US stock indices open higher on Thursday; Nasdaq Index up 0.37%; S&P 500 Index up 0.18%; Dow Index up 0.05%

US stock indices open higher on Thursday; Nasdaq Index up 0.37%; S&P 500 Index up 0.18%; Dow Index up 0.05%

US stock indices opened higher on Thursday, with the Nasdaq Index up 0.37%, the S&P 500 Index up 0.18%, and the Dow Index up 0.05%. The day's performance was influenced by expectations surrounding NVIDIA Corp. (NVDA) earnings, which were anticipated to be released after the market closed. The muted trading activity reflected a cautious approach by investors, who were reluctant to commit significant positions before the earnings report [1].

The S&P 500 (^GSPC) added 0.2%, the Dow Jones Industrial Average (^DJI) climbed 103 points (+0.2%), and the Nasdaq Composite (^IXIC) inched 0.1% higher. The day's muted trade was a sign of the market's reluctance to commit before NVIDIA's earnings report. NVIDIA represents roughly 8% of the S&P 500's weight, and its results have the potential to swing the broader market by as much as 0.7%, equivalent to $260 billion in market value [1].

Bond markets added a layer of unease, with the 10-year yield (^TNX) pushing to 4.28%, while the 30-year (^TYX) held above 4.95%, the steepest curve since April. Investors are digesting President Donald Trump’s aggressive move to fire Fed Governor Lisa Cook, a legally untested maneuver that stoked fears of political pressure on monetary policy. Despite the extraordinary circumstances, equities barely flinched — a sign Wall Street believes rate cuts are still on the horizon [1].

NVIDIA's earnings carry market-wide stakes. Expectations for NVIDIA are sky-high, with consensus forecasts calling for $46.2 billion in revenue and $1.01 in adjusted EPS, up from $30 billion and $0.68 a year earlier. Analysts project data-center sales of $41.3 billion, more than half the company’s top line. Options traders are bracing for a 6% swing in the stock, a reflection of its pivotal role not only in AI but also in the trajectory of the Nasdaq Composite [1].

Still, risks remain. Trump’s tariffs on China’s semiconductor imports — now carrying a potential 100% levy — could ripple across the sector. Nvidia already expects an $8 billion revenue hit from Beijing restrictions on U.S. chip sales. With the stock trading at 33.7x forward earnings, well above the Nasdaq’s average P/E of 28, investors are asking whether even record-breaking numbers can justify the valuation. A beat may lift the “Magnificent Seven” cohort, while a miss could jolt the S&P 500 into correction territory [1].

Technology and AI software stocks led the session, with MongoDB (MDB) surging 32% to $284.04 after reporting $591 million in revenue, up 24% year-over-year, crushing expectations of $556 million. Okta (OKTA) gained more than 5% premarket and extended gains in-session after lifting full-year revenue guidance. Other AI and cloud-linked names followed suit, with Snowflake (SNOW) advancing 4% premarket and PVH Corp. (PVH) rising after delivering $2.52 EPS on $2.17 billion in revenue, topping analyst targets despite tariff-related cost pressures [1].

Retailers and consumer stocks also delivered notable moves. Kohl’s Corp. (KSS) exploded 20% to $15.70 after quarterly earnings of $0.56 per share trounced the $0.29 estimate, on revenue of $3.35 billion versus expectations of $3.32 billion. Cracker Barrel Old Country Store (CBRL) climbed another 8% to $62.35, building on a 6% rally Tuesday, after bowing to consumer pressure — and President Trump — to revert to its old logo. Canada Goose (GOOS) soared 15% to $14.08 after reports that controlling shareholder Bain Capital received buyout bids valuing the luxury parka maker at $1.35 billion [1].

Energy markets remained volatile as geopolitics intersected with trade. Exxon Mobil (XOM) traded flat despite reports of talks with Rosneft about reentering Russia’s Sakhalin project if peace negotiations progress. Brent crude (BZ=F) steadied at $67.66 per barrel, up 0.65%, after Tuesday’s sharp decline. The S&P 500 Energy Index gained, with Chevron (CVX) also gaining amid speculation of deepening collaboration with Exxon on global projects [1].

Canadian banks provided upside surprises. Bank of Montreal (BMO) reported $3.14 EPS on $8.98 billion revenue, ahead of estimates of $2.85 EPS and $8.88 billion. Scotiabank (BNS) also beat expectations, lifting shares higher in premarket trade. In the U.S., UnitedHealth Group (UNH) edged up 0.7% to $302.61 despite reports the DOJ’s criminal probe into its Optum Rx unit is broader than expected [1].

IonQ (IONQ) added 3.8% to $42.31 after B Riley Securities initiated with a Buy rating, citing long-term value from quantum computing adoption. American Eagle Outfitters (AEO) jumped 5% to $12.78 after announcing a limited-edition collaboration with NFL star Travis Kelce, days after his engagement to Taylor Swift [1].

Market sentiment and outlook remain cautiously optimistic. With over 92% of S&P 500 constituents having reported earnings, aggregate Q2 EPS growth stands at +11%, well above the +5% expectation entering the season. The VIX (^VIX) remains subdued at 14.89, reinforcing the “buy-the-dip” mentality. The coming hours rest on NVIDIA’s (NVDA) shoulders. With traders bracing for a record-shattering quarter, the verdict will dictate whether the Nasdaq Composite breaks higher or drags the Dow Jones and S&P 500 into turbulence [1].

References:
[1] https://www.tradingnews.com/news/stock-market-today-nasdaq-sp500-dow-rise-as-nvidia-earnings-awaited