US Stock Market: Dow futures down over 100 points, US-Iran talks in focus — Can Nvidia extend rally?

A day after Wall Street extended gains to a second straight session in Wednesday's trade, Dow Jones Industrial Average futures -- an early indicator of the American blue-chip index -- signalled a muted start the next day. At around 1:45 pm India time, Dow futures were trading down 117 points -- or 0.2 per cent -- at 49,417 while broader market futures also edged lower, signalling a cautious tone for the upcoming session in the US.

A quick take on Wednesday's trade on Wall Street | How Dow Jones, S&P 500, Nasdaq Composite fared

US stock markets closed higher on Wednesday, February 25, with technology shares leading gains, but concerns over Iran tensions and post-earnings weakness in NVIDIA kept investors cautious as Dow futures slipped to 49,427 later in the day.

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The Dow Jones Industrial Average rose 307.7 points (0.6 per cent) to close at 49,482.2, while the S&P 500 Index advanced 56.1 points (0.8 per cent) to 6,946.1. The technology stocks-heavy Nasdaq Composite climbed 1.3 per cent to 23,152.1, supported by heavyweights and optimism around Artificial Intelligence-related demand.

The US Dollar Index was flat at 97.689. Gold futures (April delivery) were trading lower by $25.1 -- or 0.5 per cent -- at $5,201.1 per troy ounce.

Markets gained momentum during regular trading hours, but geopolitical uncertainty and post-earnings volatility in NVIDIA limited overnight optimism.

Technology shares lead Wall Street gains

Technology stocks remained the biggest driver of Wednesday’s rally as investors positioned themselves ahead of NVIDIA’s earnings and continued to bet on strong artificial intelligence spending.

The Nasdaq Composite outperformed major indices, rising 1.26 per cent, while the S&P 500 gained 0.81 per cent and the Dow Jones Industrial Average added 0.63 per cent.

NVIDIA shares rose about 1.4 per cent ahead of its results, reflecting strong expectations for AI-driven growth. Investors also took comfort from easing concerns that artificial intelligence could hurt the software industry.

Strong gains in technology, financials and utilities sectors helped push markets higher by the closing bell.

NVIDIA earnings impress but shares turn volatile

NVIDIA reported blockbuster quarterly results, highlighting continued strength in artificial intelligence demand.

The chipmaker posted $68.1 billion in quarterly revenue, well above market expectations of about $65.7 billion, while net income surged to $42.96 billion. The company also forecast revenue of about $78 billion for the current quarter, exceeding analyst estimates.

Growth was driven primarily by NVIDIA’s data centre business, which generated $62.3 billion in quarterly revenue as demand for AI chips continued to surge.

Despite strong results, NVIDIA shares turned volatile in after-hours trading and erased most of their early gains, contributing to a slight decline in US stock futures.

Investors remain cautious about the high valuations of tech stocks and the heavy spending by leading AI companies.

Meanwhile, rising tensions with Iran and ongoing tariff disputes continue to make everyone uneasy. Attention is focused on the upcoming nuclear talks between the US and Iran in Geneva.

In truth, the recent exchanges between these two nations have unsettled global markets. Even with strong earnings reports from companies, traders are staying vigilant.

Trade policy also remains a concern after US President Donald Trump implemented a 10 per cent tariff on global imports, although markets largely ignored earlier threats of higher duties.

The Supreme Court ruling that declared many of the proposed tariffs illegal also helped calm investor fears.

US-Iran talks in focus

Investors are closely watching upcoming nuclear negotiations between the United States and Iran, which are set to enter a third round in Geneva, Switzerland, amid rising geopolitical tensions. Iran’s top diplomat has arrived for indirect talks as both sides continue to signal a preference for a diplomatic solution despite growing pressure.

According to foreign media reports, the United States has imposed fresh sanctions targeting vessels linked to Iran’s oil trade, while President Donald Trump has warned of possible use of force if negotiations fail. Washington has also increased its military presence in the Middle East, adding to market uncertainty even as global equities remain supported by strong corporate earnings.