US stock futures declined after a sharp rally, focused on NVIDIA profits

(Reuters) -The stock index futures declined on Wednesday after a sharp gathering in the previous session, when strengthening the tariff tensions, as investors focused on the profits and developments of Ai Belweether Nvidia on the commercial front.

The shares of the chip maker decreased by 0.2 % in pre -market trading before their results, to be released after the market closed. NVIDIA is expected to report a 66.2 % increase in the revenue of the first quarter, according to the data collected by LSEG.

Traders in market options are preparing for volatility at the industry level through defensive options contracts that attract great attention to Vaneck Semiconductor ETF, which is the largest semiconductor ETF.

At 05:14 am East time, Dow E-Minis decreased 101 points, or 0.24 %, and the S&P 500 E-Minis decreased by 12 points, or 0.2 % and Nasdaq 100 E-Minis decreased 38.25 points, or 0.18 %.

Most of MEGACAP and Growth shares were traded in a flat range to a decrease after Tuesday’s increase, as Amazon.com and Meta platforms decreased by 0.4 % each.

All the three main Wall Street indicators have increased in the last session, after US President Donald Trump retracted his introductory threat by 50 % against the European Union.

The implementation of definitions is now delayed until July 9 to allow negotiations between the White House and the bloc 27.

American stocks have been set to make strong monthly gains, with both S&P 500 and NASDAQ at a pace of the best monthly offer since November 2023, as fears related to global trade, optimistic profits and inflation data that have strengthened risk.

The S&P 500 is now about 4 % of its recorded record on February 19, after up to 18.9 % less than this level in the wake of Trump’s irregular tariff ads that led to blog markets throughout a second term.

Looking forward, minutes of the Federal Policy meeting in the United States – where the central bank maintains fixed borrowing costs – at 2 pm East time.

Personal consumption spending – the preferred inflation index is scheduled to be released for the Federal Reserve – for the month of April, in addition to a second estimate of GDP in the first quarter, later this week.

The head of the Federal Reserve in New York, John Williams, said that the central banks must “respond with relative force” when inflation begins to deviate from their goal, given the great uncertainty about the economic impact of American definitions and commercial policy.

The return of the US government’s bonds, which has been a long time ago, was slightly higher after scaling multiple levels last week. Those in observation increased for 10 years 3.7 basis points to 4.47 %.

Global bond markets have recently been in the spotlight on concerns about financial sustainability in major economies, including the United States and Japan.