US OPEN: Wall Street mixed on Nvidia's earnings and US macro data

• Wall Street mixed after Nvidia’s earnings call
• US GDP slowdown confirmed in final reading
• Fed’s preferred inflation gauge revised up

Wall Street opened with reserve following highly anticipated earnings call from Nvidia (NVDA.US) last night. Perhaps ‘no surprise’ is the biggest surprise for the markets, as reflected by AI giant’s stock bouncing back and forth between the green and the red in the afterhours trading. Nvidia’s record revenue certainly appeased some worries inspired by somehow underwhelming Q4 guidance and Blackwell chips overheating issues met on the way. Nevertheless, the Q12025 guidance fell slightly below the consensus and investors might need some time to adjust to lower margins forecasted by the AI leader.

Amid key US indices, only Dow Jones shows resilience, gaining 0,35%. Nasdaq dips 1,2% due to significantly weak semiconductors and Magnificent 7 stocks, Russell 2000 loses 0,8% and S&P500 trades slightly lower (-0,05%)

Furthermore, Trump’s last minute announcement, setting March 4th as a date for Canada and Mexico tariffs to come into effect, as well as slightly pessimistic US macroeconomic data is undermining the potential rebound on Wall Street. The GDP slowdown in the States has been confirmed by today’s reading (2,3% in Q4 vs 3,1% in Q3 2024), while the PCE inflation, Fed’s preferred gauge, rose higher than expected to 2,4% in the last quarter.

Volatility currently observed on Wall Street. Source: xStation5

US100 (D1)

The Nasdaq 100 contract remains well stuck in the consolidation zone, initiated last December. After a few days of worse-than-expected US macroeconomic data and investors waiting on their toes for the Nvidia earnings, the price is little changed compared to yesterday, hanging tightly onto 100-days exponential moving average (EMA100, dark purple). Early trading is also defined by relatively lower volume levels, compared to previous sessions. 

Source: xStation5

Corporate news:

• Amazon’s (AMZN.US) AWS unit unveiled its first quantum computing chip, Ocelot, joining Google and Microsoft in the race for quantum advancements. The chip aims to reduce costs by 90% and could revolutionize fields like healthcare and chemistry. However, practical quantum computing remains at least a decade away. Amazon stock trades slightly in the red (-0,2%)

• eBay (EBAY.US) shares fall 10% after issuing a weaker-than-expected Q1 revenue forecast of $2.52B–$2.56B (vs. $2.6B est.), despite strong Q4 results. GMV grew 3.9% to $19.32B, beating estimates. Analysts see a slower start to 2025 but note long-term growth potential,  suggesting that eBay's focus on technology-driven improvements and higher-quality buyers could take time to yield significant results.

• Nvidia (NVDA.US) stock is down 2,5% in spite of reporting solid Q4 results, as mixed outlook on margins and tariffs dampened enthusiasm. Sales hit $39.3B, slightly beating estimates. Strong demand for the new Blackwell chip reassured investors, but concerns over AI spending slowdowns and competition persist.

• Salesforce's (CRM.US) fiscal-year revenue forecast fell short of expectations, despite AI-driven advancements like "Agentforce." The company reported single-digit growth for the third straight quarter, with revenue projected between $40.5B–$40.9B (est. $41.5B). Leadership changes and recent layoffs reflect Salesforce's shift toward AI-focused initiatives. Shares fall 4% in early trading.

• Snowflake (SNOW.US) is up 9% after the company projected stronger-than-expected revenue growth for the fiscal year, driven by AI adoption. Product revenue is expected to grow 24% to $4.28B, surpassing analysts' $4.23B estimate. The company is expanding AI capabilities, allowing customers to access OpenAI and Anthropic models directly. Shares surged 12% in premarket trading. Fiscal Q4 product revenue rose 28% to $943.3M, exceeding forecasts, and Snowflake now has 580 customers spending over $1M annually. Remaining performance obligations reached $6.9B, beating estimates.

• Paramount (PARA.US) missed Q4 sales and profit estimates as traditional TV revenue fell 4% to $4.98B, outweighing an 8% streaming growth. Paramount+ added 5.6M subscribers, reaching 77.5M. The film unit surged 67%, fueled by Sonic the Hedgehog 3. Shares fell as challenges in TV persist amid a pending Skydance merger. The stock is down 0,8%.