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Stock Futures Rise Slightly After Wall Street’s Nvidia-Led Sell-Off

Stock Futures Rise Slightly After Wall Street’s Nvidia-Led Sell-Off. Source: Scott Beale, CC BY-SA 4.0, via Wikimedia Commons

U.S. stock futures edged higher Thursday night after a sharp decline on Wall Street, driven by Nvidia’s steep losses despite strong earnings. Investors remain cautious ahead of the upcoming PCE inflation report.

S&P 500 Futures rose 0.2% to 5,888.75, Nasdaq 100 Futures climbed 0.4% to 20,678.25, and Dow Jones Futures inched up 0.1% to 43,331.0. Nvidia (NASDAQ: NVDA) plunged 8.5% to $120.15, despite beating earnings estimates, as concerns over narrowing margins and AI chip market challenges weighed on sentiment. Increased production costs tied to the Blackwell chip rollout fueled investor worries.

Tech stocks followed Nvidia’s downturn, dragging the Nasdaq Composite 2.8% lower to 18,544.52. The S&P 500 lost 1.6% to 5,861.70, while the Dow dipped 0.4%. Broadcom (NASDAQ: AVGO) slid 7.1%, and AMD (NASDAQ: AMD) fell 5%. Salesforce (NYSE: CRM) dropped over 4% after issuing a weak revenue forecast.

Economic data signaled a slowdown, with initial jobless claims rising amid layoffs and winter weather disruptions. The U.S. GDP grew at a slower 2.3% annual rate in Q4, down from 3.1% in Q3. Weak services PMI and consumer sentiment data strengthened expectations for 2025 rate cuts, though the Fed is likely to hold rates steady for now.

Investors now await the Fed’s preferred inflation gauge, the PCE price index, set for release Friday. Analysts forecast a 0.3% monthly increase and a 2.5% year-over-year rise, indicating a slowdown in inflation. However, persistent high costs in housing and healthcare continue to pressure consumers.

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