Nasdaq Futures Soar on Impressive Nvidia Earnings; Dow Futures Slip

Early on Thursday, U.S. stock index futures displayed upward momentum, with Nasdaq futures leading the way, driven by Nvidia’s impressive quarterly earnings performance. Conversely, Dow futures experienced a dip due to a decline in Boeing shares.

Here’s a snapshot of how stock-index futures are trading:

  • S&P 500 futures (ES00) rose by 17.75 points, or 0.4%, reaching 4464.
  • Dow Jones Industrial Average futures (YM00) declined by 61 points, or 0.2%, reaching 34,463.
  • Nasdaq 100 futures (NQ00) gained 143 points, or 0.9%, reaching 15,338.

In Wednesday’s trading, the Dow Jones Industrial Average increased by 184 points, or 0.54%, reaching 34,473. The S&P 500 showed a rise of 48 points, or 1.1%, reaching 4436, and the Nasdaq Composite gained 215 points, or 1.59%, reaching 13,721.

Key factors influencing the market:

  • Nvidia’s outstanding earnings, particularly its strong sales and optimistic third-quarter guidance, contributed to the broader market’s boost. This success set the stage for a significant Nasdaq rebound upon opening. Analysts noted that Nvidia’s performance has positive implications for the wider technology sector.
  • Earnings from Nvidia have a ripple effect, lifting the mood across the market. Palantir Technologies (PLTR), Advanced Micro Devices (AMD), and Microsoft (MSFT) – an investor in OpenAI – saw premarket gains.
  • Dow Jones Industrial Average futures lagged as Boeing (BA) shares dropped nearly 2% due to reports of a new defect identified in the 737 Max aircraft.
  • Falling implied borrowing costs also played a role in boosting market sentiment. The 10-year U.S. Treasury yield, which recently hit a nearly 16-year high of 4.36%, pulled back to 4.178%. Economic activity surveys in Europe and the U.S., released on Wednesday, pointed toward a weakening global economy.
  • The rally in U.S. stocks and the retreat of Treasury yields followed disappointing economic reports, reflecting the market’s tendency to interpret bad news as potential for Fed rate pause, according to Stephen Innes, Managing Partner at SPI Asset Management.

As traders keep an eye on the Jackson Hole central bankers’ economic policy symposium, which begins on Thursday, attention is drawn to the speech expected from Fed Chair Jerome Powell on Friday.

Additional U.S. economic data includes weekly jobless benefit claims numbers, showing a decrease of 10,000 claims to a three-week low of 230,000. This suggests ongoing strength in the labor market. Durable-goods orders data for July revealed a 0.5% rise, excluding transportation and specific sectors.

Companies in focus:

  • Nvidia Corp. (NVDA) witnessed an 8% jump in premarket trade after reporting a 141% increase in data-center sales and record results. This positive performance impacted AI-rival Advanced Micro Devices Inc. (AMD), Taiwan Semiconductor Manufacturing Co. (TSM), and microchip equipment maker ASML Holding (ASML), with gains of 3% and 2%, respectively.
  • Boeing (BA) saw its stock decline by 2%, along with Spirit AeroSystems (SPR) shares falling by 4% due to an issue with fastener holes on Boeing 737 Max aircraft.
  • U.S. Steel (X) stock fell by 4% to $30.10, continuing its decline from Wednesday after Esmark withdrew its offer for the company, which is currently pursued by Cleveland-Cliffs (CLF).

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