U.S. stocks ticked higher in early dealmaking on Wednesday as investors geared up for quarterly earnings from artificial intelligence-darling Nvidia (NASDAQ: NVDA).
By 09:50 ET (14:50 GMT), the benchmark S&P 500 had gained 29 points or 0.5%, the tech-heavy Nasdaq Composite had advanced by 139 points or 0.7%, and the 30-stock Dow Jones Industrial Average had risen by 81 points or 0.2%.
The S&P 500 and Nasdaq both slipped in the previous session, while the Dow inched up. Traders were assessing economic data which showed a deterioration in U.S. consumer confidence and suggested that households were fretting over the potential impact on inflation of President Donald Trump’s import tariff plans.
Traders are now shifting their focus to fourth-quarter results from Nvidia, the semiconductor titan that has often been viewed as a figurehead of a surge in enthusiasm around the capabilities of AI. Nvidia, which designs chips that are considered to be integral parts of AI applications, is due to report after U.S. markets close.
Executives will likely face questions from analysts about the implications of the recent emergence of a low-cost AI model from Chinese start-up DeepSeek, which raised major questions over the sustainability and eventual returns from massive AI investments by mega-cap U.S. technology companies. The market ructions caused by DeepSeek hit Nvidia particularly hard, with the stock shedding $593 billion in value in a single session in late January — the worst one-day loss in Wall Street history.
Nvidia is tipped to post overall fourth-quarter revenue of $38.25 billion, including $34.06 billion in sales at its crucial data center business, according to Bloomberg consensus estimates. For the first quarter, the company is expected to guide for a top-line total of $42.26 billion.
In individual stocks, shares in Super Micro Computer (NASDAQ:SMCI) surged after the company filed its delayed financial reports. The filings will keep the group compliant with Nasdaq index requirements.
General Motors (NYSE:GM) shares jumped after the carmaker announced a new $6 billion share repurchase authorization and a dividend increase of $0.03 per share.
Lowe’s (NYSE:LOW) reported fourth-quarter adjusted earnings per share that topped consensus estimates, as the home improvement chain said it was boosted by its strategy to increase market share by selling to both retail and professional customers. Shares in the group rose.
Workday (NASDAQ:WDAY) shares spiked by more than 7% after the AI-powered enterprise management platform reported fourth-quarter earnings and revenue that exceeded analyst expectations, while also providing robust guidance for the upcoming fiscal year.
Shares in AppLovin (NASDAQ:APP) tumbled after Culper Research disclosed a short position in the stock.
Global payments group Flywire ‘s (NASDAQ:FLYW) stock price sank by more than 40% after it posted weaker-than-anticipated fourth-quarter revenue.
Elsewhere, oil prices were hovering near two-month lows, as investors gauged the prospects of a deal to halt the war in Ukraine and ongoing tariff threats.
The U.S. dollar strengthened, bouncing from almost 11-week lows, mirroring a rebound in U.S. Treasury yields fueled by soft economic data and concerns over President Donald Trump’s tariff plans.
