After Nvidia’s blockbuster estimate, Nasdaq futures rose more than 1% on Thursday as debt ceiling talks progressed.
Nvidia Corp (NVDA.O), the world’s most valuable chip maker, rose 24% premarket. Wall Street’s fifth-most valuable corporation.
The chipmaker estimated current-quarter sales of more than 50% over Wall Street projections. It said it was increasing supplies to meet the rising demand for its artificial intelligence chips in ChatGPT and other services.
Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O) rallied 1.9% and 2.0%, respectively, following their lead.
AMD.O, MU.O, and AVGO.O also gained between 1.9% and 8.9%.
Intel Corp (INTC.O) declined 0.7%.
Wall Street’s main indexes have fallen sharply in the previous two days and are poised for their worst week in more than two months as investors await an agreement to extend the $31.4 trillion debt ceiling or face a catastrophic default.
As the June 1 deadline approached, Democratic President Joe Biden and top House Republican Kevin McCarthy held constructive talks on Wednesday.
Market concern was raised in early June U.S. Treasury note yields above 7%.
Two-year rates reached their highest since March after Fitch placed the US on credit alert for a downgrade.
At 4:53 a.m. ET, Dow e-minis were down 77 points, 0.23%, S&P 500 e-minis were up 23.25 points, 0.56%, and Nasdaq 100 e-minis were up 226.5 points, 1.66%.