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,
+0.52%
rose 29 points, or 0.6%, to 4476 -
Dow Jones Industrial Average futures
YM00,
-0.11%
dipped 6 points, or 0.0%, to 34516 -
Nasdaq 100 futures
NQ00,
+1.15%
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,
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,
Advanced Micro Devices
AMD,
and OpenAI investor Microsoft
MSFT,
rose in premarket action.
Dow Jones Industrial Average futures underperformed as shares in Boeing
BA,
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.
