On Thursday, stock futures increased as traders considered chipmaker Nvidia’s earnings and anticipated Federal Reserve actions.
The Dow Jones Industrial Average futures rose 79 points, or 0.2%. Nasdaq-100 futures increased by 0.7%, while S&P 500 futures increased by 0.4%.
Nvidia helped Nasdaq futures by rising more than 8% in response to better-than-anticipated fourth quarter results and revenue.
The S&P 500 experienced its fourth consecutive losing session on Wednesday, falling 0.2%. While the Nasdaq Composite saw a slight gain, the Dow also declined.
The actions followed the Federal Reserve’s publishing of the minutes from its most recent meeting, which ended on February 1. The minutes revealed that the members of the central bank are adamant about continuing to fight inflation by raising interest rates.
According to the minutes, the labor market “remained highly tight, adding to ongoing upward pressures on wages and prices” and inflation “remained far over” the Fed’s 2% target.
Bill Adams, chief economist at Comerica Bank, stated that “the Fed is determined to free up some slack in the labor market, to guarantee that inflation doesn’t stay entrenched at its current high level.” “Year-over-year CPI inflation is expected to have decreased to below the federal funds rate by mid-2023. The Fed may raise interest rates more than expected, though, if inflation continues to surprise to the upside or if the jobless rate declines further.
On Thursday morning, other consumer earnings reports are expected, including those from Alibaba, Papa John’s, Wayfair, and Bath & Body Works. Investors will hear from companies like Carvana, Block, Warner Bros. Discovery, and Beyond Meat after the bell.
In terms of economic data, traders are anticipating the publication of the most recent GDP and weekly unemployment claims statistics on Thursday at 8:30 a.m. ET.
Also, Raphael Bostic, president of the Atlanta Fed, will deliver a speech at a gathering held by the Atlanta Fed on Thursday morning. In the afternoon, Mary Daly, president of the San Francisco Fed, will participate in a fireside conversation.