US equity futures are trending upwards in premarket trading this Thursday as investors react positively to the impressive Q4 earnings report from chipmaker Nvidia. This robust performance has sparked optimism among traders about future market movements. Notably, the Dow Jones Industrial Average futures saw an increase of 0.2%, while S&P 500 futures gained 0.6%, and Nasdaq futures rose by 0.8%.
Nvidia, a leader in semiconductor manufacturing, experienced a pre-bell surge in its shares by 2.5% after delivering fiscal Q4 results that not only exceeded analyst expectations but also provided an encouraging revenue outlook for Q1. This positive news is expected to fuel further interest in tech stocks as traders assess the broader implications for the market.
In addition to equity futures, oil prices mirrored the bullish sentiment, with the global benchmark for North Sea Brent crude rising by 1.1% to $72.89 per barrel, and the US West Texas Intermediate crude up by 1.2%, settling at $69.43 per barrel. Such increases in oil prices can often signal a strengthening economy, further enhancing trader confidence.
As we look forward, the upcoming release of the Q4 gross domestic product (GDP) figures at 8:30 am ET is anticipated to show no change from the initial estimate of 2.3% annual growth. This stability in GDP is crucial in maintaining investor confidence in the US economy. Moreover, data on new orders for durable goods is also set to be released at the same time, with expectations of a 2% rise in January following a prior decline of 2.2%.
Furthermore, new unemployment claims are projected to increase to 222,000 for the week ending February 22, up from 219,000 in the previous week. These economic indicators will provide valuable insights into consumer spending and labor market conditions, which are often closely watched by investors. In summary, the combination of Nvidia's positive earnings results, rising oil prices, and upcoming economic data suggest a cautiously optimistic outlook for the markets in the near term..