TLDR
- Nvidia reported an earnings beat, with stock rising 7% in premarket trading
- Nvidia agreed to buy Hugging Face for $12.9 billion
- Salesforce, CrowdStrike, and Okta also beat Wall Street earnings targets
- S&P 500 futures rose 0.5%, Nasdaq 100 futures jumped 1.1%
- Fed Chair Kevin Warsh set to speak at Jackson Hole Symposium on Friday
US stock futures moved higher on Thursday morning after a wave of strong tech earnings lifted investor sentiment overnight.
Nasdaq 100 futures jumped 1.1%, while S&P 500 futures rose 0.5%. Dow Jones futures slipped slightly, down around 55 points.
Nvidia was the standout performer. The chipmaker reported second-quarter results that beat analyst expectations and forecast strong revenue growth into fiscal 2028.
Nvidia shares rose 7% in premarket trading. The company also signaled that demand for AI chips remains strong going into next year, calming investor nerves about whether the AI boom could last.
CEO Jensen Huang commented on the company’s AI investment strategy, saying the only regret he had was not investing more, and sooner, in AI labs.
Nvidia Makes Major Acquisition Move
In a separate development, Nvidia agreed to buy Hugging Face, an open-source AI model platform, for $12.9 billion. The deal was first reported by The Information on Wednesday night.
Hugging Face is widely used by developers and researchers to access and share AI models. The acquisition would give Nvidia a stronger foothold in the software layer of the AI industry.
Other tech names also delivered strong results. Salesforce, CrowdStrike, and Okta all came in ahead of Wall Street targets.
CrowdStrike shares rose more than 2% in premarket trading. Salesforce was little changed.
Deutsche Bank economist Peter Sidorov said the market mood had turned more positive overnight following Nvidia’s results. He added that the revenue outlook pointed to continued optimism around AI demand growth into next year.
Jackson Hole in Focus
Attention will now shift to the Federal Reserve’s Jackson Hole Economic Symposium, which kicks off Thursday.
Fed Chair Kevin Warsh is scheduled to deliver the keynote address on Friday. Investors will be watching closely for any signals on the direction of interest rate policy.
Bond yields have steadied after spiking last week. Markets continue to weigh the likelihood that the Fed will hold rates at current levels.
Weekly jobless claims data was also released Thursday, adding more information to the picture of the US labor market.
Elsewhere, earnings from Dollar General and Dollar Tree are due. Discount retailers have seen an uptick in higher-income shoppers in recent quarters, and their results could shed light on the current state of consumer spending.
The broader market had closed slightly lower on Wednesday in quiet trading, but futures suggest Thursday could see a recovery driven largely by Nvidia’s results.
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