Source: Sharecast
The FTSE 100 was called to open around 35 points higher.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Nvidia now accounts for around 8% of the S&P 500 and is the flagship of the AI theme, so its results - or the market’s reaction to them - could be market-moving, even trend-reversing.
"The company is expected to deliver around $46bn in revenue, largely driven by AI spending from giants like Microsoft and Meta, which account for about 40% of sales. Margins could benefit from recent export ban exemptions granted by the Trump administration. But the China story remains uncertain: Beijing is now pressuring domestic firms to buy local chips, which could erode Nvidia’s Chinese revenue share (currently about 13%).
"The Middle East, however, has emerged as a new growth region. With Nvidia trading on a lofty PE of circa 58, strong growth is essential to justify valuations. Options pricing implies a 6% move in Nvidia shares, which could translate into a circa 0.8% swing in the S&P 500."
She added: "Even if Nvidia beats expectations, investors might use strength as an opportunity to take profits, which could accelerate a correction."
In UK corporate news, sports fashion retailer JD Sports said it expects FY26 pre-tax profits to meet current market expectations despite seeing group sales fall in the six months ended 2 August.
JD Sports said first-half group sales were down 2.5% on a like-for-like basis at £5.94bn, with North American sales down 3.8% at £2.31bn, UK sales dropping by 3.3% to £1.46bn, Asia sales slipping 2.4% to £238m and European sales contracting 0.4% to £1.92bn.
Hochschild Mining cut its full-year production target after problems at its Mara Rosa operation due to weather and contractor issues.
The company now expects to produce 291,000- 319,000 gold equivalent ounces, down from a prior forecast of 350,000-378,000 ounces. Mara Rosa’s production target was revised down to 35,000-45,000 ounces from 94,000-104,000.
Hochschild’s interim adjusted core profit rose 27% to $225m on the back of soaring gold prices due to US President Donald Trump’s global tariff war as investors sought a safe haven for their cash.