BENGALURU, INDIA (AP) – Investors are closely monitoring the U.S. stock market as the S&P 500, Dow, and Nasdaq futures show minimal movement on Thursday. The upcoming data on the labor market’s strength is eagerly anticipated, particularly after a recent tech rally that pushed the S&P 500 and Nasdaq to record highs.
Wednesday’s tech surge, driven largely by megacap tech stocks, has fueled optimism around the sector. Notably, chip maker Nvidia saw a 1.5% increase, surpassing a market valuation of $3 trillion. This surge positions Nvidia as the world’s second most valuable company, overtaking Apple.
The recent rally on Wall Street has been largely influenced by gains in Nvidia and other AI-related companies. Despite concerns about rising U.S. interest rates, Nvidia’s performance alone has accounted for a significant portion of the S&P 500’s gains this year.
Analysts from UBS predict that the semiconductor-led AI rally will expand in the coming months, highlighting key AI segments such as GPUs, custom chips, and foundries. Meanwhile, traders are closely monitoring the labor market data, particularly the impending nonfarm payrolls report, which could impact the likelihood of a September rate reduction.
Market indicators suggest a probable September rate cut, with traders pricing in multiple rate cuts for the year. However, there remains uncertainty as to whether the Federal Reserve will opt for one or none at all. Data on weekly jobless claims and April’s international trade figures are expected to provide further insights into the state of the U.S. economy.
In premarket trading, Dow e-minis experienced a slight decrease, while S&P 500 e-minis showed minimal movement and Nasdaq 100 e-minis saw a slight uptick. Among key performers, Lululemon Athletica boasted an 8.2% increase after surpassing first-quarter profit expectations. Conversely, U.S.-listed shares of Nio saw a 7.2% drop after reporting a quarterly net loss, despite expectations of a significant increase in EV deliveries.
Victoria’s Secret reported lower first-quarter profit and revenue, leading to a 1.8% decline in its shares. Additionally, Five Below reduced its annual net-sales forecast, causing a 15.8% slump in its stock. On the other hand, Sealed Air saw a 1.4% rise following an upgrade from Mizuho brokerage.
As the market continues to react to new data and earnings reports, investors remain vigilant in navigating the ever-changing landscape of the global economy.