US Stock Futures Slump On ‘Strategic Blow’ From Nvidia’s China Export Setback: Traders Eye Powell’s Speech, Retail Sales Data

U.S. stocks are set to open on a weaker note on Wednesday after moving lacklusterly in the previous session.

Chipmaker Nvidia Corp.’s (NVDA) disclosure of a hefty $5.5 billion charge related to new China export restrictions, the ongoing tariff uncertainty, and anxiety ahead of some key economic numbers sapped risk sentiment.

In Asian trading, the Nasdaq 100 futures led the declines with a 1.30% negative move, and the S&P 500 futures, also heavily weighted with tech stocks, fell 0.75%. The Dow futures tracking the 30-stock Dow Industrial Average were down a more modest 0.28%.

Commenting on Nvidia’s disclosure, Wedbush analyst Daniel Ives said, “The financial impact is small relatively, but the strategic blow is the focus of the market as Nvidia now has massive blockades going after the China market in the middle of this raging US/China tariff battle.”

Investor focus will also rest on the March retail sales report, which will likely shed light on the state of consumer spending that fuels about two-thirds of the economic activity. Economists, on average, expect a 1.2% month-over-month increase in retail sales and a 0.3% rise in retail sales, excluding autos.

This compares to the month-ago rates of 0.3% each.

The report is due at 8:30 a.m. EDT.

Also on the radar would be Federal Reserve Chair Jerome Powell’s speech at the Economic Club of Chicago regarding the economic outlook. The event is scheduled for 1:30 p.m. ET.

The market will also hear from Cleveland Fed President Beth Hammack at noon ET.

Among the other economic reports of significance are:

• Fed March industrial production report (9:15 a.m. ET)
• Business Inventories report for February (10 a.m. ET)
• National Association of Homebuilders’ homebuilder confidence index for April (10 a.m. ET)

Key among the earnings due for the day is from Dow component Travelers Companies, Inc. (TRV), aluminum maker Alcoa, Inc. (AA), railroad operator CSX Corp. (CSX), energy infrastructure company Kinder Morgan, Inc. (KMI), and a few regional banks.

The spotlight is also likely on the earnings report and commentary from European chip-equipment maker ASML Holdings N.V. (ASML), given it is the first key tech company to report this season.

On Tuesday, the major averages held above the unchanged line until mid-session before ending modestly lower, snapping a two-session winning streak. Traders exercised restraint as they digested the recent developments on a quiet news-flow day.

The Treasury market also saw muted trading, with the benchmark 10-year note settling slightly lower at 4.323%.

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