“Positive Nvidia Surge Sparks Nasdaq Futures as Dow Weighed Down by Debt-Ceiling Debacle”

Mixed Trading in U.S. Stock Index Futures as Nvidia Results Impact Tech Sector

U.S. stock index futures were mixed on Thursday as Nasdaq saw a boost from Nvidia’s positive results in the tech sector, while concerns over debt ceiling continue to weigh on the Dow Jones Industrial Average.

Trading in Stock-Index Futures

S&P 500 futures ES00, +0.56% increased 21 points, or 0.5%, to 4147. Dow Jones Industrial Average futures YM00, -0.32%, dropped 107 points, or 0.3%, to 32747. Nasdaq 100 futures NQ00, +1.90% surged 225 points, or 1.6%, to 13875.

Wednesday’s Trading and Current Market Drivers

On Wednesday, Dow Jones Industrial Average DJIA, -0.77% fell 256 points, or 0.77%, to 32800, the S&P 500 SPX, -0.73% declined 30 points, or 0.73%, to 4115, and the Nasdaq Composite COMP, -0.61% dropped 76 points, or 0.61%, to 12484.

The looming deadline for debt-ceiling creates anxiety among traders, which is offset by the positive results for artificial intelligence (AI) technology within the tech sector. Chipmaker Nvidia’s positive earnings from Wednesday results in a clear separation between the Nasdaq and the Dow.

Ratings agency Fitch has warned about a possible downgrade of the US Senator’s credit rating if there is no agreement reached to extend the debt-ceiling, as the US government may technically default at the start of June. The availability of AI technology is believed to be the next successful period of growth for tech businesses, boosted by Nvidia’s positive outcomes.

Leading Semiconductors to Show Strength

Expectations for further growth are high among the semiconductor sector, with other top companies such as CS.ai Inc. AI, +2.54% and Advanced Micro Devices AMD, +0.14% seeing positive impacts of Nvidia’s success. Semiconductors have good growth potential compared to the broader technology as it may break out to new all-time highs this week on a ratio basis.

Economic Updates and Fed Officials

Economic updates are set for release on Thursday, including weekly initial jobless benefit claims data, and the second reading of first-quarter GDP, which starts at 8:30 a.m. Eastern. At 10:00 a.m., pending home sales data for April will be published. Discussions by Fed officials include speeches from Richmond Fed President Tom Barkin at 9:50 a.m., and Boston Fed President Susan Collins at 10:30 a.m.

Companies in the Spotlight

The stock of chip maker Nvidia NVDA, -0.49% jumped 24% in premarket trade as the company guided for a record $11 billion revenue in the second quarter, with first quarter earnings exceeding Wall Street expectations. Other AI-based businesses such as Advanced Micro Devices and C3.ai saw 9% gains. While data-software company Snowflake Inc. SNOW, +1.13% beat market expectations with its latest earnings, it cut its outlook for the full year resulting in a 14% drop in shares. Clothing chain American Eagle Outfitters Inc. AEO, +4.50% saw a 20% decrease in shares after it forecasted a “low-single digits” decline in sales for Q2.