Nvidia, JPMorgan drive US futures higher, eye on inflation and earnings

Chip giant Nvidia led the gains on hopes that it will be able to resume sale of H20 artificial intelligence chips to China soon following assurances by the US government.

US index futures edged higher in early trade on July 15, helped by strong pre-market buying in Nvidia and JPMorgan Chase even as investors stayed cautious ahead of a key inflation reading and more earnings reports from Wall Street banks.

At 4:30 pm IST, US futures tied to S&P 500 were higher by 0.4%, while Nasdaq 100 futures rose 0.6%, buoyed by Nvidia’s 4.5% pre-market rally. Dow Jones Industrial Average futures was marginally higher.

Chip giant Nvidia led the gains on hopes that it will be able to resume sale of H20 artificial intelligence chips to China soon following assurances by the US government. The announcement signalled easing regulatory friction over advanced chip exports, fuelling optimism for a broader rebound in semiconductor shares.

Shares of JPMorgan Chase nudged 0.7% higher in pre-market action after the bank reported better-than-expected Q2 earnings. Robust investment banking and trading revenue helped offset concerns around loan growth and deposit pressure. Results from Wells Fargo and Citigroup are expected later in the day as investors gauge the health of corporate earnings amid policy uncertainty and elevated policy rates.

Expectations heading into the second-quarter earnings season remain subdued, with S&P 500 companies projected to deliver a blended earnings growth rate of 4.3% YoY, according to FactSet. That would mark the slowest pace since Q4FY23, when growth was just 4%.

CPI print in focus

All eyes are on the June consumer price index (CPI) report, due before US markets open. Economists expect headline inflation to rise 0.3% month-on-month, with the annual print moderating to 2.7%. Core CPI, which excludes food and energy, is seen rising 3% YoY.

Investors will scrutinize the report for early signs of the inflationary impact of President Donald Trump’s proposed 30% tariffs on EU and Mexican goods, set to take effect August 1. Although the session on July 14 ended higher despite tariff threats, some strategists fear the markets needs a breather after a historic rally.

Global markets largely positive

Asian markets wrapped up the trading session with a predominantly positive tone, though results were mixed amid global economic anticipation. Hong Kong’s Hang Seng led the gains to climb 1.45% higher, Japan’s Nikkei 225 rose 0.55% and South Korea’s Kospi edged up 0.4%, reflecting steady investor confidence. Australia’s ASX 200 advanced 0.7% on strong performances in tech and defensive sectors. BSE Sensex added 0.35% to close at 82,543, however, Mainland China’s CSI 300 remained flat, on concerns over slowing GDP and retail sales growth.

The cautious optimism across the region was tempered by looming US CPI data and the onset of corporate earnings season, keeping investors on edge.