Traders at the New York Stock Exchange experienced a steady performance in futures on Wednesday night, following a narrow rally in technology stocks that propelled the S&P 500 index to new all-time highs. The trading scene was characterized by modest increases, with S&P futures climbing 0.1% and Nasdaq 100 futures showing an uptick of 0.4%. Meanwhile, futures linked to the Dow Jones Industrial Average gained 105 points, translating to a rise of 0.2%.
A highlight of the evening was Cisco Systems, whose shares soared by 19% in after-hours trading after the company reported third-quarter results that exceeded Wall Street’s forecasts. This positive announcement also included future guidance, albeit alongside plans to reduce its workforce by nearly 4,000 jobs. In contrast, shares of Doximity took a significant hit, falling 18% after the company projected revenue for the ongoing quarter and full year below expectations, coupled with a disappointing earnings result for the fourth quarter.
During the regular trading session earlier that day, both the S&P 500 and the Nasdaq Composite achieved new intraday and closing records. The S&P 500 gained 0.58%, while the tech-oriented Nasdaq rallied by 1.2%. However, the Dow showed a different trend, dipping by 67.36 points or 0.14%.
Investors were also processing a recent inflation report that revealed a 1.4% rise in April’s producer price index — the largest monthly increase since March 2022 and significantly above economists’ expectations. The uptick in inflation concerns regarding higher energy prices had a dampening effect on various market sectors. Nevertheless, technology stocks, especially semiconductor firms like Nvidia and Micron Technology, were pivotal in driving the market rally. This surge was further amplified by Nvidia CEO Jensen Huang’s presence alongside U.S. President Donald Trump during a meeting with Chinese President Xi Jinping in Beijing.
Looking ahead, investor Peter Mallouk provided insights on the chipmaking sector, suggesting that there was still considerable upside potential. On CNBC’s “Power Lunch,” he stated, “This has been, for the most part, a tech-driven long, long, long bull market… This growth is because of expected earnings. It’s not really a speculative bubble.” He emphasized the undervaluation of chipmakers, noting that substantial demand was likely to persist.
As traders prepare for Thursday, they are awaiting earnings reports from notable companies including Honda Motor, Yeti, Viking Holdings, Klarna, Bullish, and Versant Media. Furthermore, market participants will look for critical economic indicators: April’s retail sales figures, export and import price index readings, and initial jobless claims data for the week ended May 9. Additionally, New York Federal Reserve Bank President John Williams will moderate a discussion later in the day, promising valuable insights for investors navigating the current economic landscape.
