Wall Street was poised for a subdued opening on Thursday, following a record-breaking rally driven by the excitement surrounding artificial intelligence technology. Futures for the Dow Jones Industrial Average were down 0.1% in premarket trading, while futures for the S&P 500 were unchanged.
One of the standout performers ahead of the opening bell was Lululemon Athletica, which surged more than 9% after beating Wall Street’s sales and profit targets in a strong first quarter. Additionally, Vista Outdoors saw an 8% jump after MNC Capital Partners increased its all-cash bid for the outdoor sports and recreation company to $39.50 per share.
However, not all companies fared well. New York software company Sprinklr tumbled more than 22% despite surpassing Wall Street’s first-quarter sales and profit forecasts. The company’s full-year revenue guidance fell short of investor expectations.
Looking ahead, the biggest potential market-moving news is the release of the May jobs report by the U.S. government on Friday. The labor market has shown resilience despite higher interest rates imposed by the Federal Reserve to combat inflation. Analysts expect the Fed to leave rates unchanged at its upcoming meeting next week.
In global markets, European stocks gave back some early gains after the European Central Bank cut its key interest rate. Asian markets were mixed, with Tokyo’s Nikkei 225 climbing 0.6% and Australia’s S&P/ASX 200 gaining 0.7%. Taiwan’s Taiex surged 1.9%, while India’s Sensex added 0.7% following Prime Minister Narendra Modi’s coalition victory in national elections.
In the commodities market, U.S. benchmark crude oil rose to $74.77 per barrel, while Brent crude reached $79.06 per barrel. The U.S. dollar strengthened against the Japanese yen and the euro.
On Wednesday, the S&P 500 and Nasdaq composite set new records, with the total market value of Nvidia surpassing $3 trillion for the first time. Nvidia, a key player in the AI industry, has seen its stock price soar by nearly 150% this year.
Overall, Wall Street remains cautiously optimistic as investors await further developments in the AI sector and economic indicators.
