US stock futures were mixed early Thursday as renewed uncertainty surrounding Nvidia’s leadership threatened to interrupt Wall Street’s recovery.
Nasdaq-100 futures fell over 170 points, or 0.63%, while S&P 500 futures declined 0.31%. Dow futures edged higher in overnight trading.
The cautious sentiment followed Wednesday’s rebound, when the S&P 500 gained 1.3%, the Nasdaq advanced 1.6% and the Dow rose 0.5%.
5 things to know before Wall Street opens
1. Nvidia’s leadership uncertainty unsettles global technology stocks
Nvidia shares plunged more than 8% in Wednesday’s extended trading after reports that its board was considering removing founder and CEO Jensen Huang.
The reported leadership crisis threatens to disrupt the recovery in semiconductor shares, which had helped lift US markets during Wednesday’s session.
The uncertainty spread across Asian technology markets on Thursday, with Taiwan’s benchmark index falling approximately 2.8%.
2. Treasury yields and Fed rate expectations remain in focus
Wall Street continues to assess the consequences of Tuesday’s stronger-than-expected US inflation report.
October consumer prices increased 0.4% month-on-month, exceeding economists’ forecast of 0.3%. Core inflation also rose 0.3%, above the expected 0.2%.
The figures prompted traders to increase expectations that the Federal Reserve could raise interest rates at its December meeting.
The benchmark 10-year Treasury yield approached 5% on Tuesday, while the dollar strengthened as investors adjusted their monetary policy forecasts.
3. US jobless claims and housing data could shift market expectations
Investors face two important economic releases on Thursday that could provide fresh evidence about the strength of the US economy.
Weekly initial jobless claims are scheduled for 8:30 a.m. ET. Economists expect approximately 195,000 new applications, compared with 189,000 the previous week.
October existing-home sales are due at 10 a.m. ET, offering another assessment of housing demand amid elevated mortgage rates and affordability pressures.
Stronger economic readings could reinforce expectations that interest rates will remain elevated.
4. Oil prices rebound as geopolitical risks counter supply concerns
Oil prices reversed early losses on Thursday as persistent Middle East tensions complicated expectations of an easing global supply outlook.
Brent crude rose 0.49% to $93.21 a barrel by 07:32 GMT, while West Texas Intermediate gained 0.31% to $86.80.
Both benchmarks had fallen more than $1 earlier in the session.
Investors are weighing higher OPEC+ production against continuing disruptions around the Strait of Hormuz and uncertainty surrounding US-Iran negotiations.
5. Cisco and Applied Materials earnings put technology spending to the test
Investors will turn their attention to Cisco Systems and Applied Materials, which are scheduled to report quarterly results after Thursday’s closing bell.
Cisco’s earnings will provide insight into enterprise networking demand, including spending on infrastructure supporting artificial intelligence.
Applied Materials will offer a separate perspective on semiconductor manufacturing investment and demand for advanced chipmaking equipment.
The results follow a strong Wednesday rally in AI infrastructure stocks, led by CoreWeave’s nearly 25% surge after its latest earnings.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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