Dow Jones & Nasdaq 100 Stabilize with Nvidia Earnings, FOMC Ahead

US stock futures steadied during the Asian session on Wednesday, November 19, looking to snap their losing streaks. The Asian equity markets advanced in early trading, lifting sentiment ahead of crucial earnings and the highly anticipated FOMC Meeting Minutes.

Concerns about stock valuations have fueled the market sell-off amid fading bets on a December Fed rate cut. The absence of crucial US inflation and jobs data has left FOMC members to guide sentiment toward further policy easing. Fed speakers have raised concerns about elevated prices, suggesting voting members may prioritize taming inflation over supporting a cooling labor market.

Japanese Government Fiscal Plans Weaken the Yen

Falling bets on a December Fed rate cut collided with rising concerns about the Japanese government’s fiscal spending plans, sending USD/JPY to a nine-month high of 155.732 this week. Despite a modest pullback in early trading on Wednesday, November 19, the pair traded at 155.266. The weaker yen fuels the carry trade into risk assets.

Notably, USD/JPY gains lifted demand for Asian equities. The Nikkei, the Hang Seng Index, and Mainland China’s equity markets joined US stock futures in positive territory. The Nikkei led the gains, climbing 0.55%.

However, the gains were modest given investor caution ahead of key earnings results and the upcoming FOMC Meeting Minutes.

Nvidia Earnings Crucial For Market Momentum

While the Fed’s policy outlook remains key for near-term market trends, the US corporate earnings calendar will influence sentiment later on Wednesday. Nvidia (NVDA) will release its earnings and is likely to influence risk appetite.

Strong earnings are likely to revive the 2025 market rally driven by relief over the stock’s valuation. Traders will likely be wary ahead of the release, given the potential impact of disappointing earnings on sentiment.

US Stock Futures: FOMC Meeting Minutes in Focus

Futures posted gains during the Asian session after the previous day’s pullback. The Dow Jones E-mini rose 38 points, the Nasdaq 100 E-mini gained 13 points, while the S&P 500 E-mini climbed 5 points.

Later on Wednesday, the FOMC Meeting Minutes will fuel speculation about a December Fed rate cut. Hawkish minutes underscoring concerns about inflation would likely weigh on US stock futures. On the other hand, a greater focus on a cooling labor market could lift sentiment.

Ahead of today’s minutes, Several FOMC members have poured cold water on hopes for further monetary policy easing, citing high inflation.

According to the CME FedWatch Tool, the chances of a Fed December rate cut have fallen from 66.9% on November 11 to 48.9% on November 18.

While increasing focus on inflation would be a headwind for US equity futures, strong earnings from Nvidia could lift sentiment ahead of key US jobs data on Thursday, November 20.

Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500

Despite Wednesday’s early gains, US stock futures remained below their 50-day EMA, signaling a bearish near-term bias.

Near-term trends will hinge on the FOMC Meeting Minutes, Fed speakers, and Nvidia’s earnings. Key levels to monitor include:

Dow Jones

• Resistance: 46,500 50-day EMA (46,717), 47,000, 47,500, and the November 12 record high of 48,528.
• Support: 46,000, then 45,500.

Nasdaq 100

• Resistance: the 50-day EMA (24,963), 25,500, 26,000, then the October 30 record high of 26,399.
• Support: 24,500, then 24,000.

S&P 500

• Resistance: the 50-day EMA (6,713), October 30 record high of 6,954, then 7,000.
• Support: 6,500 and then 6,250.

Market Outlook: US Earnings and Fed Minutes Set the Tone

Markets face a pivotal test as corporate earnings and Fed Minutes clash, potentially triggering market volatility. The FOMC Meeting Minutes could provide insights into whether inflation or the labor market will have a greater influence on the December interest rate decision.

Meanwhile, Nvidia’s earnings could alleviate or exacerbate concerns about AI stock valuations, setting the stage for a choppy mid-week session.

Follow our live coverage and consult the economic calendar for real-time market updates.