Upbeat Nvidia Earnings May Lead To Initial Strength On Wall Street

The major U.S. index futures are currently pointing to initial strength on Wall Street on Thursday, with stocks likely to see further upside after ending the previous session mostly higher but well off their best levels

The markets are likely to benefit from a positive reaction to earnings news from Nvidia (NVDA), as the AI darling and market leader is jumping by 1.7 percent in pre-market trading.

The advance by Nvidia comes after the company reported better than expected fourth quarter results and provided upbeat revenue guidance for the current quarter.

Buying interest may be somewhat subdued, however, as concerns about President Donald Trump’s threatened tariffs continue to weigh on sentiment.

Traders are also digesting the latest batch of U.S. economic data, including a Labor Department report showing first-time claims for U.S. unemployment benefits climbed much more than expected in the week ended February 22nd.

The report said initial jobless claims rose to 242,000, an increase of 22,000 from the previous week’s revised level of 220,000.

Economists had expected initial jobless claims to inch up to 221,000 from the 219,000 originally reported for the previous month.

While the report could add to recent concerns about the economic outlook, the data may also generate renewed optimism about potential interest rate cuts.

A separate report released by the Commerce Department showed durable goods orders surged by much more than expected in January, although the growth was largely due to a spike in volatile orders for transportation equipment.

Stocks showed a strong move to the upside early in the session on Wednesday but gave back ground over the course of the trading day. The major averages pulled back well off their highs of the session, although the Nasdaq and the S&P 500 managed to close in positive territory.

After surging by as much as 1.3 percent, the tech-heavy Nasdaq ended the day up 48.88 points or 0.3 percent to 19,075.26. The S&P 500 eked out a more modest gain, inching up 0.81 points or less than a tenth of a percent to 5,956.06, while the narrower Dow bucked the uptrend and slid 188.04 points or 0.4 percent to 43,433.12.

The early strength on Wall Street partly reflected bargain hunting following recent weakness, which saw the Nasdaq and the S&P 500 close lower for four straight sessions.

The tech-heavy Nasdaq tumbled to its lowest closing level in three months on Tuesday, while the S&P 500 fell to a one-month closing low.

Buying interest waned over the course of the session, however, as traders expressed caution ahead of the earnings news from Nvidia.

The pullback by stocks also came after President Donald Trump reiterated he is “not stopping” previously delayed tariffs on Canada and Mexico.

While a 30-day pause on those tariffs is set to expire on March 4th, Trump indicated the tariffs would take effect on April 2nd, the same day he purportedly plans to announce reciprocal tariffs on other U.S. trade partners.

In U.S. economic news, the Commerce Department released a report showing a substantial pullback by new home sales in the U.S. in the month of January.

The Commerce Department said new home sales plunged by 10.5 percent to an annual rate of 657,000 in January after spiking by 8.1 percent to an upwardly revised rate of 734,000 in December.

Economists had expected new home sales to slump by 2.6 percent to an annual rate of 680,000 from the 698,000 originally reported for the previous month.

Networking stocks saw substantial strength on the day, with the NYSE Arca Networking Index surging by 2.8 percent after ending the previous session at its lowest closing level in over a month.

Significant strength was also visible among semiconductor stocks, as reflected by the 2.1 percent jump by the Philadelphia Semiconductor Index.

Computer hardware, gold and brokerage stocks also saw notable strength, while housing stocks came under pressure over the course of the session.

Commodity, Currency Markets

Crude oil futures are climbing $0.71 to $69.33 a barrel after falling $0.31 to $68.62 a barrel on Wednesday. Meanwhile, after rising $11.80 to $2,930.60 an ounce in the previous session, gold futures are tumbling $31.90 to $2,898.70 an ounce.

On the currency front, the U.S. dollar is trading at 149.74 yen versus the 149.10 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0449 compared to yesterday’s $1.0485.

Asia

Asian shares ended mixed on Thursday as U.S. President Donald Trump floated a 25 percent “reciprocal” tariff on European cars and other goods and signaled another month-long extension for looming levies on Canada and Mexico.

U.S. Commerce Secretary Howard Lutnick clarified that the “big transaction” would be April 2, but the “fentanyl-related” tariffs would be re-evaluated at the end of the 30-day pause on March 4, stoking uncertainty.

China’s Shanghai Composite Index rose 0.2 percent to 3,388.06 after a choppy session as investors braced for the National People’s Congress next week.

Hong Kong’s Hang Seng Index dipped 0.3 percent to 23,718.29 as a tech-driven rally took a breather following Nvidia’s upbeat earnings forecast and amid concerns over U.S. tariffs on semiconductors and key exports.

Japanese markets eked out modest gains as a weaker yen helped lift export-related stocks. The Nikkei 225 Index rose 0.3 percent to 38,256.17, while the broader Topix Index settled 0.7 percent higher at 2,736.25.

Shares of convenience store operator Seven & i Holdings plummeted 11 percent after the founding Ito family failed to secure financing for a $58 billion management buyout.

