Nasdaq 100 futures drop after chip giant Nvidia offers light guidance

Stock futures were mixed Wednesday evening as investors digested the disappointing update from Nvidia, the technology industry’s economic leader.

Stock futures tied to the Dow Jones Industrial Average rose 21 points, or less than 0.1%. Those of the S&P 500 Index fell less than 0.1%, while those of the Nasdaq 100 Index were down 0.3%.

The move in futures comes after some disappointing quarterly reports from the technology sector. Shares of chip maker Nvidia fell more than 6% in extended trading after the company provided weaker-than-expected guidance for the second quarter. The company’s chief financial officer said Nvidia will slow hiring.

Similarly, Snowflake software shares tumbled nearly 14% after the company’s operating margin guidance came in lower than expected.

Although first-quarter earnings for the market as a whole were largely in line with historical trends, there were dramatic declines for some major stocks following earnings reports as investors look for the impact of inflation and slowing economic growth.

“If there’s any reason to sell, they embrace it,” said Jeremy Gonsalves, national director of portfolio management at BNY Mellon Wealth Management.

Stocks rose during regular trading hours on Wednesday, with the Nasdaq up 1.5% to lead the way. The S&P 500 rose 0.9%, while the Dow rose 0.6%.

All three indicators are positive for this week, which puts it on the right track to snap out the long losing streaks. The Dow has fallen for eight consecutive weeks, while the S&P 500 and Nasdaq have fallen for seven consecutive weeks.

One bright spot for investors on the earnings front was the retail trade with Williams-Sonoma, which jumped 6% in extended trading after beating estimates in net profit. Macy’s, Dollar Tree and Dollar General are among the companies that reported their results before the bell Thursday.

Also on Thursday, investors will get an updated look at weekly jobless claims and a second reading of first-quarter GDP. Pending home sales data will follow later in the morning.