Stock futures were relatively stable on Thursday evening, following a turbulent day for the Dow Jones Industrial Average, which experienced its worst session in over a year. Futures tied to the Dow were mostly flat, with S&P 500 futures slightly up and Nasdaq 100 futures slightly down. Intuit shares declined by 7% in after-hours trading due to soft guidance for the current quarter, while Ross Stores saw a jump in its stock price after beating expectations for the first quarter.
Chipmaker Nvidia made headlines during Thursday’s session, with its stock soaring over 9% following strong guidance and an earnings beat, as well as news of a 10-for-1 stock split. Nvidia’s performance in the market is closely watched as it is considered a bellwether for the broader market and is part of the “Magnificent Seven” tech stocks. However, despite Nvidia’s success, over 400 stocks in the S&P 500 closed lower, leading to overall market losses of 0.74% for the S&P 500, 0.39% for the Nasdaq Composite, and 1.53% for the Dow, which was weighed down by a drop in Boeing’s stock price.
Market experts attribute the decline in stock prices to concerns over inflation and the lack of progress in addressing it. The Federal Reserve expressed worries about inflation at its latest meeting, leading investors to believe that rate cuts are less likely. Strong economic data released on Thursday, including surpassing forecasts for May services and manufacturing data and lower-than-expected initial jobless claims for the week ending May 18, further reinforced this belief. As a result, the S&P 500 is on track for a weekly loss of 0.7%, the Dow for a loss of 2.4%, and the Nasdaq for a modest gain of 0.3%.
Looking ahead to Friday, traders will be paying attention to April’s durable goods report and the University of Michigan’s consumer sentiment index for May. These reports will provide further insight into the state of the economy and may impact market movements. Despite the recent market volatility, experts remain cautiously optimistic about the long-term outlook, with some attributing the recent dips to a natural pause in trading activity ahead of a long holiday weekend. Ultimately, the market will continue to be influenced by factors such as inflation concerns, economic data, and company performance in the coming weeks.
