The U.S. stock market is poised for a positive opening thanks to a strong earnings report from chipmaker Nvidia, even though it fell short of the sky-high expectations set by investors.
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Futures for the S&P 500 rose 0.2% before Thursday’s opening bell, while futures for the Dow Jones Industrial Average gained 0.3%.
Nvidia: The Chip Giant Faces Pressure Amid High Expectations
Nvidia’s latest sales and profit report once again surpassed analysts’ predictions, but its shares dipped slightly, less than 1%, ahead of the market’s opening. Stephen Innes, managing partner at SPI Asset Management, suggested that the market reaction was partly influenced by how investors had positioned themselves before the quarterly results were released.
Nvidia’s stock has nearly tripled this year, creating immense pressure on the company to continue exceeding Wall Street’s lofty expectations.
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Alphabet Faces Pressure from U.S. Government
Shares of Alphabet, Google’s parent company, also dipped less than 1% after U.S. regulators asked a judge to force the tech giant to sell its Chrome web browser. In a 23-page filing on Wednesday, the Department of Justice called for sweeping measures, including restrictions preventing Google’s Android from favoring its own search engine.
While regulators stopped short of demanding Google sell Android, they left the door open to such a move if further misconduct is detected by the company’s oversight committee.
Oil Prices Surge Amid Escalating Russia-Ukraine Conflict
U.S. crude prices have risen 5% this week, surpassing $70 per barrel on Thursday as the war in Ukraine escalates. Following the Biden administration’s decision to allow Ukraine to use American-made ATACMS long-range missiles against Russia, President Vladimir Putin announced a revised nuclear doctrine. The new policy lowers the threshold for Russia to deploy nuclear weapons, permitting their use in response to a conventional attack supported by a nuclear power.
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Global Market Movements: Mixed Performance Across Regions
In Europe, France’s CAC 40 fell 0.3%, while Germany’s DAX and the UK’s FTSE 100 both gained 0.3%.
In Asia, Japan’s Nikkei 225 dropped 0.9% to 38,026.17 as shares of semiconductor equipment maker Advantest Corp. fell 1.6%, and chipmaker Tokyo Electron declined 0.4%.
Australia’s S&P/ASX 200 slipped 0.1% to 8,323.00. South Korea’s Kospi inched down less than 0.1% to 2,480.63. Hong Kong’s Hang Seng fell 0.5% to 19,601.11, while China’s Shanghai Composite was relatively flat, rising less than 0.1% to 3,370.40.
Energy and Currency Movements
U.S. crude oil prices climbed $1.35 to $70.10 per barrel, while Brent crude, the global benchmark, rose $1.32 to $74.13 per barrel.
The U.S. dollar weakened slightly, falling to 154.49 Japanese yen from 155.31 yen. The euro edged up to $1.0549 from $1.0546.
Other Headlines: Bitcoin Hits Record High, Adani Faces Fraud Charges
Bitcoin surged to $97,550 early Thursday after surpassing $98,000 for the first time.
Meanwhile, shares of Adani Enterprises, part of India’s Adani Group, plunged 23% on Thursday following federal charges against founder Gautam Adani. The U.S. accused Adani of securities fraud and conspiracy to commit wire and securities fraud. The billionaire allegedly concealed details about a massive solar energy project in India linked to a bribery scheme.
Despite global market volatility, strong earnings reports from companies like Nvidia and Deere & Co. are providing hope for positive momentum in the U.S. stock market in the coming sessions.
