US stock futures displayed mixed signals Thursday night after a notable shift on Wall Street, where the rotation into value and cyclical stocks drove both the Dow and S&P 500 to record highs. Specifically, Dow futures gained approximately 0.2%, suggesting the blue-chip index was poised to extend its record closing position. In contrast, S&P 500 futures saw little movement, trading near flat, while Nasdaq 100 futures experienced a slight decline of about 0.1%.
The overarching sentiment on Wall Street appears optimistic as investors approach the week’s conclusion, with all three major indexes aiming for weekly gains. This activity comes as market participants consider potential actions from the central bank leading into 2026. Thursday’s trading session marked a notable shift as investors began to sell off stocks from high-growth companies, particularly those benefiting from advancements in artificial intelligence (AI). This pivot followed the Federal Reserve’s announcement of its third interest rate cut of the year on Wednesday, signaling a change in economic policy.
During the session, both the Dow and S&P 500 closed at record highs, while the Nasdaq Composite lagged. A key player in this rally was Oracle (ORCL), whose disappointing earnings report amplified concerns surrounding AI investments, contributing to declines among major tech companies such as Google (GOOG) and Nvidia (NVDA). Conversely, the Dow’s substantial rise, nearly 650 points, was significantly supported by soaring shares of Visa (V), alongside solid performances from Nike (NKE) and UnitedHealth Group (UNH).
As the trading day progressed, Broadcom (AVGO) saw its shares fall nearly 5% in after-hours trading, despite the company surpassing fiscal fourth-quarter estimates and offering an optimistic outlook that included a projection of doubled revenue from AI-related chips. On a positive note, Lululemon (LULU) experienced a significant surge of approximately 10% following the announcement that CEO Calvin McDonald would step down at the end of January, subsequent to a period of lackluster performance.
As the earnings season approaches its conclusion, the calendar holds little of note for the upcoming week, although noteworthy earnings reports from Nike (NKE) and Micron Technology (MU) are highly anticipated. Looking ahead, market stakeholders are eager for insights into future stock market trends following a dynamic week.
