NASDAQ-100 traded higher on Wednesday as U.S. stock index futures edged up ahead of nvidia earnings, with sentiment improving after a volatile stretch that rattled the AI trade. The early move reflected a market trying to steady itself after choppy February sessions driven by shifting expectations around artificial intelligence spending and renewed uncertainty over tariffs.
Futures pointed to a modestly positive open across the major benchmarks. Around 7:05 a.m. ET, Dow E-minis were up 122 points or 0.25%, S&P 500 E-minis rose 18.25 points or 0.26%, and Nasdaq 100 E-minis gained 89.5 points or 0.36%. The bid came after the tech-heavy Nasdaq posted a strong prior session, helped by a rebound in AI-linked names.
AI worries ease, but investors want proof in earnings
February’s uneven tape has been shaped by a basic question: whether the biggest technology companies are seeing meaningful profit lift from the surge in AI investment. The focus has moved from excitement about capability to demands for measurable payoff. Some investors have rotated toward companies viewed as clearer beneficiaries of AI, while trimming exposure to businesses perceived as vulnerable to AI-driven disruption.
Goldman Sachs analysts flagged the same tension, noting that investors are still searching for long-term winners that use AI to drive productivity, while only a limited set of firms have clearly quantified the earnings impact so far. For others, the view is that earnings stabilization is likely the key to share-price stabilization, but uncertainty around disruption may linger.
Nvidia earnings becomes the market’s main catalyst
The most important near-term checkpoint arrives after the close, when Nvidia reports results. With the chipmaker at the center of the AI infrastructure buildout, traders are watching for evidence that demand remains strong and that profits are still scaling alongside spending plans. Investors are also measuring Nvidia’s commentary against expectations tied to Big Tech’s estimated $630 billion capital spending budget for 2026.
In premarket trading, Nvidia shares were modestly higher, while other megacap and growth names were mixed—an early sign that the market is positioning carefully into the print. A convincing report can reinforce risk appetite across the Nasdaq complex, while a disappointment could revive concerns that the AI trade has outrun near-term fundamentals.
Tariffs and policy noise keep volatility in the background
Alongside earnings, investors continue to digest shifting signals around trade policy. U.S. President Donald Trump referenced stock-market gains in his State of the Union speech and suggested many countries and corporations want to adhere to existing tariff and investment agreements.
A temporary global tariff of 10% took effect Tuesday after a Supreme Court ruling last week, and the president later indicated the levy could be 15%, though timing and implementation details were unclear. That uncertainty has been an additional driver of volatility, particularly in areas of the market sensitive to global supply chains and pricing power.
Earnings moves show a market rewarding clarity
Beyond the headline AI names, individual earnings reactions underlined how sharply markets are responding to guidance. Axon Enterprise surged 16.2% after beating fourth-quarter profit estimates. Workday fell 9.4% after forecasting fiscal 2027 subscription revenue below expectations. First Solar dropped 17.3% after projecting annual sales below estimates. HP Inc slid 5.1% as it forecast a slump in PC shipments. Lowe’s declined 3.3% after issuing a weaker outlook for annual sales and profit.
Software is also back on the radar, with results later this week from Salesforce, Intuit, and Snowflake expected to draw close attention. The S&P 500 software and services index has dropped nearly 23% so far this year, a slide tied in part to disruption fears and a tougher bar for earnings visibility.
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Fed commentary may influence the next leg
At least three Federal Reserve officials are scheduled to speak Wednesday, with investors scanning for any shift in tone on the path for monetary policy. Two Fed officials speaking Tuesday signaled no near-term appetite to adjust the current interest-rate setting. For equities, the combination of steady policy expectations and resilient growth data has helped keep risk assets supported, even as pockets of the market remain under pressure.
Where the Nasdaq-100 stands
The Nasdaq-100’s advance came as traders weighed an improving mood around AI against lingering policy and earnings risks. In the background, the index is operating within a wide yearly band, and momentum can swing quickly around large-cap tech catalysts. With Nvidia reporting after the bell, the Nasdaq’s next move may come down to whether results and guidance reinforce confidence that the AI boom is still translating into durable earnings growth.
For a fuller market recap and the latest updates cited in this report, see the Reuters markets coverage.
