European stocks rebound as traders eye Nvidia earnings

European markets are heading for a higher open Wednesday as traders gear up for a quarterly earnings report from chipmaker Nvidia.

The Nasdaq-listed stock has become a bellwether for the global technology sector, particularly regarding the progress of the artificial intelligence boom, as its major corporate customers include Microsoft, Google, Meta and Amazon.

Its value has soared in recent years, giving it the biggest weighting in the S&P 500 and an outsized influence on U.S. market performance. The company will report after U.S. markets close on Wednesday.

France's CAC 40 index is set to record a slight rebound following a 1.6% decline on Tuesday, according to IG futures. Investors were spooked by the potential for a fresh period of political instability and inability to pass a 2026 budget after opposition parties said they would not back Prime Minister Francois Bayrou in a confidence vote next month.

The pan-European Stoxx 600 has fallen in both of the last two sessions. However, it's been a relatively strong month overall for the regional index, which has gained nearly 1.5% for its best month since May's global equity rally.

U.S. futures were slightly higher in the early hours, as investors looked past President Donald Trump's unprecedented move earlier in the week to fire Federal Reserve Governor Lisa Cook from the central bank's board.

Asia-Pacific markets traded mixed on Wednesday, after data showed China's industrial profits slipped 1.5% year on year in July, a notable recovery following months of steeper declines. 

In India, where markets are closed for a holiday, steep U.S. tariffs totaling 50% are set to take effect.

— CNBC's Lee Ying Shan contributed to this story.