Futures Pointing To Modestly Higher Open On Wall Street

The major U.S. index futures are currently pointing to a modestly higher open on Friday, with stocks poised to add to the substantial gains posted in the previous session.

Stocks may continue to benefit from the upward momentum sparked by AI darling Nvidia’s (NVDA) upbeat earnings news, which propelled the Dow and S&P 500 to record highs on Thursday.

Overall trading activity may be somewhat subdued, however, as traders take a breather following yesterday’s surge.

A lack of major U.S. economic data may also keep some traders on the sidelines ahead of the release of several key reports next week.

The Commerce Department’s report on personal income and spending is likely to be in focus next week, as it includes readings on inflation said to be preferred by the Federal Reserve.

Traders are also likely to keep an eye on reports on durable goods orders, new home sales, consumer confidence and manufacturing activity.

Stocks showed a substantial move to the upside during trading on Thursday, with the Dow and the S&P 500 reaching new record closing highs. The tech-heavy Nasdaq had also been poised to set a record closing high but ended the day just shy of its November 2021 levels.

The major averages held on to strong gains going into the close, ending the sharply higher. The Nasdaq skyrocketed 460.75 points or 3.0 percent to 16,041.62, the S&P 500 surged 105.23 points or 2.1 percent to 5,087.03 and the Dow jumped 456.87 points or 1.2 percent to 39,069.11.

The rally on Wall Street largely reflected a positive reaction to the earnings news from Nvidia , with the chipmaker spiking by 16.4 percent to a record closing high.

Nvidia soared after reporting better than expected fourth quarter results amid strong demand for its chips to power artificial intelligence. The company also provided upbeat revenue guidance.

Shares of Nvidia have skyrocketed this year amid optimism about demand for its AI chips, and traders had been questioning whether its results would support further upside.

Ahead of the earnings news, Danni Hewson, head of financial analysis at AJ Bell said Nvidia’s results could be “make or break time for markets” and said the company needed to “smash it out of the park and show that the AI boom still has momentum.”

In U.S. economic news, a report released by the Labor Department showed an unexpected dip in first-time claims for U.S. unemployment benefits in the week ended February 17th.

The Labor Department said initial jobless claims fell to 201,000, a decrease of 12,000 from the previous week’s revised level of 213,000.

Economists had expected jobless claims to rise to 218,000 from the 213,000 originally reported for the previous week.

The National Association of Realtors also released a report showing a significant rebound in existing home sales in the month of January.

Semiconductor stocks skyrocketed on the heels of the upbeat Nvidia earnings, with the Philadelphia Semiconductor Index soaring by 5.0 percent to a record closing high.

Substantial strength was also visible among computer hardware stocks, as reflected by the 4.8 percent spike by the NYSE Arca Computer Hardware Index.

Software and networking stocks also saw considerable strength, contributing to the surge by the tech-heavy Nasdaq.

Outside the tech sector, retail, transportation and pharmaceutical stocks moved notably higher, while gold and telecom stocks moved to the downside.

Commodity, Currency Markets

Crude oil futures are tumbling $1.44 to $77.17 a barrel after climbing $0.70 to $78.61 a barrel on Thursday. Meanwhile, after slipping $3.60 to $2,030.70 an ounce in the previous session, gold futures are inching up $4.30 to $2,035 an ounce.

On the currency front, the U.S. dollar is trading at 150.41 yen versus the 150.53 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0830 compared to yesterday’s $1.0823.

Asia

Asian stocks rose broadly in thin trading on Friday, with Japanese markets closed for a public holiday.

While a rally on Wall Street to record closing highs boosted sentiment, potential gains were capped by heightened geopolitical tensions, hawkish comments from a Federal Reserve official and signs that China’s real-estate downturn is getting worse.

Israeli Prime Minister Benjamin Netanyahu’s war cabinet has agreed to send a negotiating team to Gaza for truce talks taking place in Paris amid growing tensions in the Middle East.

The dollar held steady after Federal Reserve Governor Christopher Waller said Thursday he would need “at least another couple more months” of data before deciding to cut interest rates.

Gold was set for a weekly gain, while oil prices dipped slightly and were set to close the week a tad lower on demand concerns.

China’s Shanghai Composite Index rose 0.6 percent to 3,004.88 after data showed home prices declined at a slower pace for both new and existing units in January. Hong Kong’s Hang Seng Index ended 0.1 percent lower at 16,725.86 after a choppy session.

Seoul stocks edged up slightly, with the Kospi rising 0.1 percent to 2,667.70 following an overnight rally on Wall Street, driven by growth and technology stocks.

Australian markets ended modestly higher as financials gained ground ahead of key inflation data due next week. Tech stocks also surged, with Block soaring 16.5 percent to reach its highest level since last August.

The benchmark S&P/ASX 200 Index rose 0.4 percent to 7,643.60, while the broader All Ordinaries Index settled 0.4 percent higher at 7,899.20.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index inched up 0.3 percent to 11,719.82 despite retail sales chalking in an eighth consecutive month of declining retail volumes.

Europe

European stocks are modestly higher on Friday as investors react to hawkish comments from a Federal Reserve official and a slew of mixed regional data.

The euro remained slightly above the $1.08 level in a narrow range after data showed the German economy contracted as estimated in the fourth quarter on weaker investment.

Gross domestic product slid 0.3 percent sequentially after stagnating in the third quarter, according to revised data from Destatis.

The headline German IFO business climate index improved to 85.5 in February from the January print of 85.2.

Elsewhere, survey data from GfK showed that U.K. consumer confidence dropped in February on weak economic conditions.

The consumer sentiment index fell to -21 in February from -19 in January. The score was seen at -18.

While the French CAC 40 Index has advanced by 0.7 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both up by 0.1 percent.

Standard Chartered has moved sharply higher in London. The lender announced a $1 billion share buyback after posting quarterly earnings that beat estimates.

Meanwhile, Swiss engineering company ABB has moved to the downside after it named Morten Wierod as its new CEO.

Aerospace and defense group Chemring has also slid after keeping expectations for fiscal 2024 performance unchanged.

German insurer Allianz ha also moved lower after its fourth quarter profit came in slightly below expectations.

Deutsche Telekom has also fallen as it reported a loss of 1.035 billion euros or 0.21 euros per share for the fourth quarter.

U.S. Economic Reports

No major U.S. economic data is scheduled to be released today.

Stocks In Focus

Shares of Carvana (CVNA) are skyrocketing in pre-market trading after the used car care retailer reported its first-ever annual profit and provided upbeat earnings guidance for the current quarter.

Entertainment company Live Nation (LYV) is also likely to see initial strength after reporting better than expected fourth quarter revenues.

On the other hand, shares of Booking Holdings (BKNG) may come under pressure after the online travel company reported better than expected fourth quarter results but provided disappointing first quarter guidance.