US Stocks Likely To Open Lower Ahead Of Nvidia's Q1 Earnings: 'A New Modest Bear Market Is Now Underway,' Says Expert

U.S. stock futures were trading below the flatline on Wednesday after rallying on Tuesday. Futures of major benchmark indices declined in premarket.

Investors will eye the technology bellwether Nvidia Corp.‘s NVDA first-quarter earnings, which will be announced after the market closes.

The S&P 500 broke a four-day losing streak on Tuesday as the markets opened after a long weekend following Memorial Day. The stocks got a boost from President Donald Trump‘s extension of the 50% tariffs on Sunday till July 9th, which he had initially announced on Friday.

Meanwhile, the 10-year Treasury bond yielded 4.47% and the two-year bond was at 3.96%. The CME Group's FedWatch tool‘s projections show markets pricing a 97.9% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.25% to $589.65, while the QQQ declined 0.22% to $520.09, according to Benzinga Pro data.

Cues From Last Session:

U.S. stocks settled higher Tuesday, with information technology, consumer discretionary, and communication services leading gains across all S&P 500 sectors.

In corporate news, AutoZone Inc. AZO reported weaker third-quarter earnings, while E2open Parent Holdings Inc. ETWO surged 25% on news of a $2.1 billion acquisition by WiseTech Global.

On the economic front, March’s S&P CoreLogic Case-Shiller Home Price Index rose 4.1% year-over-year, and new manufactured goods orders dipped 6.3% in April.

Insights From Analysts:

Jurrien Timmer, the director of global macro at Fidelity Investments, explained in his note that the market was rangebound and lower and upper boundaries for the market have been set.

He highlighted that stocks were down 20% and they have recovered since, "That suggests that while the lower boundary for this market correction may have been established, so has the upper boundary."

"All this puts me firmly in the trading range camp in terms of what the next 6-12 months will bring. I suspect that this range might be defined by the April low of 4835 as the lower boundary, and the recent highs of 6000 as the upper boundary," he explained.

If Timmer’s range-bound market forecast holds, the cyclical bull market that began in October 2022 likely concluded in February 2025, after 30 months.

He added that "a new modest bear market is now underway," saying, "Bear markets consist of both a price and time element, and if this one lasts 6-12 months it would meet both conditions."

Meanwhile, Fabio Bassi, JPMorgan’s head of cross-asset strategy, also told CNBC that the S&P 500 could “remain rangebound, with limited short-term upside.” — https://www.cnbc.com/2025/05/27/dont-expect-the-market-to-go-anywhere-this-summer-says-jpmorgan.html

“The rally to our bull case scenario of 5,800 for S&P 500 has played out, but from here we expect a consolidation and range-bound dynamic," Bassi explained.

Meanwhile, Ed Yardeni said in his note that “The widely feared global sovereign debt crisis has been postponed for another day.”

The yields on super-long Japanese government bonds (JGBs) fell sharply on Tuesday after Reuters reported that the country’s finance ministry might issue fewer of these bonds.

He explained that this “helped to bring down the US 10-year Treasury yield from 4.51% on Friday to 4.46% (On Tuesday).”

See Also: How to Trade Futures

Upcoming Economic Data

Here’s what investors will keep an eye on Wednesday:

• Minneapolis Fed President Neel Kashkari will speak in Tokyo again at 4:00 a.m., and minutes of the Fed’s May FOMC meeting will be out by 2:00 p.m. ET.

Stocks In Focus:

• DICK’S Sporting Goods Inc. DKS fell 0.63% in premarket on Wednesday as analysts expect it to report quarterly earnings of $4.34 per share on revenue of $3.59 billion, before the opening bell.
• Abercrombie & Fitch Co. ANF was up 0.51% ahead of its earnings, which are supposed to be released before the opening bell. Analysts expect earnings of $1.40 per share on revenue of $1.08 billion.
• NVIDIA Corp. NVDA was 0.044% above the flatline as analysts expect it to report quarterly earnings of 88 cents per share on revenue of $43.54 billion, after the closing bell.
• HP Inc. HPQ advanced 0.39% ahead of its earnings, which are supposed to be released after the closing bell. Analysts expect earnings of 80 cents per share on revenue of $13.15 billion.
• Box Inc. BOX surged 11.48% after posting better-than-expected first-quarter results and raised its FY2026 guidance after Tuesday's closing bell.
• Macy’s Inc. M was 1.08% higher as analysts expect it to report quarterly earnings of 15 cents per share on revenue of $4.43 billion, before the opening bell.
• Travelers Companies Inc. TRV was 0.14% lower after it signed a definitive agreement to sell the personal insurance business and the majority of the commercial insurance business of Travelers Canada to Definity Financial Corporation.

Commodities, Gold, And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.77% to hover around $61.36 per barrel.

Gold Spot US Dollar rose 0.67% to hover around $3,322.61 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.01% at the 99.5330 level.

Asian markets closed lower on Wednesday except South Korea's Kospi index. China’s CSI 300, India's S&P BSE Sensex, Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng indices fell. European markets were also lower in early trade.

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