Tags: u.s. stock futures

Stock Futures Inch Higher as Nvidia Gains

Stock Futures Inch Higher as Nvidia Gains
(AP)

Wednesday, 22 November 2023 07:40 AM EST

Futures tracking the S&P 500 and the Nasdaq edged higher Wednesday as shares of chip designer Nvidia rose following third-quarter results, while uncertainty about potential rate cuts kept further gains in check.

Nvidia forecast overall revenue above Wall Street targets, but the company warned U.S. export curbs could lead to a steep drop in fourth-quarter sales in China.

Shares of Nvidia had initially slipped in premarket trading, but reversed course to climb 1.1%.

"A very high bar has been set for Nvidia and because of concerns about trade tensions, there is some element of worry creeping back," said Susannah Streeter, head of money and markets at Hargreaves Lansdown, while highlighting that the company posted strong quarterly results.

Investors also had an eye on the latest turn of events at OpenAI after the ChatGPT maker reached an agreement for Sam Altman to return as CEO days after his ouster. Shares of the startup's financial backer Microsoft edged 0.6% higher.

Big Tech stocks led a rebound in U.S. equities in November, with the S&P 500 coming within a whisker of its highest level this year, as signs of easing inflation boosted bets that the Fed was done with its interest rate hikes.

The benchmark index and the tech-heavy Nasdaq, however, snapped a five-session winning streak on Tuesday after minutes from the latest Fed meeting showed officials agreed to take a cautious approach to raising U.S. interest rates going forward.

The central bank's guarded stance is weighing on enthusiasm about rate cuts coming later, Streeter said.

Light trading volumes also impacted market moves ahead of the Thanksgiving holiday on Thursday.

Later in the day, investors will parse a number of economic reports for more clues on the strength of the U.S. economy and the outlook for interest rates.

Durable goods data for October and weekly jobless claims numbers are scheduled to be released at 8:30 am ET followed by a final reading of the University of Michigan's consumer sentiment index for November.

At 6:57 a.m. ET, Dow e-minis were down 5 points, or 0.01%, S&P 500 e-minis were up 6 points, or 0.13%, and Nasdaq 100 e-minis were up 37.25 points, or 0.23%.

Among other major movers, Deere & Co shed 7.5% before the bell after the farm equipment maker forecast 2024 profit below analysts' estimates as high borrowing costs and squeezed budgets dented demand. Peer Caterpillar also fell 2.2%.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Futures tracking the S&P 500 and the Nasdaq edged higher Wednesday as shares of chip designer Nvidia rose following third-quarter results, while uncertainty about potential rate cuts kept further gains in check.
u.s. stock futures
397
2023-40-22
Wednesday, 22 November 2023 07:40 AM
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