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US stocks were poised for gains on Thursday, with the Dow Jones leading the way as the dust settled after Nvidia’s (NVDA) solid but disappointing earnings emerged and investors reassessed the prospects for technology.
Dow Jones Industrial Average futures () rose 0.5% on expectations for a return to record highs. Futures on the tech-heavy Nasdaq 100 () rose 0.1%, while those on the S&P 500 () rose about 0.2% due to losses across all three indicators.
Shares are getting a positive glow amid the lackluster reception on Wall Street for the numbers from Nvidia, whose stellar growth streak has underpinned the market’s rally this year.
Although the AI chip maker’s quarterly profit and revenue expectations exceeded expectations, the size of the figures fell short of high expectations. That started raising questions about whether the AI boom has peaked, initially sending Nvidia’s shares down 6%, although the shares are recovering in pre-market trading.
There is also focus on a potential rotation out of technology stocks, given the more solid gains for the Dow and the Russell 2000 (RTY=F) before the bell.
Elsewhere in earnings, shares of Salesforce (CRM) rose following a big profit drop from the software maker. Results from Best Buy (BBY), Gap (GAP) and Ulta Beauty (ULTA) are due Thursday.
At the same time, an update on weekly unemployment benefits could revive the rate cut debate, as could a reading on second-quarter GDP. The market is closely watching economic data to determine how quickly and deeply the Federal Reserve will cut rates, now that Chairman Jerome Powell has clearly indicated a rate cut is coming in September.
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