June 16, 2024
Stock Market

Nasdaq futures jump 2% as Nvidia ignites global rally

US stock futures soared on Thursday as blockbuster earnings from AI darling Nvidia (NVDA) ignited a global rally in tech stocks, eclipsing concerns about the Federal Reserve’s caution over interest-rate cuts

Futures on the tech-heavy Nasdaq 100 (^NDX) shot up 2% on the heels of the chipmaker’s results, while S&P 500 (^GSPC) futures jumped about 1.2%. Gains for Dow Jones Industrial Average (^DJI) futures lagged, with a rise of 0.3%.

Stocks powered higher as Wall Street celebrated Nvidia’s blowout quarterly results, which beat sky-high expectations. That reassured investors about the strength of the AI mania that has lifted US stock gauges to record highs.

The chipmaker’s CEO said generative AI has “hit the tipping point” as it reported a 265% rise in revenue and laid out very upbeat guidance, a sign demand for AI hardware is booming. Nvidia shares climbed over 14% in premarket trading, after closing lower on Wednesday.

The bullish mood spread worldwide, with chip stock gains helping Japan’s Nikkei 225 (^N225) index to finally beat a record that’s stood since 1989. Similarly, techs boosted the pan-European Stoxx 600 (^STOXX) to a fresh all-time intraday high.

Amid the ebullience. assessment of the Fed’s next move appeared to be on the back burner. The central bank’s latest minutes showed most officials want to tread carefully on making rate cuts, seeing risks in moving too quickly.

Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards

Reports on weekly jobless claims and existing home sales due later could revive the debate over timing of cuts, given how closely investors have been tracking economic inputs for the Fed.

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