TLDR
- Nvidia beat earnings expectations and forecast strong revenue growth for fiscal 2028
- Nvidia stock rose 6% in premarket trading on Thursday
- Nvidia reportedly agreed to buy Hugging Face for $12.9 billion
- S&P 500, Nasdaq 100, and Dow futures all rose following the results
- Salesforce, CrowdStrike, and Okta also beat Wall Street earnings targets
US stock futures climbed on Thursday morning after Nvidia delivered a strong earnings report and pointed to continued growth in AI demand through next year.
Futures on the S&P 500 rose 0.5%, Nasdaq 100 futures jumped around 1%, and Dow Jones Industrial Average futures advanced roughly 0.2%.
Nvidia Beats and Rises in Premarket
Nvidia beat analyst expectations for the second quarter and forecast strong revenue growth for fiscal 2028. The results eased concerns about whether the company could keep up its pace of growth in AI chips.
Nvidia shares rose 6% in premarket trading on Thursday.
On Wednesday night, the Information reported that Nvidia had agreed to acquire Hugging Face, an open-source AI model repository, for $12.9 billion.
CEO Jensen Huang commented on the company’s AI investment strategy, saying the only regret he had was not investing more and sooner in AI labs.
Salesforce, CrowdStrike, and Okta also reported earnings that came in above Wall Street targets, adding to the positive tone in markets.
Deutsche Bank economist Peter Sidorov said the market mood had turned more positive overnight following Nvidia’s results. He added that the revenue outlook signaled greater optimism that AI demand growth would continue into next year.
All three major indexes closed slightly lower on Wednesday in thin trading before the results were released.
Jackson Hole and the Fed in Focus
With Nvidia’s report behind them, investors are now turning their attention to the Federal Reserve’s Jackson Hole Economic Symposium, which kicks off on Thursday.
Fed Chairman Kevin Warsh is set to deliver the keynote address on Friday. Markets will be watching closely for any signals on the direction of interest rate policy.
Bond yields have stabilized after spiking last week. Investors have been weighing the Treasury’s intervention in the bond market and the likelihood that the Fed holds rates steady.
Thursday also brings the release of jobless claims data, which will add to the picture of the current labor market.
Earnings from Dollar General and Dollar Tree are also due Thursday. Discount retailers have drawn higher-income shoppers in recent quarters, and their results may offer insight into the state of consumer spending.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.