Seoul stocks fell notably, with the Kospi ending down 0.7 percent at 2,621.75. Chipmaker SK Hynix, a main supplier for Nvidia, dropped 1.9 percent and automaker Hyundai Motor lost 2.2 percent on Trump’s tariff threats.

Australian markets closed higher, led by mining and gold stocks. The benchmark S&P/ASX 200 Index closed up 0.3 percent at 8,268.20 after RBA Deputy Governor Andrew Hauser said policymakers expect to receive more good news on inflation before removing the restrictiveness of policy.

The broader All Ordinaries Index closed up 0.3 percent at 8,506.10. Qantas Airways surged 5.6 percent as the airline reported strong half-year earnings and announced its first post-pandemic dividend.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index jumped 0.7 percent to 12,540.87, extending gains from the previous session.

Europe

European stocks have moved lower on Thursday following U.S. President Donald Trump’s ambiguous tariff threats against Europe and amid confusion over the timing of planned duties on Canada and Mexico.

The German DAX Index is down by 0.8 percent and the French CAC 40 Index is down by 0.3 percent, although the U.K.’s FTSE 100 Index has bucked the downtrend and inched up by 0.2 percent.

Advertising group WPP has moved sharply lower after forecasting sales would remain flat or shrink this year.

Insurer AXA has also declined after it estimated losses from the California wildfires of around €100 million before tax and net of reinsurance.

German wind turbine maker Nordex SE has also fallen despite posting full-year core earnings above analysts’ estimates.

Italian energy major ENI has also moved to the downside after its fourth quarter earnings fell short of market expectations.

On the other hand, shares of Nivea maker Beiersdorf AG have rallied after the company announced a new share buyback program.

Rolls Royce shares have also soared. The British aerospace giant upgraded forecasts after posting stronger-than-expected full-year earnings.

French utility Engie SA has also shown a substantial move to the upside after upgrading its 2025 guidance.

Swiss Re has also jumped after reporting strong 2024 earnings and backing its guidance for the year ahead.

U.S. Economic News

Reflecting a substantial rebound by orders for transportation equipment, the Commerce Department released a report on Thursday showing new orders for U.S. manufactured durable goods surged by more than expected in the month of January.

The Commerce Department said durable goods orders shot up by 3.1 percent in January after tumbling by a revised 1.8 percent in December.

Economists had expected durable goods orders to jump by 2.0 percent compared to the 2.2 percent slump that had been reported for the previous month.

Excluding the sharp increase in orders for transportation equipment, durable goods orders were unchanged in January after inching up by 0.1 percent in December. Ex-transportation orders were expected to rise by 0.3 percent.

The Labor Department also released a report on Thursday showing first-time claims for U.S. unemployment benefits climbed much more than expected in the week ended February 22nd.

The report said initial jobless claims rose to 242,000, an increase of 22,000 from the previous week’s revised level of 220,000.

Economists had expected initial jobless claims to inch up to 221,000 from the 219,000 originally reported for the previous month.

The Labor Department said the less volatile four-week moving average also crept up to 224,000, an increase of 8,500 from the previous week’s revised average of 215,500.

A separate report released by the Commerce Department on Thursday showed the U.S. economy grew in line with its preliminary estimate in the fourth quarter of 2024.

The Commerce Department said gross domestic product jumped by 2.3 percent in the fourth quarter, unchanged from the previous estimate. Economists had expected the pace of GDP growth to be unrevised.

The report said upward revisions to government spending and exports were offset by downward revisions to consumer spending and investment.

The fourth quarter GDP growth reflects a notable slowdown compared to the 3.1 percent surge seen in the third quarter of 2024.

Kansas City Federal Reserve President Jeffrey Schmid is due to speak on monetary policy and the economic outlook before a U.S. Department of Agriculture 101st Agricultural Outlook Forum, “Meeting Tomorrow’s Challenges, Today,” at 9:15 am ET.

At 10 am ET, the National Association of Realtors is scheduled to release its report on pending home sales in the month of January. Pending home sales are expected to slump by 1.3 percent in January after plunging by 5.5 percent in December.

Federal Reserve Vice Chair for Supervision Michael Barr is also due to speak on “Novel Activity Supervision” at the the Bank and Fintech Arrangements TechSprint event at 10 am ET.

At 11:45 am ET, Federal Reserve Board Governor Michelle Bowman is scheduled to speak on “Community Banking” at the Fort Hays State University Robbins Banking Institute Lecture Series.

Cleveland Federal Reserve President Beth Hammack is due speak on “Financial Stability” before the Columbia University/Bank Policy Institute: 2025 Bank Regulation Research Conference at 1:15 pm ET.

At 3:15 pm ET, Philadelphia Federal Reserve President Patrick Harker is scheduled to speak on the economic outlook before the Lyons Economic Forecast, presented by the University of Delaware’s Center for Economic Education and Entrepreneurship.