Stock Market Update

Equity futures point to a flattish opening this morning after the major averages posted solid gains in the previous session amid another day of solid tech leadership. 

NVIDIA (NVDA 198.60, +2.98, +1.5%) handily topped earnings expectations after the close while reporting record data center revenue. The stock jumped several percent in after-hours trade in reaction to the print but has since come down to a more modest level. 

Notably, NVIDIA CEO Jensen Huang told CNBC that markets were wrong about artificial intelligence's threat to software companies. While the group has made up some ground following a sharp retreat on Monday, Salesforce (CRM 185.90, -5.85, -3.1%) is lower this morning after delivering cautious guidance with its own earnings report. 

In addition to a plethora of earnings reports this morning, today is also busy on the geopolitical front. The U.S. and Iran are set to hold nuclear negotiations today, though The Wall Street Journal reports that the two countries remain far apart in their wishes.

In corporate news:

• NVIDIA (NVDA 198.60, +2.98, +1.5%) beat EPS expectations by $0.08, beat revenue expectations, and guided Q1 revenues above consensus. Data Center revenue was up 75% year-over-year to a record $62.3 billion. 
• Salesforce (CRM 185.90, -5.85, -3.1%) beat EPS expectations by $0.76 and reported revenues in-line. The company guided Q1 EPS and revenues above consensus and guided FY27 EPS and revenues in line, while also increasing its dividend. 
• Snowflake (SNOW 172.40, +3.19, +1.9%) beat EPS expectations by $0.05 and beat revenue expectations. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with Japan's Nikkei (+0.3%) and South Korea's Kospi (+3.7%) reaching fresh records. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: -1.4%, China's Shanghai Composite: UNCH, India's Sensex: UNCH, South Korea's Kospi: +3.7%, Australia's ASX All Ordinaries: +0.5%.

In news:

• Expectations for an April rate hike from the Bank of Japan have decreased, and are now just over 50%, after Prime Minister Takaichi nominated two policymakers, who are seen as dovish.
• The Bank of Korea left its policy rate at 2.50%, as expected.
• Governor Rhee said that South Korea's inclusion in the MSCI Developed Market Index could boost inflows of foreign capital.

In economic data:

• Japan's December Leading Index 111.0 (expected 110.2; last 109.9) and Coincident Indicator -0.6% m/m (expected -0.4%; last -1.0%)
• Singapore's Q4 GDP 2.1% qtr/qtr (expected 1.9%; last 2.6%). January Industrial Production 5.3% m/m (expected 4.5%; last -0.3%); 16.6% yr/yr (expected 11.0%; last 10.9%)
• Australia's Q4 Building Capital Expenditure 2.3% (last 2.3%) and Private New Capital Expenditure 0.4% qtr/qtr (expected -0.1%; last 6.4%)
• New Zealand's February ANZ Business Confidence 59.2 (last 64.1)

Major European indices trade on a mostly higher note. STOXX Europe 600: +0.2%, Germany's DAX: +0.4%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.9%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: -0.1%.

In news:

• The U.K.'s Labour party could lose a parliamentary seat after today's by-election in Manchester, though the result will not be known until tomorrow.
• Rolls-Royce reported strong results and raised its targets for 2028.
• The U.K. is preparing to announce a critical minerals deal with Kazakhstan.
• Iceland will hold a referendum on resuming EU accession talks.

In economic data:

• Eurozone's February Business and Consumer Survey 98.3 (expected 99.8; last 99.3). January Private Sector Loans 3.0% yr/yr (expected 3.1%; last 3.0%), January loans to nonfinancials 2.8% yr/yr (expected 3.1%; last 3.0%)
• Italy's February Consumer Confidence 97.4 (expected 97.2; last 96.8) and Business Confidence 88.5 (last 89.2)
• Swiss Q4 Employment Level 5.544 mln (last 5.532 mln)