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US futures rebound ahead of Nvidia earnings
US stock futures climbed ahead of Nvidia’s critical earnings report, with investors closely watching for AI sector implications. Meanwhile, China plans a $55 billion bank recapitalization as part of its economic stimulus efforts.
Nvidia shares climbed 2.3% in premarket trading ahead of its earnings report.
China plans a $55 billion injection into its major banks to stabilize the economy.
The euro holds firm amid a Ukraine-US minerals pact, with traders eyeing 1.05 resistance.
US futures rebound as Nvidia earnings loom
US stock futures edged higher Wednesday, with contracts on the S&P 500 rising 0.5%, the Nasdaq 100 advancing 0.8%, and Dow Jones futures climbing nearly 150 points. The gains follow a four-day losing streak for both the S&P 500 and Nasdaq as investors brace for Nvidia’s much-anticipated earnings report, due after the closing bell. The chipmaker’s stock was up about 2.3% in premarket trading, as Wall Street seeks clarity on how the emergence of DeepSeek may affect the AI infrastructure landscape.
For the first time since 2022, Nvidia reports earnings with its shares lower since the prior quarter. The report comes nearly a month after DeepSeek’s debut unsettled the AI outlook, making this earnings release among the most consequential yet—not just for Nvidia, but for US equities broadly.
Leading up to the results, Nvidia’s gains are lifting Nasdaq 100 futures, while Tesla, which dragged the "Magnificent Seven" gauge into correction territory on Tuesday, is attempting a modest rebound.
Notably, Nvidia’s stock has declined on its last five earnings release days, albeit by an average of just 1.4%—roughly half of Tuesday’s drop. The aftermath, however, is often more telling. Since OpenAI’s ChatGPT launch in late 2022, Nvidia’s stock has exhibited an average post-earnings move of 10.7%. Still, the November earnings release—during a period of broad AI enthusiasm—saw the stock barely budge, gaining just 0.53%.
China readies $55 Billion bank recapitalization
China is preparing to inject at least $55 billion into three of its largest banks, according to people familiar with the matter. The move, which could be finalized by June, is part of Beijing’s broader stimulus initiative unveiled earlier this year.
European FX holds firm as markets eye Ukraine-US minerals pact
European currencies remain well-supported, with traders parsing the implications of a minerals agreement between Ukraine and the US. While details are scant, the pact is drawing comparisons to World War II-era Lend-Lease agreements, in which the US provided military equipment to Europe in exchange for strategic arrangements, such as access to military bases.
Should the deal evolve into a full-fledged US security guarantee, it could provide an additional tailwind for European FX. However, given the shifting US foreign policy stance over the past month, such an outcome remains uncertain.
EUR/USD continues to test the 1.05 level, which remains the upper bound of its expected trading range. Resistance in the 1.0530-1.0550 region is likely to hold, while renewed focus on tariffs next week could drag the pair back toward 1.04 or lower.
German consumer confidence slipped slightly in March, with additional consumer and business sentiment readings from across the eurozone due in the coming days. A move below 1.0450 in EUR/USD could help ease upside pressure in the near term.
