May 25 (Reuters) – Nasdaq futures rose more than 1% on Thursday, led by Nvidia’s surge on expectations of a crash, amid signs of progress in talks to raise the U.S. debt ceiling.
Shares of Nvidia (NVDA.O), the world’s most valuable publicly traded chip company, surged 24% in pre-market trading. The company is the fifth most valuable company on Wall Street.
The company expects sales to beat Wall Street’s forecast by more than 50% this quarter, and is ramping up supply to meet surging demand for artificial intelligence chips used in ChatGPT and many similar services. said there is.
That led the rise among AI giants such as Microsoft (MSFT.O) and Alphabet (GOOGL.O), which rose 1.9% and 2.0%, respectively.
Other semiconductor companies including Advanced Micro Devices (AMD.O), Micron Technology (MU.O) and Broadcom (AVGO.O) also rose between 1.9% and 8.9%.
Intel (INTC.O), which is less exposed to AI, fell 0.7%.
Wall Street’s main index has fallen sharply in the past two trading sessions, prompting investors to wait for lawmakers to reach a deal to raise the country’s $31.4 trillion debt ceiling or a disastrous default. We are now heading into our worst week in over two months as we wait for clarity on whether we will risk (defaulting).
Democratic President Joe Biden and Congressional Republican Rep. Kevin McCarthy held what they described as productive talks on Wednesday to reach an agreement with a June 1 deadline looming.
Yields on U.S. Treasuries, which mature in early June, climbed above 7%, reflecting market uncertainty.
Yields on two-year bonds rose to their highest level since March after ratings agency Fitch put the U.S. on credit watch over a possible downgrade.
As of 4:53 a.m. ET, the Dow e-mini is down 77 points (0.23%), the S&P 500 e-mini is up 23.25 points (0.56%) and the Nasdaq 100 e-mini is up 226.5 points (1.66%). )Rose.
Reported by Mr. Shreyashi Sanyal, Bangalore.Editing: Arun Koyulu
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