Stock futures were little changed on Thursday evening after the worst session in over a year for the Dow Jones Industrial Average. Futures tied to the 30-stock Dow were hovering near the flatline, with S&P 500 futures ticking up slightly and Nasdaq 100 futures pulling back. During the session, chipmaker Nvidia saw a significant increase of more than 9%, driven by strong guidance and an earnings beat, along with announcing a 10-for-1 stock split. Nvidia has become a key bellwether for the market and is a leader in the “Magnificent Seven” group of stocks.
Despite Nvidia’s success, over 400 stocks in the S&P 500 closed lower on Thursday, leading to losses in the broader market. The S&P 500 index dropped by 0.74%, the Nasdaq Composite fell by 0.39%, and the Dow suffered a 1.53% decline, its worst session since March 2023, largely due to a 7.6% drop in Boeing. The Federal Reserve’s recent minutes expressing concerns about inflation also weighed on the market, affecting investor sentiment.
Following strong economic data on Thursday, including better-than-expected reports on services and manufacturing, as well as initial jobless claims, investors are less hopeful for rate cuts from the Federal Reserve. The S&P 500 is on track for a weekly loss of 0.7%, while the Dow is expected to drop around 2.4%, with the Nasdaq slightly outperforming with a modest gain of 0.3%. Traders are watching for upcoming economic reports, including April’s durable goods report and May’s University of Michigan consumer sentiment index.
In after-hours trading, shares of Intuit fell by 7% due to soft guidance for the current quarter, while Ross Stores saw a jump in stock price following top- and bottom-line beats for the first quarter. Despite these individual stock movements, market sentiment remains cautious heading into a long holiday weekend. The previous day’s Fed minutes and concerns over inflation have overshadowed positive news, such as Nvidia’s performance, leading to mixed outcomes in the market.
Overall, market trends continue to be influenced by economic data, central bank policies, and individual company performance. Investors are closely monitoring various indicators to gauge the health of the economy and potential future market movements. The upcoming reports and events, such as durable goods data and consumer sentiment readings, will provide further insight into the market’s direction in the coming days.
