Nasdaq Futures Stagnate Amid Nvidia's China Trade Challenges

Nasdaq futures remained flat, affected by Nvidia's share decline, as the company excluded potential China sales from forecasts due to Sino-U.S. trade tensions. Nvidia's robust revenue forecast and share buyback plan reassured investors. Broader market anxieties lingered amid anticipated Federal Reserve rate cuts and geopolitical influences on AI demand.

Nasdaq futures are experiencing a stall on Thursday, primarily attributed to a drop in Nvidia shares. The AI chip leader excluded potential China sales from its quarterly forecast due to lingering Sino-U.S. trade tensions. Earlier, Nvidia secured licenses to sell H20 chips to China, but geopolitical frictions prevail.

In premarket trading, Nvidia's shares slipped 1.8%, raising concerns about data center spending and potential slowdowns in AI infrastructure demand. Meanwhile, CEO Jensen Huang's optimistic remarks and a $60 billion share buyback offer some solace to anxious investors. Market leaders remain cautious of the soaring S&P 500 valuations.

Meanwhile, the anticipated Federal Reserve rate cut continues to stir market speculation. Traders assigned an 88.8% likelihood of a rate cut in September; however, economic indicators like the Personal Consumption Expenditures index could influence decisions. The economic landscape remains volatile amid overarching geopolitical and trade challenges.

(With inputs from agencies.)