Stock Market Today: Nvidia set to power S&P 500 and Nasdaq to records

Check back for updates throughout the trading day

U.S. equity futures powered higher Thursday, setting up a set of record highs for the major benchmarks, after a blowout set of first quarter earnings from Nvidia looked to drive tech-led gains and extend the market's surprising May rally.

Updated at 8:36 AM EDT

Working, working 

New applications for jobless benefits fell by 8,000 last week to 215,000, the Labor Department said, a level that takes the week average to around 219,750. Continued claims, meanwhile, rose modestly to 1.974 million, bang in line with Street forecasts.

Stocks were little-changed following the data release, with futures tied to the S&P 500 indicating a 39 point opening bell gain and those linked to the Nasdaq suggesting a 223 point advance. 

Benchmark 10-year note yields edged higher, to 4.422% , while 2-year notes were pegged at 4.877%.

INITIAL JOBLESS CLAIMS: 215K V 220KE; CONTINUING CLAIMS: 1.794M V 1.793ME

Apr Chicago Fed National Activity Index: -0.23 v +0.13e— Open Outcrier (@OpenOutcrier) May 23, 2024

Check back for updates throughout the trading day

Nvidia  (NVDA)  smashed Wall Street's sales and earnings forecasts last night, posting net income of $15.24 billion on record revenue of just over $26 billion. It also boosted its regular dividend by 150% and unveiled plans for a 10-for-1 stock split in early June.

The group also forecast current-quarter revenues in the region of $28 billion, suggesting robust demand for its AI-powering processors and boosting the value of rival chipmakers who are likely to grab a smaller share of the rapidly expanding market.

Nvidia $NVDA basically controlling the entire stock market pic.twitter.com/kHTLfUYzfh— Barchart (@Barchart) May 23, 2024

Nvidia shares are likely to open north of the $1,000 mark for the first time on record, dragging the Nasdaq to an all-time high and lifting rivals such as Advanced Micro Devices  (AMD) , Micron Technology  (MU)  and Broadcom  (AVGO)  firmly into the green.

Away from tech, minutes of the Fed's May policy meeting, published late Wednesday, suggested concern about the slow pace of inflation progress and hinted at the need for higher rates to achieve it.

Fed Chairman Jerome Powell, however, as well as other key members of the central bank's rate-setting committee have pushed back on the idea of higher rates in recent weeks, focusing the markets on the new growth and inflation forecasts from next month's meeting in Washington.

"Given Chairman Powell's more dovish comments recently suggesting that the next policy move would most likely see an easing of rates, Fed speakers have made it decidedly clear they need to see a series of more favorable inflation-related data before they ease policy," said LPL Financial's chief global strategist, Quincy Krosby.

Benchmark 2-year Treasury note yields were marked 2 basis points higher in the overnight session at 4.862% while 10-year notes were pegged at 4.418%.

The dollar index, meanwhile, fell 0.2% against a basket of its global currency peers to trade at 104.723 ahead of weekly jobless claims data at 8:30 am Eastern time and PMI activity data just after the opening bell. 

Heading into the start of the trading day on Wall Street, the Nasdaq is set for a record high with futures contracts suggesting a 165-point opening bell gain, powered in part by a 6.7% advance for Nvidia. 

Futures contracts tied to the S&P 500 are priced for a 29-point advance while the Dow Jones Industrial Average is called 33 points higher. 

More Wall Street Analysts:

• Analyst unveils new Nike price target ahead of big summer for sports
• Analysts weigh in on Google-parent Alphabet’s stock after cloud event
• Analysts revamp Disney stock price target after proxy fight

In overseas markets, Europe's Stoxx 600 was marked 0.24% higher, with tech stocks leading the advance, while Britain's FTSE 100 edged 0.02% higher in London.

Overnight in Asia, Japan's Nikkei 225 snapped a two-day losing streak with a 1.26% gain as Nvidia's blowout earnings lifted chip and tech stocks. The regionwide MSCI ex-Japan benchmark slipped 0.19% into the close of trading. 

Related: Single Best Trade: Wall Street veteran picks Palantir stock