Key Moments
- S&P 500 and Nasdaq 100 futures rose to fresh record levels, supported by gains in major technology names.
- Nvidia climbed 1.9% in premarket trading, lifting its market value to over $5.5 trillion after a U.S. clearance for AI chip sales to Chinese firms.
- Cisco jumped 16.3% premarket after announcing nearly 4,000 job cuts and raising its annual revenue outlook.
Futures Advance on Tech Strength and Nvidia Rally
Futures tied to the S&P 500 and Nasdaq reached record highs on Thursday, as a premarket surge in Nvidia buoyed sentiment while investors monitored a closely watched U.S.-China summit and awaited key economic releases.
Nvidia gained 1.9% in premarket trading, pushing the chipmaker’s market capitalization to more than $5.5 trillion. The move followed a Reuters report, citing sources, that the United States has approved roughly 10 Chinese companies to purchase its second-most powerful artificial intelligence chip, the H200.
A persistent upswing in technology shares in recent weeks – led by semiconductor companies – has driven U.S. equity benchmarks to new peaks, even as markets continued to grapple with concerns over the conflict in the Middle East and inflation pressures stemming from higher oil prices.
Geopolitics in Focus as U.S. and China Hold Summit
Chinese President Xi Jinping told President Donald Trump at the start of a two-day summit on Thursday that trade negotiations were progressing, while cautioning that frictions over Taiwan could put bilateral ties on a precarious trajectory and potentially escalate into conflict.
Trump’s visit also unfolded against the backdrop of the war with Iran, with the U.S. president expected to seek China’s assistance in working toward an end to the costly conflict that has helped drive global energy prices sharply higher.
Index Futures Snapshot
By 07:05 a.m. ET, U.S. equity index futures were firmly higher across the board.
| Contract | Move (points) | Change (%) |
|---|---|---|
| Dow E-minis | +359 | +0.72% |
| S&P 500 E-minis | +22 | +0.29% |
| Nasdaq 100 E-minis | +82.25 | +0.28% |
“It does look like the market is shrugging off the hotter-than-expected inflation, even though we have seen expectations surrounding a more hawkish Fed show up,” said Fiona Cincotta, senior market analyst at City Index.
“It’s the euphoria surrounding AI, tech, and particularly chip stocks and all this is happening as attention is obviously on the U.S. and China as Trump meets with Xi Jinping.”
Inflation Data, Fed Expectations, and Upcoming Releases
The S&P 500 and Nasdaq extended their climb on Wednesday, closing at new record highs as part of a recent stretch of all-time peaks.
Stronger readings this week on consumer prices and producer prices have reinforced expectations that the Federal Reserve is likely to keep monetary policy tight for an extended period.
According to CME Group’s FedWatch Tool, traders are currently assigning more than a 28% probability to a quarter-point interest rate increase by the end of the year, up from 20.7% one week earlier.
Investors are now looking to U.S. April retail sales data, due at 8:30 a.m. ET, for indications of whether higher gasoline and energy costs are starting to constrain household spending. Weekly initial jobless claims, set for release at the same time, will also be scrutinized for fresh signals on labor market conditions.
Stock-Specific Movers: Cisco Surges
Among notable premarket movers, Cisco jumped 16.3% after the technology networking company announced plans to eliminate nearly 4,000 positions as part of a restructuring effort and raised its full-year revenue forecast, citing a sharp increase in orders from hyperscale customers.
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