U.S. stock futures are signaling a softer open on Thursday, suggesting markets may retreat after posting solid gains in the previous session.
Investor sentiment has been dampened by Walmart (NYSE:WMT). Although the retailer exceeded fourth-quarter earnings expectations, its profit forecast for the year ahead came in below analysts’ projections, prompting a cautious response from the market.
Rising oil prices are also contributing to the negative tone, as crude continues to climb amid escalating tensions between the United States and Iran and fears of potential military escalation.
That said, futures trimmed some losses following new data from the Labor Department showing that initial jobless claims fell more than anticipated in the week ended February 14.
On Wednesday, stocks surged early in the session before paring gains later in the day. Even after retreating from intraday highs, the major indices still finished comfortably in positive territory.
The Nasdaq advanced 175.25 points, or 0.8%, to 22,753.63. The S&P 500 rose 38.09 points, or 0.6%, to 6,881.31, and the Dow Jones Industrial Average gained 129.47 points, or 0.3%, to 49,662.66.
Early momentum was largely driven by Nvidia (NASDAQ:NVDA), which rallied after announcing a multi-year strategic partnership with Meta (NASDAQ:META) spanning AI infrastructure, cloud systems and on-site computing platforms.
The company said the agreement will enable widespread deployment of its CPUs and millions of Blackwell and Rubin GPUs.
Although Nvidia shares climbed as much as 2.9% during the session, they later eased but still closed up 1.6%.
Micron (NASDAQ:MU) also posted strong gains, rising 5.3% after reports that David Tepper’s Appaloosa Management increased its stake in the semiconductor company by 200%.
Encouraging economic data also supported markets. A Federal Reserve report showed industrial output in January rose more than economists had expected.
However, enthusiasm faded somewhat after the release of minutes from the Fed’s January meeting, which underscored divisions among policymakers regarding the direction of interest rates.
The minutes from the January 27–28 meeting indicated that several participants believed further rate cuts would likely be appropriate if inflation continues to ease in line with projections.
Others suggested it may be suitable to keep rates unchanged for “some time” while assessing additional economic data.
The Fed also noted that a number of policymakers judged that further easing may not be warranted until there is clear evidence that the disinflation process is firmly reestablished.
Additionally, some officials supported a two-sided characterization of the rate outlook, reflecting the possibility that rate hikes could be considered if inflation remains above target.
Sector performance reflected moves in commodity markets. Oil service companies outperformed as crude prices surged, lifting the Philadelphia Oil Service Index by 2.7%.
Gold-related stocks also advanced amid a sharp rise in bullion prices, pushing the NYSE Arca Gold Bugs Index up 2.5%.
Energy producers, financials and transportation stocks also posted gains, while rate-sensitive sectors such as utilities and commercial real estate lagged behind.
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