U.S. Stock Futures Surge

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Stellar Earnings Report from Nvidia Boosts Technology Stocks

Investors on Wall Street are eagerly eyeing fresh record highs as U.S. stock-index futures surge following another blowout earnings report from Nvidia, which has significantly lifted technology stocks.

Market Performance

  • The Dow Jones Industrial Average (DJIA) saw a rise of 48 points, or 0.13%, reaching 38,612.
  • The S&P 500 (SPX) increased by 6 points, or 0.13%, hitting 4,982.
  • The Nasdaq Composite (COMP) experienced a slight drop of 50 points, or 0.32%, settling at 15,581.

Investor Confidence Restored

Earlier in the week, the equity rally had faced a bit of hesitation as investors feared that the record close of the S&P 500 index at 5,029.73 last Friday could be in jeopardy if Nvidia failed to meet expectations. However, Nvidia’s performance exceeded the already elevated forecasts of analysts, boosting investor confidence and reigniting optimism in the market.

Global Impact

Nvidia’s impressive results have not only set the S&P 500 on track for a new peak but have also contributed to significant gains in Japan and Europe, propelling their benchmark equity indices to new record levels.

Expert Insights

Commenting on the situation, Russ Mould, investment director at AJ Bell, stated, “The big fear in recent days was that a disappointing quarter from Nvidia would lead to a loss of investor confidence in the tech space and that could cause contagion on the markets. Crisis has been averted after Nvidia smashed expectations with its latest results…a large beat on both earnings and sales has put a new rocket under the stock.”

Market Update: Nvidia Leads Pre-market Surge

Nvidia shares surged more than 14% in premarket trading, propelling stocks such as Arm Holdings (ARM +1.33%) and Super Micro Computer (SMCI -6.78%) along with it.

Analysts’ Insight

Senior analyst at Swissquote Bank, Ipek Ozkardeskaya, expressed confidence in the AI rally, stating, “So, there you go, ladies and gentlemen, a potential misstep from Nvidia that would hammer the AI rally has simply not come. What now? The rally will probably continue.”

Julian Emanuel, a strategist at Evercore ISI, succinctly summarized the sentiment by stating, “FOMO remains bid.”

Upcoming Earnings Reports

In addition to Nvidia, other companies are gearing up to release their earnings reports. Companies like Moderna (MRNA +0.69%), Newmont (NEM +0.72%), and Wayfair (W -3.37%) are set to announce results before Thursday’s opening bell. Following the market close, Carvana (CVNA -4.65%), Intuit (INTU -1.18%), and Live Nation Entertainment (LYV -0.92%) will present their figures.

Economic Indicators to Watch

Investors will also keep an eye on key U.S. economic updates on Thursday. These updates include weekly initial jobless benefit claims at 8:30 a.m. Eastern, S&P flash services and manufacturing PMIs for February at 9:45 a.m., and January existing home sales at 10 a.m.

Federal Reserve Speeches

Furthermore, there are several Federal Reserve officials scheduled to speak on Thursday as the 10-year Treasury yield BX:TMUBMUSD10Y hovers around 4.307%, which is near the top of its 12-week range. Fed Vice Chair Philip Jefferson will make remarks at 10 a.m., Philadelphia Fed President Patrick Harker is scheduled to talk at 3:15 p.m., and Fed Gov. Lisa Cook and Minneapolis Fed President Neel Kashkari both have speeches planned for 5 p.m.

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