U.S. stock index futures moved modestly higher early Thursday, with the market digesting Nvidia's latest quarterly results. Dow Jones Industrial Average futures climbed 111 points, or 0.22%, to 50,205, while S&P 500 futures added 0.10% to 7,459 and Nasdaq 100 futures gained 0.05% to 29,405.75, based on delayed data. The muted reaction underscores the high bar set for the chipmaker after its earnings beat.
Nvidia reported record quarterly revenue of $81.6 billion, an 85% jump from the same period last year. Data-center revenue surged 92% to $75.2 billion. The company also authorized an additional $80 billion share buyback program and raised its quarterly dividend to 25 cents from 1 cent. CEO Jensen Huang highlighted the accelerating buildout of AI factories and the arrival of agentic AI, signaling broadening demand beyond initial model training. Despite these strong figures, Nvidia shares slipped in premarket trading, as investors had already priced in much of the good news.
The broader market's focus remains on AI spending, with Nvidia serving as a bellwether. However, increasing competition from rivals like AMD and large customers such as Alphabet and Amazon, who are developing custom processors, could pressure Nvidia's market share. This dynamic keeps the AI trade at the center of Wall Street's attention.
Treasury yields continued to influence sentiment, with the 10-year yield hovering near 4.58%. Recent Federal Reserve meeting minutes revealed that more officials are preparing for a potential rate increase rather than a cut, adding to the cautious tone. Higher yields have historically weighed on stock valuations, particularly for growth-oriented tech stocks.
Oil prices edged lower in early trading amid ongoing Middle East developments. Brent and U.S. crude benchmarks declined, though traders remain vigilant for any headlines that could reverse the trend. The recent U.S.-Iran talks have introduced both peace signals and tougher rhetoric, keeping conviction low among market participants.
On the economic calendar, weekly jobless claims, housing starts, building permits, and flash S&P Global purchasing managers' indexes are due before and after the opening bell. These data points will provide fresh insight into the health of the U.S. economy.
Walmart is set to release its first-quarter results at 6 a.m. CDT, with a conference call at 7 a.m. CDT. CEO John Furner and CFO John David Rainey will discuss the retailer's performance. A soft update from Walmart could amplify concerns that higher fuel costs and tight borrowing conditions are beginning to pinch consumers, especially as stock valuations lean heavily on AI optimism.
Overall, while futures point to a positive open, risks remain. If Nvidia's early weakness deepens, oil prices spike on a setback in Iran talks, or yields push back toward weekly highs, the early gains could evaporate quickly. Investors are treading carefully in a market where AI momentum meets macroeconomic headwinds.
