U.S. Futures Rise on Nvidia’s Strong Earnings and OpenAI’s New Deal

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U.S. stock futures advanced on Thursday as investors responded to Nvidia’s exceptional quarterly earnings and a new content-sharing agreement between OpenAI and News Corp. This follows a mixed session on Wednesday influenced by the Federal Reserve’s cautious outlook on inflation. 1. Futures Boosted by Nvidia’s Stellar Performance As of 03:43 ET (07:43 GMT), futures for the major U.S. indices showed promising gains. The S&P 500 futures rose by 27 points (0.5%), Nasdaq 100 futures increased by 158 points (0.8%), and Dow futures climbed by 30 points (0.1%). This uptick in futures follows Nvidia’s remarkable quarterly earnings, which reported a revenue increase of 262% year-over-year to $26 billion, surpassing Wall Street expectations of $24.7 billion. The semiconductor giant forecasts continued growth, anticipating $28 billion in revenue for the next quarter, beating analysts’ estimates of $26.8 billion. Nvidia’s data center revenue, driven by its AI chips, surged 427% year-over-year to a record $22.6 billion. CEO Jensen Huang highlighted the transformative potential of AI, stating, “The next industrial revolution has begun. AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.” Huang also indicated that the forthcoming Blackwell line of chips will further bolster Nvidia’s revenues this year. Nvidia’s impressive results also positively impacted its Asian suppliers, including memory chip manufacturers SK Hynix and Samsung Electronics, as well as semiconductor manufacturer TSMC. 2. OpenAI and News Corp Strike Content Sharing Deal News Corp’s A shares surged in extended trading following the announcement of a content-sharing agreement with OpenAI. The deal grants OpenAI access to content from News Corp’s major publications, such as The Wall Street Journal, The Times, The New York Post, and Marketwatch. The financial details of the agreement were not disclosed, but The Wall Street Journal reported that the deal is valued at over $250 million over five years. This partnership is part of OpenAI’s broader strategy to secure content for training its AI models, amidst scrutiny over alleged unauthorized data usage. 3. DOJ to Pursue Breakup of Live Nation and Ticketmaster Shares of Live Nation Entertainment dropped significantly in after-hours trading on news that the U.S. Department of Justice (DOJ) is preparing to sue the company for antitrust violations. The DOJ’s lawsuit, which could be filed soon in the Southern District of New York, seeks to address multiple antitrust violations and may push for a breakup of Live Nation and Ticketmaster. Live Nation’s shares fell by as much as 9.3% to $92 following the report but have since recovered some losses. 4. Crude Prices Decline Amid Fed’s Inflation Concerns Crude oil prices continued their downward trend for the fourth consecutive session. By 03:43 ET, U.S. crude futures (WTI) were down 0.1% at $77.47 per barrel, and Brent crude futures also dropped 0.1% to $81.86 per barrel. The dip in crude prices comes as the Federal Reserve’s minutes indicated that interest rates are likely to remain elevated, potentially curbing economic growth and oil demand. Additionally, U.S. crude stocks rose by 1.8 million barrels last week, contrary to analysts’ expectations of a 2.5 million-barrel draw, further pressuring oil prices. The U.S. futures market is poised for gains, driven by Nvidia’s robust earnings and the strategic partnership between OpenAI and News Corp. However, broader market sentiment remains cautious amid ongoing concerns about inflation and potential antitrust actions against Live Nation. Investors will closely watch these developments as they navigate the evolving economic landscape.