US stock futures mixed, with more weakness on tech after Nvidia disappoints

US stock index futures were little changed on Thursday, with the tech sector falling after gloomy forecasts from Nvidia Corp. and other companies wobbled after a session of earnings.

How are stock index futures traded?
  • S&P 500 Futures ES00,
    +0.14%
    rose 0.1% to 3,983

  • Dow Jones Industrial Average Futures YM00,
    +0.21%
    rose 70 points, or 0.2%, to 32,147

  • Nasdaq 100 Futures NQ00,
    -0.15%
    fell 0.1% to 11,925

On Wednesday, the Dow Industrials DJIA,
+0.60%
posted its fourth straight session, up 191.66 points, or 0.6%, to 32,120.28. The S&P 500 Index SPX,
+0.95%
rose 1% to 3,978.73, while the Nasdaq Composite COMP,
+1.51%
rose 1.5% to 11,434.74.

What moves the markets?

Investors were hoping to build on Wednesday’s gains, fueled by minutes from the Federal Reserve’s latest meeting, which analysts said signaled the central bank remains open to reconsidering its aggressive rate-hike plans to curb high inflation.

But the Fed hasn’t revealed much that the market didn’t already know, said Stephen Innes, managing partner at SPI Asset Management.

“The risks remain rather restrictive relative to market prices. If the Fed is to interrupt the rerating process at lower levels than previously thought, inflation expectations will have to fall further. In 2018, the Fed’s balance sheet was half what it is today, and companies like Apple weren’t offering a 10 percent pay rise,” he told clients in a statement.

A mixed batch of news from the technology sector left the Nasdaq-100 struggling for direction. Among the losers are shares of Apple Inc. AAPL,
+0.11%
fell 1.4% in premarket trading after Bloomberg reportsciting sources that the iPhone maker plans to flatten production of its flagship this year due to challenges in the industry.

Separately, Apple announced it would raise hourly wages for U.S. workers to $22 an hour, a 45% increase from 2018, to remain competitive in a tight job market and amid efforts by some employees to unionize stay.

Shares of Twitter Inc. TWTR,
+3.91%
Soared 5% in premarket trading after Tesla CEO Elon Musk said in a regulatory filing that he would be relying on equity to fund his $44 billion Twitter deal, rather than a margin loan , which is backed by shares in its electric car maker.

But investors also eyed another batch of weak tech forecasts that came after Wednesday’s close. shares of cloud computing company Nutanix Inc. NTNX,
+2.24%
fell 32% after its poor fourth-quarter outlook.

Nvidia Corp. NVDA,
+5.08%
Shares fell 5% in premarket trading after the chipmaker reported record results but a softer outlook due to China COVID shutdowns and the war in Ukraine. And Snowflake Inc. SNOW,
+2.42%
Shares fell 14% after the software company issued disappointing guidance and reported cautious consumer activity.

On the US data front for Thursday, weekly jobless claims and first-quarter gross domestic product revisions are due at 8:30 a.m. Eastern, followed by pending home sales at 10 a.m. Eastern.

Opinion: More tech companies are experiencing a spring swoon, but there might be a silver lining

Elsewhere, the Treasury yield is TMUBMUSD10Y,
2.724%

TMUBMUSD02Y,
2,464%
slipped, along with dollar DXY,
-0.24%,
as gold GC00,
-0.14%
also slipped and oil CL00,
+0.83%
higher edged.

https://www.marketwatch.com/story/u-s-stock-futures-mixed-with-more-weakness-for-tech-after-nvidia-disappoints-11653561794?rss=1&siteid=rss US stock futures mixed, with more weakness on tech after Nvidia disappoints

Brian Lowry

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