The S&P 500 futures rose early Thursday, led by a surge in Nvidia shares that resulted in record revenue and an optimistic guidance outlook for the chip giant. Nvidia’s total revenue skyrocketed 265% from the previous year, driven by its booming artificial intelligence business, and the company also forecasted another impressive revenue gain for the current quarter. This comes as a bullish sign for the market as AI enthusiasm has been fueling the impressive rally in Nvidia, as well as other Big Tech names, over the past year.
In addition to Nvidia’s success, the Nasdaq Composite could potentially rebound after experiencing a three-day losing streak, while the Federal Reserve’s minutes from its last meeting demonstrated caution about lowering interest rates too quickly. Investors are advised to remain observant of the potentially volatile rates market, while also anticipating weekly jobless claims data and existing home sales figures from January. Earnings reports from Moderna, Builders FirstSource, Live Nation, Booking Holdings, and Intuit will be released throughout the day, offering further insight for investors as the market sentiment remains positive due to Nvidia’s strong performance.
With a 0.75% climb in S&P 500 futures and a 1.48% gain in Nasdaq 100 futures, confidence has been boosted by Nvidia’s blowout quarter, signaling continued growth and potential for the tech-heavy index to regain its losses from earlier in the week. While the chipmaker’s success could influence the broader market, caution is advised due to potential volatility and unpredictability in the rates market. Nonetheless, the positive performance from Nvidia is a good indicator for the market, as investors await additional earnings reports and upcoming economic data.
