Why US Futures Are Lower Thursday – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), NVIDIA (NASDAQ:NVDA), SPDR S&P 500 (ARCA:SPY)

U.S. stocks could open on a negative note on Thursday after AI bellwether Nvidia Corp.’s NVDA guidance fell short of some expectations. Futures of all three major indices were down as investors processed the AI giant’s earnings.

Other chip makers like Qualcomm Inc. QCOM, Intel Corp. INTC, Broadcom Inc. AVGOand Advanced Micro Devices Inc. AMD also experienced pressure in premarket trading.

In premarket trading on Thursday, the SPDR S&P 500 ETF Trust SPY fell 0.25% to $589 and the Invesco QQQ ETF QQQ declined 0.34% to $501.46, according to Benzinga Pro data.

Cues From Last Session:

The Dow Jones snapped its two-session losing streak this week to close 100 points higher on Wednesday, while the S&P 500 eked a marginal gain to close in the green.

The tech-heavy Nasdaq, however, fell ahead of the volatility due to Nvidia’s earnings after the bell.

Crude oil prices continued to rise amid growing tensions between Russia and Ukraine but remained under the $70 mark.

Treasury yields eased slightly as investors waited for further economic data.

On the economic data front, mortgage applications in the U.S. rose 1.7% from the previous week in the week ending Nov. 15, compared to a 0.5% gain in the prior period.

Most sectors on the S&P 500 closed on a positive note, with healthcare, energy, and materials stocks recording the biggest gains on Wednesday.

However, consumer discretionary and financial stocks bucked the overall market trend, closing the session lower.

Insights From Analysts:

Ryan Detrickchief market strategist at Carson Group, maintained that despite the weakness in the markets currently, he remains optimistic about the potential of a continued bull run.

“Weakness right around now is perfectly normal. The good news is I wouldn’t give up on a late November rally.”

Despite the volatile movement in Nvidia and other chipmaker stocks, Wedbush analyst Dan Ives maintained optimism about the AI giant’s performance.

“The Godfather of AI Jensen and Nvidia delivered a massive beat and big things ahead for Blackwell,” Ives said.

Nvidia posted third-quarter revenue of $35.1 billion, up 94% year-on-year, beating the Street consensus of $33.12 billion, according to data from Benzinga Pro. This was the ninth straight quarter of Nvidia beating analyst estimates.

Tech bull Ives thinks that this is the “fourth revolution” in technology, and it could help the Nasdaq surge to 25,000.

See Also: How To Trade Futures

Upcoming Economic Data

Thursday’s economic calendar includes the release of initial jobless claims data.

• Initial jobless claims data will be released at 8:30 a.m. ET.
• Philadelphia Fed manufacturing survey will be released at 8:30 a.m. ET.
• Cleveland Fed President Beth Hammack will speak at 8:45 a.m. ET.
• Existing home sales data and leading economic index will be released at 10 a.m. ET.
• Kansas City Fed President Jeff Schmid will speak at 1:10 p.m. ET.
• Fed Vice Chair for Supervision Michael Barr will speak at 4:40 p.m. ET.

Stocks In Focus:

• Nvidia Corp. NVDA shares fell 2.6% in premarket trading on Thursday after the company posted a quarter-on-quarter decline in gross margins.
• Other chip stocks felt the pressure post-Nvidia earnings. Qualcomm Inc. QCOM fell nearly 1%, while Intel Corp. INTC was down 0.6%. Broadcom Inc. AVGO and Advanced Micro Devices Inc. AMD both fell 0.5% in premarket trading.
• MicroStrategy Inc. MSTR stock surged over 10% on Wednesday and rose by another 11% in premarket trading on Thursday after Bitcoin BTC/USD crossed the $95,000 mark. Robinhood Markets Inc. HOOD stock was also up over 3%.
• Snowflake Inc. SNOW shares rose over 21% in premarket trading after the company beat analyst expectations and revised its 2025 revenue outlook upwards.
• Palo Alto Networks Inc. PANW stock fell over 4% in premarket trading after the company’s third-quarter results.
• Alphabet Inc. GOOG GOOGL stock was slightly down in premarket trading after the U.S. Department of Justice (DOJ) said the company needed to sell the Google Chrome browser to end search monopoly.
• Investors are awaiting earnings results from Deere & Company OF, BJ’s Wholesale Club Holdings, Inc. BJand Intuit Inc. INTU today.

Commodities, Bonds And Global Equity Markets:

Crude oil futures surged in the early New York session, rising by 1.70% to hover around $69.92 per barrel.

The 10-year Treasury note yield edged lower to 4.394%.

Most of the major Asian markets ended in the red on Thursday, while European markets showed tentativeness in early trading.

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Photo courtesy: Wikimedia