Dow Jones futures gain as markets anticipate stronger earnings from Nvidia

• Dow Jones futures post modest gains ahead of Nvidia's upcoming earnings report.
• Analysts expect Nvidia to post $1.25 EPS on $54.9 billion revenue, a 56% annual increase.
• Thursday's September Nonfarm Payrolls are awaited to gain fresh guidance on the Fed outlook.

Dow Jones futures edge up 0.04% to trade near 46,200 during European hours on Wednesday, ahead of the United States (US) market open. The S&P 500 futures and Nasdaq 100 futures are also slightly higher, rising 0.09% and 0.06% to around 6,650 and 24,600, respectively, at the time of writing.

US index futures gain little ahead of Nvidia's upcoming earnings report, which could impact the strength and sustainability of the AI rally as markets grow increasingly worried about bubble risks. Analysts expect earnings per share of $1.25 on revenue of $54.9 billion, representing a 56% increase from a year earlier. They are also projecting guidance of $61.44 billion for the next quarter, according to a news report from CNBC.

Moreover, results from major retailers TJX Companies, Lowe's, and Target will also be eyed for indications of consumer spending trends. Quarterly updates from industrial giant Deere & Company and cybersecurity firm Palo Alto Networks will also draw close attention.

Wall Street closed lower on Tuesday's regular session, with the Dow Jones and S&P 500 falling 1.07% and 0.83% for a fourth consecutive session of losses. The tech-heavy Nasdaq 100 dropped 1.21% amid concerns over stretched artificial intelligence valuations. AI-related stocks also slid, including Nvidia, Microsoft, AMD, Palantir, and Micron Technology.

US stocks may face challenges due to the diminishing likelihood of US Federal Reserve (Fed) rate cut in December. The CME FedWatch Tool indicated that markets are now pricing in a 49% odds of the Fed delivering a 25-basis-point rate cut at its December meeting, down from 63% probability that markets priced a week ago. Traders will likely observe the highly anticipated September Nonfarm Payrolls data due on Thursday, to gain fresh impetus on Fed policy outlook.