The S&P 500 futures increased in overnight trading on Wednesday due to a rise in Nvidia shares following the chip company’s record revenue and positive guidance. Nasdaq 100 futures also gained more than 1%, while Dow Jones Industrial Average futures added 42 points, or 0.1%. Nvidia shares surged 9% in after-hours trading after the chip company announced a 265% increase in total revenue compared to a year ago, driven by its booming artificial intelligence business. The chipmaker’s blowout quarter could further boost confidence in the broader market.
AI enthusiasm has powered Nvidia’s rally and other Big Tech names over the past year, and the chipmaker’s strong performance is expected to bolster confidence in the tech space. The tech-heavy Nasdaq Composite is expected to see a rebound from its three-day losing streak on Thursday. Furthermore, minutes from the Federal Reserve’s last meeting showed that central bank officials expressed caution about lowering interest rates too quickly and emphasized the importance of carefully assessing incoming data, adding uncertainty to the rates market.
Investors are eagerly anticipating the release of weekly jobless claims data and existing home sales figures from January, as well as the earnings reports of companies such as Moderna, Builders FirstSource, Live Nation, Booking Holdings, and Intuit. Overall, the market is expected to continue its strong performance fueled by the positive news from companies like Nvidia and the cautious approach of the Federal Reserve.