S&P 500 futures slightly decline as Wall Street awaits Nvidia's earnings report: real-time updates

As investors awaited Nvidia, a chipmaker, to release its quarterly earnings results on Wednesday following the bell, S&P 500 futures saw a little decrease on Tuesday night.

Nasdaq 100 futures down 0.14%, while futures linked to the broad market index fell 0.02%. The Dow Jones Industrial Average futures were nearing the zero line.

Following the release of adjusted profits for the second quarter that above forecasts, Nordstrom saw a 7% increase in after-hours trading. Ambarella, a semiconductor developer, saw a roughly 20% increase based on optimistic revenue projections for the third quarter. Calvin Klein's owner PVH plummeted more than 7% due to a dismal forecast for the current quarter.

The tech-heavy Nasdaq Composite and the general market index both gained roughly 0.2% during Tuesday's trading session. Both indices were supported by Nvidia's 1.5% rise, which was announced. In contrast, the 30-stock Dow gained just 0.02%, which was sufficient to establish a record close for the second day in a row.

In order to assess the overall sustainability of the larger tech and AI trade, Wall Street is closely monitoring Nvidia, the industry leader in artificial intelligence. With the huge semiconductor company's shares rising 159% in 2024, investors are wondering how much further the stock can go.

An update on the demand for AI and the delivery schedule for Nvidia's Blackwell processors are focal topics for investors.

According to Erin Browne, managing director and portfolio manager at Pimco, "it is hard to claim that there is not a lot of optimism priced into the market tomorrow" on CNBC's "Closing Bell" on Tuesday.

According to Browne, the prices of other AI stocks have dropped by about 10% from their peak. She continued, saying that in comparison to the five-year average, Nvidia's present valuation is not high.

Therefore, Browne added, "I think they still have upside potential and can surprise the market to the upside, even though there is undoubtedly a lot of optimism built in."

On the earnings front, companies like Kohl's, Bath & Body Works, and Foot Locker are scheduled to release their quarterly results on Wednesday morning. Investors will be watching Salesforce's earnings in addition to Nvidia in the afternoon.