Nvidia Reports Unprecedented Earnings, Yet Stock Declines

Stock Market Today (Aug. 19, 2026): Nasdaq futures edge lower on rising oil prices, chip selloff

 On Tuesday, the benchmark U.S. 30-year Treasury yield climbed to 5.33%, reaching its highest point since April 2007, before retreating below 5.3%. Global government bonds found stability on Wednesday after a steep selloff, preceding the release of the Federal Reserve's July meeting minutes, which are set to be unveiled at 2 p.m. EDT, as reported by the Wall Street Journal. President Donald Trump mentioned earlier that discussions with Iran are currently not underway, and no new talks are planned, nearly six months into the conflict involving the U.S., Israel, and Iran. In a separate move late Tuesday, Trump halted plans to apply 50% tariffs on certain Canadian imports just before these measures were due to be enforced at midnight. On Tuesday, the stock market closed lower, affected by a decline in chipmakers and rising bond yields. Kyle Rodda, a senior financial market analyst at Capital.com, noted, "Chip stocks suffered as elevated bond yields put pressure on asset prices worldwide, with investors growing more apprehensive about increased long-term rates." The movement in yields was relatively mild and partly reversed during the U.S. trading session. However, cross-asset price movements indicate that significant structural tensions in the markets are resurfacing.

 US stocks closed lower on Wednesday following the Federal Reserve’s interest rate decision

 Current situation: US stocks ended the day down on Wednesday after the Federal Reserve announced its decision on interest rates.

Recent events: A renewed selloff in chipmaker stocks led to a decline of over 2% in the Nasdaq 100.

Earlier today, Nasdaq 100 futures rose, suggesting a positive opening for the index as investors consider earnings reports from Microsoft and Meta that were released after the market closed.

 The Nasdaq 100 fell by 2% after the Federal Reserve announced its rate decision

Why it matters: The Federal Reserve has maintained its benchmark interest rate between 3.50% and 3.75% following a two-day meeting that concluded yesterday. Although this decision met market expectations, three members of the Federal Open Market Committee (FOMC) advocated for a 25-basis point rate increase.

The Nasdaq 100 has dropped 11% since its record high in June, as investors continue to realize profits and short AI stocks. Chipmakers Micron and SanDisk saw declines of about 10% and 7%, respectively, on Wednesday, impacting the tech-centric index.

In after-hours trading, Microsoft shares surged approximately 9% after the company posted better-than-anticipated fourth-quarter results, driven by its strong performance in cloud computing and AI sectors.

Microsoft reported quarterly revenue of $90.01 billion, marking an 18% rise compared to the previous year, and exceeding consensus predictions of $87.62 billion. Profits stood at $4.74 per share, surpassing Wall Street's forecast of $4.24 per share.

Meta Platforms experienced a share drop of over 6%, despite reporting higher-than-expected revenues. Revenues reached $60.80 billion, above the anticipated $59.50 billion, yet the stock was penalized as adjusted earnings of $6.18 per share fell significantly short of expectations set at $7.13 per share.

The Dow Jones index fell by 1,153.18 points, or 2.19%, closing at 51,594.14 on Wednesday. Meanwhile, the S&P 500 decreased by 1.52% to 7,316.15, and the Nasdaq 100 contracted by 2.06% to end at 27,192.31.

This morning, Nasdaq 100 futures increased by more than 1%, indicating a robust opening on Wall Street today.

Nasdaq 100

What to watch: Investors will be closely monitoring earnings reports from tech giants Apple and Amazon after US markets close today. Mastercard and Bristol-Myers earnings will also attract attention.

Data releases include initial jobless claims, GDP growth rate, and core PCE price index from the US at 1630 UAE Time today. The number of people filing for jobless benefits in the US, which decreased by 22,000 to 187,000 in the week leading to July 18, is projected to rise to 200,000 this week. The core PCE price index, preferred by the Fed as an inflation measure, increased by 3.4% year-over-year in May and is expected to grow by 3.3% in June. Analysts predict the US economy will expand by 2.2% in the second quarter, up from the previous quarter's growth of 2.1%. 

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