Stock market today: Dow, S&P 500, Nasdaq step higher as Nvidia earnings loom large

US stock futures inched higher on Wednesday ahead of Nvidia’s (NVDA) earnings, seen as a crucial litmus test for the AI trade that could set the direction of markets for days to come.

Dow Jones Industrial Average futures () rose about 0.2%, while S&P 500 futures () put on 0.1%. Contracts on the tech-heavy Nasdaq 100 () were up 0.2%, after a mixed day on Wall Street.

Investors are counting down to Nvidia’s results after the bell, hoping the last of the “Magnificent Seven” tech megacaps to report can provide some fresh momentum for stocks. It’s seen as a reality check on just how important the AI poster child (and its cousins) are to the two-year bull market.

The $3.61 trillion chipmaker, now the world’s most valuable company, has seen its stock surge 200% this year so far, hitting record highs after the presidential election. The European Central Bank has warned of a bubble in AI stocks amid high concentration and the risk that lofty earnings hopes won’t be met.

Nvidia’s share price was slightly higher in premarket, after surging on Tuesday to buoy the Nasdaq Composite (^IXIC) to a win. Traders are bracing for a potential swing of 8% — or $300 billion in market value — in either direction, going by options markets.

Elsewhere in corporates, Target (TGT) muted its outlook for holiday-season sales and profit after posting a big quarterly profit miss and slashing its full-year guidance. The retail giant’s shares sank as much as 18% after the earnings.

Meanwhile, the market kept a watchful eye on Trump’s team picks as it assesses whether he will deliver on his economic and tariff plans. The president-elect on Tuesday tapped TV doctor Mehmet Oz to lead Medicare and Medicaid, and chose Cantor Fitzgerald CEO Howard Lutnick to head up the Commerce Department. That opens up the search for Treasury secretary, with Trump said to be holding interviews on Wednesday.