U.S. stock futures surged strongly, supported by Nvidia’s earnings, which came in well above expectations. The results boosted risk appetite and eased concerns over stretched valuations in the tech sector. Dow Jones futures posted notable gains, while S&P 500 and Nasdaq futures jumped sharply at the start of Thursday’s session. This came after all three major U.S. indices closed higher on Wednesday, ending a four-day losing streak, though they remain on track for a negative week.
The rally was driven by a sharp pre market jump in Nvidia’s stock after the company reported robust quarterly results and stronger-than-expected guidance, reaffirming solid demand for its advanced chips. CEO Jensen Huang stated that AI-driven demand continues to expand into sectors beyond data centers and hyperscalers, dismissing concerns about an AI valuation bubble. He also noted that Nvidia’s investment in OpenAI aims to broaden the company’s ecosystem and support long-term growth. Nvidia’s performance lifted the broader technology sector, which had faced significant pressure in recent sessions.
Markets are also awaiting earnings from other major companies, most notably Walmart, which is expected to post revenue growth of around 4.7% compared to last year. This comes amid mixed results in the retail sector this week, with weaker than expected earnings from Target and Home Depot, and stronger results from Lowe’s.
At the same time, investor attention is turning toward September’s nonfarm payrolls report, with expectations of 50,000 new jobs compared with 22,000 in August. The unemployment rate is projected to remain near a four year high at 4.3%. However, the delayed release of the data due to the extended government shutdown may reduce its impact on market sentiment. Minutes from the Federal Reserve’s October meeting also showed division among policymakers regarding the next steps, while traders have reduced their expectations of a December rate cut, with odds standing near 24%.
On the commodities front, oil prices rose on Thursday and were heading for weekly gains, supported by a larger-than-expected drawdown in U.S. crude inventories. Brent and WTI crude climbed around 1% as the U.S. deadline of November 21 approaches for companies to end dealings with Rosneft and Lukoil. This rise came despite a sharp drop in the previous session, following reports that Washington urged Kyiv to consider a framework for ending the war with Russia.
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