Nasdaq Futures Stagnate Amid Nvidia's China Trade Challenges

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.)