Nvidia’s Mixed Earnings Report Shakes US Markets

NEW YORK, NY – Nvidia‘s earnings report on Thursday, August 28, 2025, led to a decline in after-hours trading. The company announced total revenue of $46.74 billion, reflecting a 56% increase year-on-year, surpassing Wall Street‘s expectations.

Despite the positive revenue results, Nvidia’s shares dropped by 3.14% to $175.9 after hours. Analysts pointed out that while data center revenue rose to $41.1 billion, it did not meet expectations. David Scutt, a market analyst at StoneX, commented, “Nvidia down afterhours because it sets a modest revenue forecast so it can beat it by +$2b in Q3.” This cautious guidance appears to have unsettled investors.

The Nasdaq 100 E-mini decreased by 50 points, while the S&P 500 E-mini fell by 4 points. However, the Dow Jones E-mini rose by 80 points, buoyed by increasing expectations that the Federal Reserve may adopt a more dovish policy. The CME FedWatch Tool indicated the probability of a September Fed rate cut rose to 88.7%.

John Williams, President of the Federal Reserve Bank of New York, remarked on the Fed’s policy decisions, stating, “Every meeting is, from my perspective, live. Risks are more in balance. We are going to just have to see how the data play out.” This comment reflects a careful approach to upcoming economic indicators.

Market analysts are now closely watching US GDP and jobless claims data set to be released later today. Economists expect initial jobless claims to drop, which could influence expectations for future Fed rate cuts. Meanwhile, data showed the US economy expanded by 3.1% quarter-on-quarter in Q2.

Asian markets showed mixed results following Nvidia’s report. The Hang Seng Tech Index dropped by 1.04%, while China’s CSI 300 and Shanghai Composite Index saw modest gains. Investors seemed to overlook news of Mexico‘s plans to raise tariffs on Chinese goods, as by expectations of stimulus from Beijing continued to lift sentiment.

Looking ahead, economic data from both Japan and China will likely impact global market sentiment. Analysts anticipate heightened volatility in US markets as new data emerges in the coming days.