Traders work on the floor of the New York Stock Exchange during afternoon trading on April 9, 2024.
Michael M. Santiago | Getty Images
Stock futures hovered near the flatline in overnight trading after the S&P 500 notched a new record closing high thanks to a rally in artificial intelligence chip darling Nvidia.
Futures tied to the S&P 500 rose nearly 0.1%, while Nasdaq-100 futures inched up 0.1%. Futures connected to the Dow Jones Industrial Average added 10 points.
Lululemon jumped 10% in extended trading on as the sportswear manufacturer beat expectations in its fiscal first quarter. Five Below sank nearly 15% on lackluster results and guidance.
Stocks are coming off a winning session. The S&P 500 jumped 1.18% to close at 5,354.03. The index also touched a new intraday all-time high of 5,354.16. The Nasdaq Composite jumped 1.96% to 17,187.90 and also hit a new record, while the Dow Jones Industrial Average added 0.25% to close at 38,807.33.
Nvidia powered those gains surging more than 5% to top a $3 trillion market valuation and surpass Apple in value. Earlier this week, the company announced its next generation of AI chips, known as “Rubin.”
“If you’re designing the perfect momentum company from scratch, Nvidia would be it,” New York University finance professor Aswath Damodaran said on CNBC’s “Closing Bell” on Wednesday. “You got a great story, a CEO who sticks to the story … and you got a market that contributes to the mix. I think that you’re seeing one of the great momentum plays of all time playing right in front of you.”
Wall Street is looking ahead to Friday’s nonfarm payrolls report for May, with investors on the hunt for signs of a weakening labor market, which could support rate cuts from the Federal Reserve. Private payrolls data from ADP released Wednesday showed a slowdown in hiring.
Earnings from J.M Smucker are due out Thursday, as are reports on continuing and initial jobless claims.
