Gotrade News - Wall Street futures steadied on Tuesday as investors awaited Nvidia (NVDA) earnings due Wednesday. S&P 500 futures hovered near 7,425.50 while Nasdaq 100 futures slipped 0.1% to 29,070.75.
The cautious tone followed a tech-led selloff that pressured semiconductor stocks across the board. Rising oil prices and Middle East tensions added complexity to the Federal Reserve's rate-cut path.
Key Takeaways
- Nvidia shares fell about 1.3% on Monday ahead of Wednesday's closely watched quarterly earnings report.
- Blackstone and Google launched a $5 billion joint venture to build a TPU cloud with 500 MW capacity by 2027.
- Nvidia-backed Nebius Group posted 684% revenue growth in Q1, fueling a 400% one-year rally.
According to Investing.com, the Nasdaq fell 0.5% and the S&P 500 slipped 0.1% in the prior session. Dow futures eased 0.1% to 49,742.0 as traders trimmed exposure ahead of the Nvidia print.
Tech and semiconductor names faced renewed pressure as rising oil costs threatened to keep inflation sticky. That backdrop could complicate the Fed's rate-cut timeline through the second half of 2026.
Google And Blackstone Forge TPU Cloud Pact
As reported by Business Wire, Blackstone (BX) and Alphabet (GOOGL) unveiled a US-based joint venture. The deal pairs data center capacity with Google Cloud's TPUs as compute-as-a-service.
Blackstone is committing $5 billion in initial equity to the partnership. The venture plans to bring 500 megawatts of capacity online during 2027.
Benjamin Treynor Sloss will lead the joint venture as chief executive officer. Blackstone President Jon Gray called the deal a generational opportunity to deploy capital at scale.
Thomas Kurian, Google Cloud's chief executive, said TPUs are optimized for efficiency in the AI era. Blackstone, which manages over $1.3 trillion in assets, signals deep institutional conviction in AI infrastructure demand.
The venture represents a direct challenge to Nvidia's accelerator dominance in hyperscaler workloads. It also highlights how alternative silicon paths are attracting serious private capital.
Nebius Rally Tests AI Cloud Valuations
Per The Motley Fool, Nebius Group has surged more than 400% over the past year. The Nasdaq-listed AI cloud provider counts Nvidia as a major equity investor with a $2 billion stake.
Nebius reported first-quarter revenue of $399 million, an increase of 684% year over year. Core AI cloud revenue jumped 841% to $390 million during the same period.
The company's annualized revenue run rate now stands at $1.92 billion. Adjusted EBITDA reached $130 million, with AI cloud margins near 45%.
Nebius secured a Meta agreement worth up to $27 billion across five years. A separate Microsoft deal sits in the $17.4 billion to $19.4 billion range.
Management guided 2026 capital expenditures between $20 billion and $25 billion. Analysts caution the stock looks priced for perfection given execution risks ahead.
The Nvidia print on Wednesday will set the tone for AI capex sentiment broadly. Strong commentary on data center demand could reignite the entire semiconductor complex.
