U.S. stock index futures experienced a slight decline in the evening on Thursday following record highs on Wall Street, driven primarily by positive earnings and guidance from AI standout NVIDIA Corporation (NASDAQ: NVDA).
Investors largely overlooked Federal Reserve warnings about prolonged higher interest rates, bolstered by stronger-than-expected jobless claims data.
Despite the tech gains, weak purchasing managers index readings for February indicated a potential worsening of business activity in the world's largest economy.
S&P 500 Futures dropped 0.1% to 5,094.75 points, Nasdaq 100 Futures fell 0.1% to 18,025.50 points, and Dow Jones Futures declined 0.1% to 39,100.0 points by 19:49 ET (00:49 GMT).
The modest easing in futures suggests that Wall Street may see some profit-taking after a robust rally during the week.
The S&P 500 reached a record-high of 5,087.03 points, the Dow Jones Industrial Average rose to a record-high of 39,069.11 points, and the NASDAQ Composite surged nearly 3% to a record high of 16,041.62 points on Thursday.
Tech stocks, led by Nvidia, were the top performers. Nvidia extended gains in aftermarket trading, reaching a record high of $798.00, indicating strong demand for artificial intelligence.
However, caution crept into the market during aftermarket trading due to concerns about higher U.S. interest rates, especially considering stretched valuations.
Major tech stocks, including Alphabet Inc (NASDAQ: GOOGL), Microsoft Corporation (NASDAQ: MSFT), and Meta Platforms Inc (NASDAQ: META), traded in a flat-to-low range after strong gains during the session.
Market anxiety persisted over the Fed's stance on keeping interest rates higher for an extended period, as reflected in the minutes of the late-January meeting.
Fed members echoed this sentiment, citing concerns about persistent inflation and labor market strength. Strong labor data, highlighted by an unexpected drop in weekly jobless claims on Thursday, added to the uncertainty.
In after-hours trading, Carvana Co (NYSE: CVNA) surged over 20% after forecasting core earnings well above $100 million in the first quarter. Payments firm Block Inc (NYSE: SQ) rose 11% following better-than-expected quarterly revenue and an increased annual operating profit outlook.
Aerospace firm Intuitive Machines Inc (NASDAQ: LUNR) rallied up to 50% after its Odysseus lunar lander successfully touched down on the moon, marking the first private craft and the first U.S. craft on the moon since 1972.
Paraphrasing text from "Investing" all rights reserved by the original author.
