Stock market today: Dow leads US futures higher in aftermath of Nvidia earnings

Aug 29,2024

US stocks were poised for gains on Thursday, with the Dow leading the advance as the dust settled after Nvidia's ( NVDA ) solid but disappointing earnings and investors reassessed the prospects for techs.

Dow Jones Industrial Average futures ( YM=F ) were up 0.5% to eye a return to setting record highs. Futures on the tech-heavy Nasdaq 100 ( NQ=F ) rose 0.1%, while those on the S&P 500 ( ES=F ) moved up roughly 0.2% on the heels of losses for all three gauges .

Stocks are taking a positive sheen amid Wall Street's lackluster reception for the numbers from Nvidia , whose stellar growth streak has underpinned the market's rally this year.

While the AI chipmaker's quarterly profit and revenue guidance topped estimates, the size of the beats fell short of high-running hopes. That started to stir questions as to whether the AI boom has peaked and initially dragged Nvidia's stock down 6%, though the shares are recovering in pre-market trading.

Also in focus is a potential rotation out of tech stocks, given the more solid gains for the Dow and the Russell 2000 ( RTY=F) before the bell.

Elsewhere in earnings, Salesforce ( CRM ) shares popped after a big earnings beat by the software maker. Results from Best Buy ( BBY ), Gap ( GAP ), and Ulta Beauty ( ULTA ) are on the docket on Thursday.

The US economy grew at a stronger pace than expected in the second quarter, according to the latest gross domestic product print released on Thursday morning. GDP increased 3% on an annualized basis for the three month period, up from a prior reading of 2.8%.

Meanwhile weekly US jobless claims came in at 231,000, a decline from the prior week, and lower than 232,000 expected by economists.

The market is closely watching economic data for a steer on how fast and deep the Federal Reserve will lower interest rates, now that Chair Jerome Powell has clearly flagged a cut is coming in September.