U.S. stock futures edged lower on Thursday as investors weighed another blockbuster earnings report from artificial intelligence leader Nvidia (NASDAQ:NVDA) while continuing to track diplomatic developments surrounding the conflict between the United States and Iran.
By 03:32 ET, Dow futures had slipped 112 points, or 0.2%, while S&P 500 futures fell 19 points and Nasdaq 100 futures dropped 126 points. The weaker tone followed a rebound on Wall Street in the previous session, when equities recovered after three straight days of declines amid growing optimism over a potential peace agreement between Washington and Tehran. Softer oil prices also helped ease pressure on U.S. Treasury yields and improved overall market sentiment.
Minutes from the Federal Reserve’s April meeting showed policymakers remain concerned about inflation risks. Strategists at BCA Research noted that most officials believe “further policy tightening could become necessary if inflation continues running persistently above 2%.” Despite these concerns, investor focus has increasingly shifted back toward the momentum surrounding artificial intelligence and technology growth following Nvidia’s latest results.
Nvidia delivers another blowout quarter
Nvidia once again underlined its dominance in the AI sector after reporting quarterly revenue of US$81.6 billion, up 85% from a year earlier and ahead of analyst forecasts. Net income rose to US$58.3 billion, more than tripling year-on-year and comfortably surpassing Wall Street expectations.
Chief executive Jensen Huang pointed to what he described as the arrival of the “age of agentic AI,” saying demand had become “parabolic” as companies increasingly adopt systems capable of independently performing tasks on behalf of users.
Wedbush analysts said Nvidia continues to control the semiconductor landscape, writing that the company remains the central force in the market while “everyone else is effectively paying rent as governments and corporations queue up for Nvidia chips.”
Despite the strong numbers, Nvidia shares traded little changed in premarket activity after analysts cited by Reuters observed that the company’s guidance excluded China-related revenue and only modestly exceeded expectations. Market watchers also noted that Nvidia faces extraordinarily high expectations, meaning even exceptional results may struggle to fully impress investors.
SpaceX moves toward historic stock market debut
Outside the semiconductor industry, Elon Musk’s SpaceX drew major attention after filing paperwork for what could become the largest IPO ever recorded. The aerospace company is reportedly targeting a fundraising of at least US$80 billion, surpassing the record set by Saudi Aramco’s market debut in 2019.
The filing offered fresh insight into SpaceX’s operations and financial structure. Alongside its rocket launch activities, the company operates a significant satellite internet business. Its launch division generated US$4.1 billion in revenue last year but remained unprofitable, while the satellite business produced US$11.4 billion in revenue.
Total expenses reached US$20.7 billion, largely driven by heavy investment from xAI, Musk’s artificial intelligence startup focused on expanding data centre infrastructure. SpaceX and xAI merged in February, and some analysts believe Tesla could eventually become part of the broader group as well.
OpenAI reportedly preparing IPO plans
The Wall Street Journal reported that OpenAI may also be preparing for a public listing as early as September. Sources familiar with the matter said the ChatGPT developer has been working alongside advisers including Goldman Sachs and Morgan Stanley on IPO preparations.
A major hurdle was cleared earlier this week when OpenAI won its legal dispute against Elon Musk, although Musk has since confirmed he intends to appeal the ruling.
Markets watch closely for progress in U.S.-Iran negotiations
Beyond technology stocks, investor sentiment was also supported by hopes of a possible agreement to end the conflict between the United States and Iran, which has now continued for more than two months. President Donald Trump said Washington was in the “final stages” of negotiating a draft peace agreement, although he also warned that “we’re going to do some things that are a little bit nasty” if talks collapse.
Iran said it was reviewing the latest U.S. proposals aimed at ending the conflict. Investors remain particularly focused on any developments that could reopen the Strait of Hormuz, the critical shipping route off Iran’s southern coastline that has been largely closed to tanker traffic since the conflict began in late February. Shipping data cited by media reports earlier this week suggested some vessels have recently resumed transit through the waterway.
Brent crude futures were last trading modestly higher at US$106.34 a barrel after previously retreating from around US$110 following Trump’s remarks regarding a possible agreement.
Leave a Reply