US stocks are expected to open with modest gains despite further selling of Nvidia shares. Nvidia’s stock has decreased by 2% in pre-market trading after an 8% decline following its earnings report.
The S&P 500 futures are up by 9 points today, although they were previously up 30 points before ending down nearly 100 points yesterday. Currently, Nvidia is trading at $117, down from $136 at the open yesterday, and the S&P 500 has seen nearly all its gains lost since the US election.
This movement shows that investors remain cautious despite signs of stability in futures markets. The selling of Nvidia shares appears to be continuing, and the broader market is struggling to regain lost ground. The drop in its stock suggests that traders are reassessing long-term growth expectations after the company’s earnings report. Some might have been expecting stronger guidance, while others are likely taking profits after a strong rally earlier in the year.
With the S&P 500 futures showing a modest rise, there is a hint of resilience, but yesterday’s reversal highlights how fragile sentiment remains. A gain of 30 points earlier in the session suggested buyers were stepping in, yet that optimism faded as the day progressed. Now, with futures up by just 9 points, confidence appears measured. The broad index has now wiped out almost all advances seen since the US election, reinforcing that sellers continue to dominate in the short term.
The levels Nvidia is trading at now indicate how quickly sentiment can shift after earnings. A drop from $136 at yesterday’s open to $117 today highlights how swift corrections can be when expectations run too high. The momentum behind the decline will likely influence positioning going forward, particularly among short-term traders who react quickly to such adjustments.
As we’ve observed before, the balancing act between growth expectations and profit-taking plays a key role after major earnings announcements. When a stock has run up significantly before a report, even decent results can trigger selling if they fall short of the most optimistic forecasts. The current price action suggests that many are taking a step back to reassess Nvidia’s valuation in light of new information.
For those positioning themselves in the coming weeks, the focus should be on how broader market sentiment develops. If selling pressure persists in leading stocks, it could weigh on overall index performance. At the same time, any shift towards buying in beaten-down names could signal a stabilisation effort. It will be important to watch trade volumes and whether losses accelerate or begin to slow.
Additionally, attention should be given to how other large-cap technology stocks respond. If declines are isolated, it may indicate this is specific to Nvidia. However, if weakness extends to other key players, it could suggest a larger shift in sentiment towards the sector. Given recent market movements, each session will provide fresh insight into whether this is a contained adjustment or part of a broader retreat.
