U.S. Stock Futures Rise
U.S. stock futures inched higher on Thursday, building on the tech-driven rally from the previous session. As of 03:37 ET (07:37 GMT), Dow futures were up 83 points or 0.2%, S&P 500 futures gained 12 points or 0.2%, and Nasdaq 100 futures rose by 56 points or 0.3%. The broader market had advanced on Wednesday, with the Nasdaq Composite marking its largest daily gain in a month.
The tech sector received a significant boost from Nvidia’s 8.2% surge, its biggest single-day gain in six weeks. Despite August’s inflation figures showing a slight acceleration in core consumer prices, which increased the likelihood of a 25-basis point Federal Reserve rate cut rather than a 50-basis point reduction, the tech rally helped offset initial market declines.
Global Semiconductor Stocks Rally
Following Nvidia’s impressive performance, global semiconductor stocks also rose. In Asian trading, shares of Nvidia suppliers such as SK Hynix, Hon Hai Precision Industry, and Advantest Corp. saw gains. Japanese companies Tokyo Electron and Renesas Electronics also benefited. In Europe, ASM International, ASML Holding, and STMicroelectronics recorded gains in early trading.
OpenAI in Talks to Raise $150 Billion
OpenAI is reportedly negotiating to raise funds at a $150 billion valuation, potentially solidifying its status as a leading AI player. The company is seeking $6.5 billion in equity financing and is in discussions with banks for a $5 billion credit line. This valuation is nearly double its previous figure earlier this year. Venture capital firm Thrive Capital is leading the round, with other potential investors including Apple, Nvidia, and Microsoft. OpenAI’s prominence surged with the launch of its ChatGPT bot in 2022, fueling enthusiasm for AI innovations.
Boeing Faces Labor Dispute
Boeing may face a work stoppage as soon as Friday if approximately 33,000 workers in the U.S. Pacific Northwest reject a tentative labor deal and vote to strike. The agreement includes a 25% pay increase, a commitment to building a new plane in the region, enhanced retirement benefits, and increased union input on jet quality. However, employees, represented by the International Association of Machinists District 751, are reportedly seeking higher wage increases and additional improvements. A strike would add pressure on new Boeing CEO Kelly Ortberg, who is working to stabilize the company’s finances and address recent safety concerns.
Oil Prices Rise Amid Supply Disruptions
Oil prices increased in European trade on Thursday due to expectations of supply disruptions caused by Hurricane Francine. The storm, which made landfall in Louisiana on Wednesday, has led several oil companies to limit or halt operations in the affected areas. The potential for tighter supplies helped crude prices recover from near three-year lows, although traders remain concerned about persistent global demand issues.
These market movements reflect ongoing adjustments as investors respond to significant developments in technology, finance, and labor relations.
