In the dynamic world of finance, U.S. stocks are poised to open on a potentially negative note on Thursday. This comes after the AI bellwether Nvidia Corp.’s NVDA guidance failed to meet some market expectations. As investors carefully process the implications of the AI giant’s earnings, futures of all three major indices are showing a downward trend. Other prominent chip makers such as Qualcomm Inc. QCOM, Intel Corp. INTC, Broadcom Inc. AVGO, and Advanced Micro Devices Inc. AMD are also experiencing pressure in premarket trading.
Market Indicators and Pre-Market Movements
In premarket trading on Thursday, the SPDR S&P 500 ETF Trust SPY fell 0.25% to $589, and the Invesco QQQ ETF QQQ declined 0.34% to $501.46, according to Benzinga Pro data. The Dow Jones, which snapped its two-session losing streak this week, closed 100 points higher on Wednesday. Meanwhile, the S&P 500 eked out a marginal gain to finish in the green. However, the tech-heavy Nasdaq faced volatility due to Nvidia’s earnings after the bell. Crude oil prices continued to rise amid growing tensions between Russia and Ukraine but remained below the $70 mark. Treasury yields eased slightly as investors awaited further economic data. On the economic data front, mortgage applications in the U.S. rose 1.7% from the previous week in the week ending Nov. 15, compared to a 0.5% gain in the prior period. Most sectors on the S&P 500 closed in the positive, with healthcare, energy, and materials stocks recording the biggest gains. Nevertheless, consumer discretionary and financial stocks defied the overall market trend and closed lower.Index Performance and Value
The Nasdaq Composite showed a -0.11% performance with a value of 18,966.14. The S&P 500 had a 0.002% change and a value of 5,917.11. The Dow Jones witnessed a 0.32% increase and a value of 43,408.47. The Russell 2000 also had a 0.03% performance with a value of 2,325.53.Analysts' Insights
Ryan Detrick, the chief market strategist at Carson Group, remains optimistic about the potential for a continued bull run despite the current market weakness. He emphasizes that weakness at this time is entirely normal and encourages investors not to give up on a late November rally. Despite the volatile movement in Nvidia and other chipmaker stocks, Wedbush analyst Dan Ives maintains a positive outlook on the AI giant’s performance. He stated, "The Godfather of AI Jensen and Nvidia delivered a massive beat and big things ahead for Blackwell." This sentiment was echoed in his tweet on November 21, 2024.Nvidia's Earnings and Market Impact
Nvidia posted third-quarter revenue of $35.1 billion, representing a 94% year-on-year increase and beating the Street consensus of $33.12 billion. This was the ninth consecutive quarter of Nvidia surpassing analyst estimates. Tech bull Ives believes that this is the "fourth revolution" in technology and could potentially drive the Nasdaq to surge to 25,000.Stocks in Focus
Nvidia Corp. NVDA shares fell 2.6% in premarket trading on Thursday due to a quarter-on-quarter decline in gross margins. Other chip stocks also felt the pressure following Nvidia's earnings. Qualcomm Inc. QCOM dropped nearly 1%, Intel Corp. INTC was down 0.6%, and Broadcom Inc. AVGO and Advanced Micro Devices Inc. AMD both fell 0.5% in premarket trading. MicroStrategy Inc. MSTR stock surged over 10% on Wednesday and rose by another 11% in premarket trading after Bitcoin BTC/USD crossed the $95,000 mark. Robinhood Markets Inc. HOOD stock also saw an increase of over 3%. Snowflake Inc. SNOW shares rose over 21% in premarket trading after the company exceeded analyst expectations and revised its 2025 revenue outlook upwards. Palo Alto Networks Inc. PANW stock fell over 4% in premarket trading after the company's third-quarter results. Alphabet Inc. GOOG GOOGL stock was slightly down in premarket trading following the U.S. Department of Justice (DOJ) stating that the company needed to sell the Google Chrome browser to end the search monopoly. Investors are eagerly awaiting earnings results from Deere & Company DE, BJ’s Wholesale Club Holdings, Inc. BJ, and Intuit Inc. INTU today.Commodities, Bonds, and Global Equity Markets
Crude oil futures surged in the early New York session, rising by 1.70% to hover around $69.92 per barrel. The 10-year Treasury note yield edged lower to 4.394%. Most of the major Asian markets ended in the red on Thursday, while European markets showed tentativeness in early trading.