U.S. equity futures traded slightly lower on Thursday as investors absorbed another set of blockbuster earnings from artificial intelligence chip leader Nvidia (NASDAQ:NVDA) while continuing to monitor developments surrounding the conflict between the United States and Iran.
By 03:32 ET, Dow futures had fallen 112 points, or 0.2%, while S&P 500 futures slipped 19 points and Nasdaq 100 futures declined 126 points. The pullback followed gains on Wall Street the previous session, when markets rebounded after three consecutive days of losses amid growing hopes for a potential peace agreement between Washington and Tehran. Lower oil prices also helped ease pressure on U.S. Treasury yields and supported broader equity sentiment.
Minutes from the Federal Reserve’s April meeting showed policymakers still concerned about inflation risks, with strategists at BCA Research noting that most officials believe “some policy firming would likely become appropriate if inflation were to continue to run persistently above 2%.” Despite those concerns, market attention has increasingly shifted back toward the momentum behind artificial intelligence-related growth, particularly ahead of Nvidia’s latest results.
Nvidia posts another quarter of record growth
Nvidia delivered quarterly figures that reinforced its central role in the AI boom, reporting April-quarter revenue of US$81.6 billion, up 85% from a year earlier and ahead of analyst expectations. Net income reached US$58.3 billion, more than tripling year-on-year and comfortably surpassing Wall Street forecasts.
Chief executive Jensen Huang highlighted what he called the arrival of the “era of agentic AI,” adding that demand had become “parabolic” as businesses increasingly adopt systems capable of independently carrying out tasks for users.
Wedbush analysts described Nvidia as effectively dominating the semiconductor landscape, writing that the company is essentially the landlord while “everybody else [is] paying rent as more sovereigns and enterprises wait in line for [its] chips.”
Despite the strong earnings beat, Nvidia shares were little changed in premarket trading after analysts cited by Reuters pointed out that the company’s guidance excluded China-related sales and was only modestly above expectations. Analysts also noted that Nvidia continues to face exceptionally high market expectations, meaning even impressive results may struggle to fully satisfy investors.
SpaceX files for record-breaking IPO
Elsewhere in technology markets, Elon Musk’s SpaceX drew significant attention after filing for what could become the largest initial public offering ever. The aerospace company is reportedly targeting a fundraising of at least US$80 billion, surpassing the record set by Saudi Aramco’s 2019 flotation.
The IPO filing offered new insight into SpaceX’s business operations and finances. Alongside its space launch activities, the company operates a major satellite internet division. The launch business generated US$4.1 billion in revenue last year but remained unprofitable, while the satellite business produced US$11.4 billion in revenue.
Total expenditures reached US$20.7 billion, largely due to heavy investment by xAI, Musk’s artificial intelligence startup focused on data centre expansion. SpaceX and xAI merged in February, and analysts have speculated that Tesla could eventually be combined with the group as well.
OpenAI reportedly preparing stock market debut
The Wall Street Journal reported that OpenAI may also be preparing for a public listing as early as September. According to sources familiar with the matter, the ChatGPT developer has been working with advisers including Goldman Sachs and Morgan Stanley to prepare IPO documentation.
A significant obstacle was removed earlier this week after OpenAI prevailed in its legal dispute with Elon Musk, although Musk has since pledged to appeal the ruling.
Markets monitor progress toward U.S.-Iran agreement
Beyond the technology sector, investor optimism was also supported by hopes for a possible agreement to end the more than two-month conflict between the United States and Iran. President Donald Trump said Washington was in the “final stages” of negotiating a potential peace arrangement, although he also warned that “we’re going to do some things that are a little bit nasty” if talks fail.
Iran confirmed it was reviewing the latest U.S. proposals aimed at ending the conflict. Investors are particularly focused on whether any agreement could lead to the reopening of the Strait of Hormuz, the key shipping route off Iran’s southern coast that has been largely closed to tanker traffic since the war began in late February. Shipping data reported earlier this week suggested that some vessels have recently resumed passage through the waterway.
Brent crude futures were last trading slightly higher at US$106.34 per barrel after retreating from levels near US$110 following Trump’s earlier comments about a possible deal.