Nasdaq futures jump after Nvidia’s blowout quarter


U.S. stock futures jump early Thursday as sparking Nvidia results boost risk appetite.

How are stock-index futures trading

  • S&P 500 futures ES00, +0.43% rose 29 points, or 0.6%, to 4476
  • Dow Jones Industrial Average futures YM00, -0.19% dipped 6 points, or 0.0%, to 34516
  • Nasdaq 100 futures NQ00, +1.07% added 210 points, or 1.4%, to 15405

On Wednesday, the Dow Jones Industrial Average DJIA rose 184 points, or 0.54%, to 34473, the S&P 500 SPX increased 48 points, or 1.1%, to 4436, and the Nasdaq Composite COMP gained 215 points, or 1.59%, to 13721.

What’s driving markets

Well-received earnings from AI chipmaker Nvidia NVDA, +3.17% has triggered a bout of risk-on activity across markets. Futures indicate the tech-heavy Nasdaq 100 will open up 1.4% as Nvidia’s stock jumps 8% in premarket action.

“The market expectations were sky-high, the results went to the moon,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “The Nvidia news has [had] a boosting effect on technology stocks…by confirming that all the talk around the AI-craze was not empty, after all.”

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, agreed: “Nvidia smashing the forecast ceiling has also lifted the mood elsewhere.”

Shares of Palantir Technologies PLTR, +4.29%, Advanced Micro Devices AMD, +3.57% and OpenAI investor Microsoft MSFT, +1.41% rose in premarket action.

Dow Jones Industrial Average futures underperformed as shares in Boeing BA, -0.65% fell nearly 2% on news of a defect identified on the 737 Max aircraft.

Falling implied borrowing costs were also helping the mood Thursday. The benchmark 10-year U.S. Treasury yield, which earlier this week hit a near 16-year peak of 4.36% has pulled back to 4.178% after survey’s of economic activity in Europe and the U.S., released Wednesday, suggested a deteriorating global economy.

“The rally in U.S. stocks and the retreat of Treasury yields followed underwhelming economic reports as the market fell back into the ‘bad news is a good’ mode,” said Stephen Innes, managing partner at SPI Asset Management.

“But encouragingly for equity investors, the weaker U.S. data lens more weight to the argument for the Federal Reserve to pause its interest rate hikes,” Innes added.

With that in mind traders will have an eye on the Jackson Hole economic policy symposium, which begins Thursday, and which on Friday is expected to deliver a speech by Fed Chair Jerome Powell.

U.S. economic updates set for release on Thursday include the weekly initial jobless claims and durable goods orders for July, both due at 8;30 a.m. Eastern.

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