After a significant inflation report early on Thursday, Dow Jones futures reversed course and moved higher, following the impact of hot Consumer Price Index news on the markets. Technology giants Nvidia (NVDA) and Microsoft (MSFT) are in the spotlight in today’s stock market.
While the S&P 500 and Nasdaq managed to find support at their 10-week moving averages the previous day, the Russell 2000 fell below its 50-day line. Nvidia’s performance provided some support in this scenario. Both Nvidia and Microsoft received new price target updates on Thursday. Nvidia’s stock saw a slight increase following a rebound on Wednesday, while Microsoft also saw a modest rise.
Another key player, Amazon.com (AMZN), announced its commitment to cost-cutting measures and a strategic focus on artificial intelligence, including the development of its own AI chips. This aligns with the trend among top companies to reduce reliance on external AI chip providers like Nvidia.
In the biotech sector, Vertex Pharmaceuticals (VRTX) made headlines with its acquisition of Alpine Immune Sciences (ALPN), which led to a surge in ALPN stock. On the other hand, Regeneron Pharmaceuticals (REGN) faced challenges after allegations of overcharging Medicare for its drug Eylea.
The recent producer price index data released by the Labor Department indicated a slight increase in inflation, but still below market expectations. Additionally, weekly jobless claims fell, signaling positive trends in the labor market.
Despite the premarket gains in Dow Jones futures and other indices, the stock market remains under pressure due to concerns about rising inflation and potential Fed rate cuts. The 10-year Treasury yield fluctuated, and crude oil futures experienced a slight decline.
Overall, the market is closely monitoring key tech stocks like Nvidia and Microsoft, as well as keeping an eye on economic indicators and developments in various sectors to navigate the current market conditions and make informed investment decisions.
