Traders work on the floor of the New York Stock Exchange on May 16, 2024.
Brendan Mcdermid | Reuters
Nasdaq-100 futures rose Thursday as Wall Street assessed the latest quarterly results from market bellwether Nvidia.
Nasdaq-100 futures jumped 0.9%, while S&P 500 futures added 0.6%. Futures tied to the Dow Jones Industrial Average rose 43 points, or 0.1%.
Chipmaker and artificial intelligence darling Nvidia added 6% in extended trading, sending shares above $1,000, after posting stronger-than-expected fiscal first-quarter results and announcing a 10-for-1 stock split.
Nvidia’s fiscal second-quarter revenue guidance of about $28 billion also beat a StreetAccount forecast of $36.2 billion — a sign the company doesn’t see its momentum slowing.
Snowflake added 4% on a revenue beat.
Nvidia’s results have been a focal point for Wall Street, as traders hoped for signs that the excitement around AI is not waning. With its $2.3 trillion market cap, Nvidia also has considerable sway over the broad S&P 500. The stock, alongside AI and megacap technology peers, has powered the market’s gains into 2024, with Wolfe Research’s Chris Senyek noting that a beat would be a “key tailwind” for equities overall.
“Even in the face of huge expectations, the company once again stepped up and delivered,” said Ryan Detrick, chief market strategist at Carson Group. “The always important data center revenue was strong, while future revenue was also impressive. Bottom line, the bar was high and cleared it once again.”
Stocks dropped during Wednesday’s session after minutes from the Federal Reserve’s May meeting fueled concerns over sticky inflation and fear that the central bank may push off cuts. The 30-stock Dow fell 0.51%, for its worst session in May. The S&P 500 dipped 0.27% and the Nasdaq Composite slid 0.18%.
The final stage of the first-quarter reporting season continues Thursday with results from Ralph Lauren, BJ’s Wholesale, Workday and more. On the economic front, investors await weekly jobless claims and new home sales data for April.