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Investing.com — The S&P 500 and Nasdaq futures rose in Wednesday night trading, with the latter leading the gains as optimism about AI darling Nvidia's strong prospects drove investors into tech stocks.
However, Dow futures were tepid after a series of other weak earnings reports, suggesting the bank is in no hurry to start cutting rates.
By 18:12 ET (23:12 GMT), futures were up 0.4% at 5,018.75 points and futures were up 0.9% at 17,688.25 points. It fell 0.1% to 38,646.00 points. The strong rise in the Nasdaq market showed increased appetite for technology stocks.
Wall Street as investors lock in recent gains ahead of Nvidia Corporation's (NASDAQ:) quarterly results and see if the company's valuation can justify a big jump on the back of rising demand. Futures prices rose after a series of mid-market trades. artificial intelligence.
It rose 0.1% to 4,981.80 points on Wednesday. It rose 0.1% to 38,612.24 points and fell 0.3% to 15,580.87 points.
Q4 earnings forecast exceeds expectations, technology sector rises, NVIDIA soars
Nvidia's stock jumped 7.4% in aftermarket trading to $724.70, putting it back within sight of its all-time high set in early February.
The world's most valuable chipmaker forecast first-quarter revenue of about $24 billion, which was higher than analysts expected.
The strong earnings and outlook are based on the expectation that the company will continue to benefit from increased demand for AI development, given that it is a leading manufacturer of chips specializing in large-scale language models, which will see a surge in popularity through 2023. It showed that there was.
Nvidia's rally also spilled over into other major tech stocks, as investors expect AI demand to also boost the broader technology sector in the coming months. Alphabet Inc. (NASDAQ:), Microsoft Corporation (NASDAQ:), and Metaplatforms Inc. (NASDAQ:), all of which are developing AI products, rose 0.2% to 1.4% in aftermarket trading. .
Major semiconductor manufacturing stocks expected to benefit from increased demand for AI also surged in aftermarket trading. TSMC (NYSE:) US shares rose 3.3%, while Micron Technology (NASDAQ:) and Intel Corporation (NASDAQ:) rose 1.6% and 0.9%, respectively.
Palantir Technologies (NYSE:), Advanced Micro Devices (NASDAQ:) and Super Micro Computers (NASDAQ:) soared between 3.7% and 9%.
Questions about interest rates, profits vary
But despite the tech optimism, weakness in Dow futures suggests investors remain somewhat wary of rising long-term interest rates, and other returns were somewhat mixed. was.
The Fed's minutes mainly reiterated the central bank's stance to keep interest rates high in the short term.
Among the aftermarket decliners are Etsy Inc. (NASDAQ:) fell 8.4% after the e-commerce company reported mixed results and outlook. Rivian Automotive Inc (NASDAQ:) fell 15% after the electric car maker predicted disappointing production numbers for 2024.
