Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading in New York on August 23, 2024.
Angela Weiss | AFP | Getty Images
Stock futures rose Thursday, as investors looked to recover from declines seen in the previous session. Wall Street also appeared to shake off a post-earnings decline in Nvidia.
Dow Jones Industrial Average futures were up 247 points, or 0.6%. S&P 500 and Nasdaq-100 futures each climbed 0.3%.
Nvidia shares were down 4% after posting its latest earnings Wednesday afternoon. In its fiscal second quarter, the AI chipmaker exceeded expectations on the top and bottom lines, and issued a rosy current-quarter sales outlook.
Nvidia
“Death, taxes, and NVDA beats on earnings are three things you can bank on. Here’s the issue, the size of the beat this time was much smaller than we’ve been seeing. Even future guidance was raised, but again not by the tune from previous quarters,” wrote Ryan Detrick, chief market strategist at Carson Group.
“This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season,” Detrick added.
That decline was offset by a pop in Salesforce. Shares traded 5% higher after the business software giant beat fiscal second-quarter estimates and raised its full-year profit outlook.
Wall Street is coming off a losing session after a slump in Nvidia shares ahead of the company’s earnings results weighed on the major averages. The tech-heavy Nasdaq Composite dropped 1.12%, while the S&P 500 fell 0.6%. The 30-stock Dow slid about 159 points, or 0.39%.
Those moves highlight the growing significance of Nvidia to the broader market. The semiconductor company, which passed the $3 trillion market cap this year to briefly become the world’s most valuable public company, now accounts for roughly 7% of the S&P 500.