of 69, which is close to the overbought level of 70, suggesting that it may be due for a pullback or consolidation.