Before the Bell: Europe steadies as markets await Nvidia test

Back to the U.S., Nvidia's results, due after the U.S. close, will test whether the company's latest Rubin chips can drive another period of explosive growth. Analysts expect third-quarter revenue to have risen nearly 83% to about $104 billion.

European shares were set for modest gains on Wednesday ahead of Nvidia's NVDA.O earnings test, as falling oil prices on optimism over a reopening of the Strait of Hormuz supported sentiment and kept bond yields in check.

Euro STOXX 50 .STOXX50E and FTSE .FTSE futures advanced 0.2-0.3%, while DAX .GDAXI futures were unchanged. Wall Street futures were a touch lower but above overnight lows.

Investors will also be watching U.S. inflation data later in the session, ahead of Friday's speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium, with both events likely to shape interest rate expectations.

Markets are pricing in around a 38% chance of a Fed rate hike at September's meeting, according to CME's FedWatch tool.

European tech stocks could be pulled in different directions.

Stronger Asian chip stocks may support local peers, while a disappointing forecast from enterprise software provider Intuit could weigh on heavyweight SAP , which was also downgraded to "neutral" by UBS.