Tech Stocks Lead Charge: US Futures Gain on Nvidia Surge

US Stock Futures Climb

US stock futures showed modest gains on Thursday, hinting at a continuation of the tech-driven rally observed in the previous session. As of 06:09 AM EDT, Dow futures were up by 60 points, or 0.15%, S&P 500 futures increased by 8 points, or 0.14%, and Nasdaq 100 futures saw a rise of 23.75 points, or 0.12%.

The broader market benefited from a strong performance by technology stocks, particularly Nvidia, which saw its shares surge significantly. This uptick followed a dip earlier in the week triggered by August’s inflation figures. Despite consumer prices holding steady from July, a slight acceleration in core inflation raised expectations for a more cautious 25-basis point interest rate cut by the Federal Reserve at its upcoming meeting on September 17-18.

Semiconductor Sector Surges

Global semiconductor stocks also saw a boost on Thursday, mirroring Nvidia’s impressive performance. Key players such as SK Hynix, Hon Hai Precision Industry, and Advantest Corp. experienced gains in Asian trading. European semiconductor giants like ASM International, ASML Holding, and STMicroelectronics also saw positive movement.

Nvidia's stock surged by 8.2% on Wednesday, marking its largest single-day gain in six weeks, which contributed to a broader uplift in the semiconductor sector. The stock remained close to its peak in extended trading hours.

OpenAI’s Valuation Soars

OpenAI is reportedly in discussions to raise funds at an impressive valuation of $150 billion, according to recent reports. This valuation could solidify OpenAI’s position as a leading player in the artificial intelligence sector. The company is looking to secure $6.5 billion in equity financing and is also negotiating a $5 billion credit line with banks.

This new valuation nearly doubles the company’s previous valuation of $86 billion from earlier this year. Thrive Capital is leading the funding round, with potential backers including tech giants like Apple, Nvidia, and Microsoft. OpenAI’s prominence soared with the release of its ChatGPT bot in 2022, fueling a surge in interest around AI technologies.

Boeing Faces Labor Dispute

Boeing is bracing for a possible strike as around 33,000 workers in the US Pacific Northwest prepare to vote on a tentative labor agreement. The proposed deal includes a 25% pay increase, improved retirement benefits, and a commitment to build a new plane in the region.

However, the workers, represented by the International Association of Machinists District 751, are reportedly inclined to reject the deal, pushing for higher wage increases and additional improvements. A strike could intensify scrutiny on Boeing’s new CEO, Kelly Ortberg, who is working to restore the company’s financial health and reputation following recent issues. Ortberg has warned that a strike could jeopardize ongoing recovery efforts.

Oil Prices Rise Amid Supply Concerns

Oil prices saw an uptick in European trading on Thursday, driven by concerns over potential supply disruptions due to Hurricane Francine. The storm, which made landfall in Louisiana on Wednesday, caused several oil companies to limit or halt operations in its path.

The rebound in oil prices from near three-year lows was supported by these supply concerns, although traders remain cautious as the storm is expected to dissipate soon. Brent crude futures for November delivery rose by 1.6% to $71.71 per barrel, while West Texas Intermediate crude futures climbed 1.5% to $67.57.

These developments highlight a dynamic day in the markets, with significant moves in technology, finance, labor negotiations, and commodity prices.