S&P 500 futures edged lower as traders assessed Nvidia’s latest earnings report, which, while exceeding expectations, did little to shift the high bar set for the AI giant. Elsewhere, Intuit shares plunged after a significant workforce reduction and missed revenue targets, while E.l.f. Beauty climbed on strong results.
Meanwhile, Asia-Pacific markets rose, tracking Wall Street’s gains, with optimism surrounding the Middle East conflict cooling oil prices. Investors are now looking ahead to earnings from Walmart and Workday, alongside key economic data releases.
S&P 500 futures experienced a slight dip early Thursday, as investors weighed artificial intelligence titan Nvidia's latest earnings report against the backdrop of high market expectations.
Futures tied to the S&P 500 index declined by 0.1%, while Nasdaq 100 futures remained flat. Dow Jones Industrial Average futures saw a drop of 50 points, or 0.1%.
Nvidia's performance exceeded Wall Street's revenue and earnings forecasts, accompanied by an increase in its quarterly cash dividend to 25 cents. However, the market has grown accustomed to the chipmaker's consistent outperformance and upward revisions in its outlook, fueled by the ongoing AI boom.
Nvidia's shares experienced volatility in extended trading, ultimately settling down about 1%.
In other corporate news, Intuit tumbled 13% after reporting weaker-than-expected revenue and announcing a significant workforce reduction of approximately 17%, impacting around 3,000 employees. Conversely, E.l.f. Beauty climbed 4% after surpassing analyst expectations for both earnings and revenue, and signaling a rollback of certain tariff-related price increases.
The stock market concluded Wednesday with a rally, breaking a three-day losing streak for the S&P 500, buoyed by retreating oil prices and bond yields. Investor sentiment was further lifted by President Donald Trump's statement that the administration was in the "final stages" of negotiations with Iran.
Scott Helfstein, head of investment strategy at Global X ETFs, commented, "The market is coming off a really strong earnings season that delivered positive revisions to earnings expectations, but concerns around inflation and demand destruction in the economy are proving persistent." He added, "That can be hard to look through, but there are still a lot of positive trends that can help propel the economy and markets."
Market participants will be closely watching earnings reports from Walmart, the nation's largest grocer and private employer, before the market opens. Following the market close, Workday is scheduled to release its results. Additionally, investors will be tracking key economic data releases on jobless claims, housing, and manufacturing throughout the morning.
In Asia-Pacific markets, optimism over a potential de-escalation of the Middle East conflict led to higher openings, mirroring Wall Street's gains and contributing to a cooling of oil prices.
Japan's Nikkei 225 surged 3.54%, boosted by the country's latest trade data, which showed exports rising at their fastest pace since January. Imports also grew, exceeding expectations, and the trade balance narrowed.
SoftBank Group saw a significant increase, nearly 20%, driven by the continued momentum in the AI sector following Nvidia's strong earnings. South Korea's Kospi and Kosdaq extended their gains, with Samsung Electronics and SK Hynix showing notable advances. A strike threat at Samsung Electronics was averted following a breakthrough in wage negotiations.
Daniel Yoo, global strategist at Yuanta Securities (Korea), expressed optimism about the Kospi's potential, forecasting it to reach 10,000 by year-end.
Australia's S&P/ASX 200 advanced 1.62%, while China's CSI 300 gained 1.67%, and Hong Kong's Hang Seng Index added 0.24%.
Investors are also exploring ways to gain exposure to SpaceX through ETFs, as the company filed its IPO prospectus. SpaceX is a significant holding in several ETFs, including Baron Capital's Partners Fund and Growth Fund, as well as Cathie Wood's ARK Venture Fund and ERShares' Private-Public Crossover ETF.
Several stocks made significant moves after regular trading hours:
- Nvidia: Shares saw a slight dip after reporting an 85% year-over-year revenue surge to $81.62 billion, surpassing analyst expectations.
- Intuit: The financial software stock tumbled following the announcement of a 17% workforce reduction and a miss on third-fiscal-quarter revenue expectations.
- E.l.f. Beauty: The retailer's shares jumped nearly 5% after exceeding fourth-fiscal-quarter revenue and earnings forecasts.
