Nvidia’s strong earnings report on Thursday signaled substantial growth potential and eased concerns about faltering AI demand. The company’s stock rose 2.6% in premarket trading, leading US stock futures higher. The tech-heavy Nasdaq 100 contracts were up roughly 0.8%, while those on the S&P 500 added 0.6%.
Dow Jones Industrial Average futures edged 0.2% higher. Investors also scrutinized President Trump’s recent tariff announcements, which involved a pledge to impose 25% tariffs on the European Union and revived duties on Canada and Mexico. However, he remained vague on details, confusing the timing.
The US economy showed mixed signals. According to the Bureau of Economic Analysis’s second estimate, it grew at an unrevised 2.3% annualized pace last quarter, matching consensus estimates.
Nvidia boosts optimism in AI growth
Weekly initial jobless claims rose to 242,000, higher than the 221,000 expected by economists, indicating a softening labor market. Salesforce shares fell 3% in premarket trading after the company issued a weaker-than-expected 2025 outlook, downplaying the near-term revenue impact of its AI-powered Agentforce platform. Oil prices rose slightly after President Trump announced the cancellation of Chevron’s license to operate in Venezuela, potentially restricting crude supply.
Brent crude oil futures crept up 0.3%, while West Texas Intermediate crude oil futures inched up 0.2%. Asian markets fell on Thursday as investors reacted to President Trump’s tariff announcements and Nvidia’s earnings. Moderna’s stock fell in premarket trading following a report that the HHS is reviewing its contract to produce bird flu vaccines, a move potentially followed by cost cuts from the Trump administration.
Gold held near its record high as investors turned to safe assets due to tariff concerns. Investors are now looking ahead to the release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, for further economic clues.
Image Credits: Photo by Mariia Shalabaieva on Unsplash
