Dow, S&P 500, Nasdaq rise as Nvidia earnings loom

U.S. stock futures rose on Wednesday ahead of Nvidia’s ( NVDA ) earnings, seen as a crucial litmus test for AI trading that could set the direction of markets in the coming days.

Dow Jones Industrial Average futures (YM=F) rose about 0.2%, while S&P 500 futures (ES=F) rose 0.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.2% after a mixed day on Wall Street.

Investors are counting down to Nvidia’s after-hours results in hopes that the last of the “Magnificent Seven” tech megacaps to report can provide some new momentum for the stock. It’s seen as a reality check of just how important the AI ​​poster child (and its cousins) are to the two-year bull market.

The $3.61 trillion chipmaker, now the world’s most valuable company, has seen its stock rise 200% this year so far, hitting record highs after the presidential election. The European Central Bank has warned of a bubble in AI stocks amid high concentration and the risk that high earnings hopes will not be met.

Nvidia’s share price was slightly higher in the premarket, after rising on Tuesday to lift the Nasdaq Composite (^IXIC) to a win. Traders are bracing for a potential swing of 8% — or $300 billion in market value — in either direction, according to options markets.

Elsewhere in business, Target ( TGT ) muted its outlook for holiday season sales and earnings after posting a big quarterly profit and lowering its full-year expectations. The retail giant’s shares fell as much as 18% after earnings.

Meanwhile, bitcoin (BTC-USD) prices rose 1.4% to trade around $93,722 per token, after touching a record high of $94,078 overnight. Optimism for a crypto-friendly Trump White House has fueled the digital currency’s recent rally.

All eyes were on Donald Trump’s team selection as the market assesses whether he will deliver on his economic and tariff plans. The president-elect on Tuesday picked TV doctor Mehmet Oz to lead Medicare and Medicaid and picked Cantor Fitzgerald CEO Howard Lutnick to lead the Commerce Department. It opens the search for Treasury secretary, with Trump said to hold interviews on Wednesday.