Inflation Report in Focus as Fed Leadership Questions Linger
Markets are modestly higher as investors digest corporate earnings while turning their attention to tomorrow's producer inflation report, a key leading indicator for broader inflation trends. The backdrop remains complex, with tariff uncertainty resurfacing after the recent Supreme Court order and a revised framework from the Trump administration, alongside muted job growth, rising unemployment risks, slowing GDP, and growing uncertainty around the path of rate cuts.
Nvidia Delivers AI-Fueled Blowout as Agentic Era Accelerates
Nvidia (NVDA) rose modestly in premarket trading after delivering a blowout quarter, with revenue up +73% to $68.1B and EPS of $1.62, driven by surging data center demand from AI. Gross margins held at ~75%, and Q1 revenue guidance of $78B topped consensus despite no China data center contribution. Management emphasized the rapid emergence of "agentic AI" as a major driver of future compute demand and confirmed it is finalizing a potential investment and partnership with OpenAI, reportedly below the previously discussed $100B level.
Salesforce Tops Estimates, Boosts Buybacks Amid AI Growth
Salesforce (CRM) is down slightly in premarket trading despite a strong Q4, with EPS of $3.81 topping expectations and revenue rising +12% YoY to $11.2B. Guidance for Q1 came in ahead of estimates, while full-year FY27 revenue was in line and EPS slightly below consensus. The company highlighted rapid momentum in Agentforce, with ARR up +169%. While some investors focused on tempered long-term guidance, management and analysts pointed to accelerating AI-driven demand, resilient margins, and expanded capital returns, including a dividend hike and a $50B buyback authorization.
Quantum Momentum Builds as IonQ Jumps on Triple-Digit Growth
IonQ (IONQ) is surging, up more than +14% in premarket trading after stronger-than-expected Q4 results, with revenue soaring +429% YoY to $61.9M, well above estimates. The company exceeded its revenue guidance by a wide margin and finished the year at $130M in sales. Management highlighted momentum from its shift to a full-stack quantum platform model and guided for 2026 revenue of $225–$245M, ahead of consensus expectations, signaling continued top-line acceleration.
The Trade Desk Slides on Soft Outlook
The Trade Desk (TTD) is down more than -14% in premarket trading as investors react to a softer-than-expected Q1 2026 outlook, overshadowing a solid Q4 beat. Q4 revenue rose +14% to $847M, topping estimates, while EPS of $0.59 also exceeded expectations. For the full year, revenue climbed +18%, though net margins compressed and stock-based compensation remained elevated at $491M. A cautious Q1 guide, lack of full-year outlook, and ongoing margin pressure appeared to drive the sharp selloff despite aggressive share buybacks.
