US pre-market update: Why is Nvidia share price falling? Upstart & Novavax in focus

How will market open today?

• Stock futures indicate a negative opening for US stock market.
• Upstart stock fell after it missed both profit and revenue expectations for the June quarter.
• Workhorse, Ralph Lauren, Coinbase, Spirit Airlines, Roblox to report earnings on Tuesday.
• Novavax fell 30% in premarket after slashing revenue guidance due to poor demand for Covid vaccines.
• On the economic front investors await for July inflation data, releasing on Wednesday.

Nvidia warns of lower revenue

• Nvidia stock tanked after its June quarter revenue came in at $6.7 billion, down 19% on-quarter & below $8.1 billion expected.
• This was primarily due to weaker gaming revenue, down 33% on-year as consumers weigh on discretionary purchases.
• Chipmakers have been struggling with supply chain problems amid Ukraine war and recent covid curbs in China.
• Last month, Xbox maker Microsoft also reported decline in gaming revenue and PlayStation maker Sony has cut its forecast.
• As per JP Morgan, Nvidia’s gaming slowdown likely includes chips they sell to crypto market, making the slowdown more significant.