Dow futures exhibited a mixed performance on Thursday, influenced by Nvidia’s results, which had a dampening effect on the tech sector. Tesla’s sales in Europe experienced a continued decline in July, coinciding with rising uncertainties regarding the trade agreement between Japan and the U.S., following the cancellation of a trip to Washington by Tokyo’s chief negotiator.

Nvidia delivered strong quarterly results after the market close Wednesday, with the chip designer and AI bellwether reporting a beat to analysts’ estimates and forecasting third-quarter revenue that was higher than Wall Street estimates. However, a shortfall in data centre revenue and uncertainties surrounding China forecasts led investors to reassess the company’s high valuation, resulting in a decline in its shares during after-hours trading. The recent decline in stock value has resulted in a loss of approximately $110 billion from Nvidia’s overall market capitalization of $4.4 trillion. Nvidia’s second-quarter earnings of $1.04 per share surpassed expectations of $1.01, with revenue reaching $46.7 billion. The company also projected current quarter revenue of $54 billion, plus or minus 2%, exceeding the anticipated $52.76 billion. However, Nvidia’s data center revenue, which constitutes its primary source of income, reached $41.1 billion, falling short of the anticipated $41.34 billion. The shortfall can be attributed primarily to Nvidia’s absence of H20 chip sales in China throughout the quarter. CEO Jensen Huang anticipates receiving authorization to resume the sale of Nvidia’s chips to China following an agreement with U.S. President Donald Trump to remit commissions to the U.S. government. However, in the absence of established regulatory frameworks in the United States and uncertainties surrounding the likelihood of Chinese authorities dissuading acquisitions of Nvidia chips, the leading indicator in the AI market has omitted prospective sales in China from its projections for the ongoing quarter. Nvidia’s CFO Colette Kress indicated that the company anticipates shipping between $2 billion and $5 billion in H20 revenue for the current quarter, contingent upon a reduction in geopolitical tensions. However, the forecast regarding China continues to exhibit significant uncertainty.

Dow futures exhibited a mixed performance on Thursday, as the tech-heavy Nasdaq lagged following the announcement of results from the AI frontrunner Nvidia. At 02:55 ET (06:55 GMT), the S&P 500 futures exhibited an increase of 2 points, representing a 0.1% rise, while Dow futures advanced by 127 points, or 0.3%. In contrast, Nasdaq 100 futures experienced a decline of 17 points, equivalent to a 0.1% decrease. The major indices experienced a favorable trading session on Wednesday, as evidenced by the broad-based S&P 500 achieving a record close. Current trends indicate that there are expected monthly gains, with the S&P 500 and the NASDAQ Composite each showing increases exceeding 2%, while the 30-stock Dow Jones Industrial Average has risen by more than 3% during this timeframe. In addition to Nvidia’s results, market participants will analyze figures from Snowflake and NetApp, while the economic data calendar features the publication of weekly initial jobless claims and the gross domestic product growth for the second quarter.

Tesla experienced a significant decline in sales and market share in Europe during July, according to data released by the European Automobile Manufacturers’ Association on Thursday. This decline occurred despite the overall growth in electric vehicle sales within the region. Tesla’s sales fell short compared to those of its Chinese competitor BYD, which made its debut in the monthly sales data. The latter has captured a larger portion of the market compared to Tesla. Tesla’s total new car registrations in the European Union, the European Free Trade Association, and the U.K. experienced a decline of slightly more than 40% year-on-year, according to ACEA data. The ACEA represents a coalition of 15 European automakers, functioning as the principal lobbying and standards organization for the automobile sector within the bloc. Tesla’s market share in the region has contracted to 0.8%, down from 1.4% year-on-year, with sales from January to July experiencing a decline of 33.6% compared to the same period last year. The decline occurred despite a significant increase in total battery EV sales in Europe, which rose by 33.6% in July. The sector currently accounts for approximately 15.6% of the European car market, trailing the 28.3% share of petrol vehicles and the 34.7% share of hybrid electric vehicles. Tesla’s updated Model Y, released earlier this year, has had a negligible effect on its sales figures, while competing models from European automakers, who have recently entered the electric vehicle market, have intensified the competitive landscape. Tesla’s brand image in Europe has experienced a decline, influenced by CEO Elon Musk’s endorsement of U.S. President Donald Trump and his connections with a German far-right party.

Japan’s leading trade negotiator, Ryosei Akazawa, has unexpectedly cancelled a trip to the United States, postponing discussions aimed at finalizing a $550 billion investment package proposed by Tokyo in return for alleviation on stringent tariffs. “It was found that there are points that need to be discussed at the administrative level during coordination with the American side.” “Therefore, the trip has been cancelled,” stated Japan’s government spokesperson Yoshimasa Hayashi during a press briefing on Thursday. In July, Washington and Tokyo reached an agreement to implement a reduced tariff of 15% on imports from Japan. This concession is contingent upon a package of U.S.-bound investments facilitated through government-backed loans and guarantees; however, the specifics of this arrangement have yet to be clarified. Trump has characterized the package as “our money to invest” and asserted that the U.S. would keep 90% of the profits generated. In contrast, Japanese officials have emphasized that investment decisions will hinge on their potential benefits to Japan.

Oil prices declined in response to anticipated reductions in U.S. fuel demand as the summer driving season approaches, despite a significant decrease in U.S. crude inventories. At 02:55 ET, Brent futures experienced a decline of 0.5%, settling at $66.91 per barrel, while U.S. West Texas Intermediate crude futures decreased by 0.9%, reaching $63.59 per barrel. Both contracts experienced an increase in the previous session following the report from the Energy Information Administration, which indicated that U.S. crude inventories decreased by 2.4 million barrels for the week ending August 22. This decline surpassed the analysts’ forecast of a 1.9 million barrel reduction. The decline indicated robust demand in anticipation of the forthcoming U.S. Labor Day extended weekend. However, this typically signifies the unofficial conclusion of the summer driving season and the beginning of diminished demand in the U.S.