Traders on the floor of the New York Stock Exchange on August 4, 2022.
Source: New York Stock Exchange
S&P 500 futures rose early Thursday, boosted by a jump in Nvidia stock as the chip giant posted record revenue and issued upbeat guidance.
S&P 500 Futures rose 0.75% and Nasdaq 100 Futures gained 1.48%. Futures linked to Dow Jones Industrial Average added 47 points, or 0.12%.
NVIDIA Shares rose 9% in after-hours trading after the chip company said Total revenue increased by a whopping 265% from the previous year, driven by its burgeoning artificial intelligence business. Nvidia, which has become the fifth-largest company in the United States by market capitalization, also forecast another stellar revenue increase for the current quarter, even in the face of lofty expectations for massive growth.
Enthusiasm for AI has fueled Nvidia's astonishing rally, along with other big tech names, over the past year. The chipmaker's successful quarter could further boost confidence in the space that has benefited the broader market.
"The bears tried to hit NVDA and sell the news, but there's not much to dislike in this report," said David Russell, global head of market strategy at TradeStation. "This company potentially has a lot of growth ahead of it and years of investment in AI are expected."
He Nasdaq Composite could see a rebound from its three-day losing streak on Thursday. So far this week, the technology index has lost more than 1%.
On Wednesday, Minutes from the last meeting of the Federal Reserve. showed that central bank officials expressed caution about cutting interest rates too quickly and stressed the importance of "carefully evaluating" incoming data to judge whether inflation is sustainably falling to 2%.
"Investors should be aware that the path to disinflation will likely be bumpy, creating volatility in the rates market," said Jeffrey Roach, chief economist at LPL Financial.
On Thursday, investors will be watching weekly jobless claims data and existing home sales figures for January.
Companies that reported earnings on Thursday include Modern and Builders first source in the morning, followed by living nation, Stock Reserves and To sense after closing.
