U.S. stock index futures indicated a largely flat opening on Thursday, suggesting markets may struggle to find clear direction after two consecutive sessions of strong gains.
Investor sentiment appeared divided following earnings updates from Dow components Nvidia (NASDAQ:NVDA) and Salesforce (NYSE:CRM), setting the stage for potentially volatile and uneven trading.
Nvidia shares climbed about 1.0% in premarket activity after the artificial intelligence heavyweight delivered fiscal fourth-quarter results that surpassed expectations and issued optimistic forward guidance.
“Despite markets already pricing in extraordinary year-on-year growth, Nvidia projected revenue for the next quarter well above consensus estimates,” said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, “The results reset a narrative that had begun to tilt overly bearish in recent sessions, where concerns around overspending, diminishing returns and intensifying competition had weighed on valuations.”
In contrast, Salesforce shares fell roughly 1.7% ahead of the open. While the enterprise software provider reported stronger-than-expected fourth-quarter earnings, investors reacted negatively to softer guidance for the period ahead.
Wall Street ended Wednesday’s session broadly higher, extending momentum from earlier gains and helping major benchmarks recover losses recorded at the start of the week. The Nasdaq and S&P 500 have now fully erased Monday’s sharp declines.
By the close, the main indexes finished slightly below intraday highs. The Nasdaq advanced 288.40 points, or 1.3%, to 23,152.08, the S&P 500 gained 56.06 points, or 0.8%, to 6,946.13, and the Dow Jones Industrial Average rose 307.65 points, or 0.6%, to 49,482.15.
Part of Wednesday’s strength reflected anticipation surrounding Nvidia’s earnings release after the closing bell, with the chipmaker’s stock rising 1.4% during the session.
Technology names broadly supported the rally. IBM Corp. (NYSE:IBM) surged 3.6%, continuing its rebound after Monday’s sharp drop, helped by UBS upgrading the stock to Neutral from Sell.
Oracle (NYSE:ORCL) also moved higher, gaining 1.2% after Oppenheimer raised its rating on the software company to Outperform from Perform.
Software stocks were among the day’s strongest performers overall, with the Dow Jones U.S. Software Index jumping 3.1%. The index extended its recovery after falling to a ten-month closing low earlier in the week amid easing concerns about artificial intelligence disruption.
Computer hardware shares also posted solid gains, highlighted by a 2.9% rise in the NYSE Arca Computer Hardware Index.
Financial, networking, and semiconductor stocks likewise showed notable strength, while housing stocks moved sharply lower during the session.