NVIDIA's Guidance Falls Short of Expectations, US Futures Flat Pre-Market

NVIDIA’s Q1 adjusted earnings per share (EPS) was $1.87, higher than the expected $1.75, and revenue of $8.16 billion also surpassed expectations. The Q2 revenue guidance range is $89.1 billion to $92.8 billion, with the midpoint above the market consensus of $86.8 billion, but it did not reach Bloomberg's compiled expected upper limit of $96 billion. Some investors perceive the guidance as insufficient force, resulting in a slight after-hours drop in stock price. Pre-market, NVIDIA's loss narrowed to about 0.1%. The company also announced an expanded share repurchase of $80 billion and increased its quarterly dividend to $0.25 per share.

U.S. stock futures have been fluctuating around the flat line. Iran negotiation news continues to dominate market sentiment, with Trump stating that the US-Iran talks have entered "the final stage", Tehran is reviewing the US text but has not yet formally responded, and Pakistan's mediation efforts are described as being at a "crucial stage". Boosted by this, oil prices have fallen from the high, Brent crude down about 0.7%, WTI briefly broke $100 then fell back into the $97 to $100 range.

In Europe, the May PMI data was a disappointment across the board, with the Eurozone composite PMI at a preliminary 47.5 and France's composite PMI plummeting to 43.5, the largest contraction since the end of 2020. The European Commission downgraded the Eurozone GDP growth forecast for 2026 to 0.9% on the same day and raised the inflation forecast to 3%. ECB official Rehn warned that the economy is evolving towards an unfavorable scenario and hinted that interest rate hikes may be necessary to maintain credibility.

Key points of focus for today include: the U.S. May PMI preliminary value, initial jobless claims, and Walmart and Deere & Company earnings reports. Fed officials Barkin and Goolsbee will give speeches, and Bank of England Governor Bailey is also on the speaker list.