Dow, S&P 500, Nasdaq Futures Climb As AI Frenzy Drives Record Rally: Why CSCO, LUNR, ONDS, NVDA, NOK Are In Focus

• April producer prices rose 1.4% from the previous month, marking the biggest jump since March 2022.
• Semiconductor stocks rallied on Wednesday, with NVDA rising over 2%, MU gaining 5% and the SMH climbing 2%.
• Markets also digested the Senate’s narrow confirmation of Kevin Warsh as the next Federal Reserve chair.

U.S. stock futures edged higher late Wednesday after AI-fueled tech gains pushed the S&P 500 and Nasdaq to fresh record highs despite another hot inflation report.

As of 9.45 p.m. ET, Nasdaq 100 futures were up 0.6%, while S&P 500 and Dow futures were up 0.2%.

On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF Trust (SPY) was ‘extremely bullish’ amid ‘normal’ message volume, while sentiment toward the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) was ‘bullish’ amid ‘high’ message volume.

US Market Drivers

Stocks jumped on expectations of a Federal Reserve rate cut following another hotter-than-expected inflation report, with April producer prices rising 1.4% from the previous month, the biggest jump since March 2022 and topping expectations of a 0.5% rise. Annual wholesale inflation rose to 6%.

Both the S&P 500 and Nasdaq Composite notched fresh intraday and closing record highs on Wednesday as traders bet that AI-driven spending would remain resilient even in a tougher macro environment.

Semiconductor stocks once again led the rally after Nvidia shares rose over 2% and Micron gained 5%. The VanEck Semiconductor ETF also jumped 2%. The tech rally gained further momentum after Nvidia CEO Jensen Huang joined U.S. President Donald Trump during his Beijing trip to meet Chinese President Xi Jinping, boosting hopes that tensions over AI chip exports to China could eventually ease.

The Kobeissi Letter noted on X that the S&P 500 has rallied 18% since the March 30 low, adding $10.4 trillion in market value in just six weeks. 

Investors are also monitoring Trump’s upcoming meeting with Xi Jinping in Beijing for potential developments on trade relations, semiconductor exports, and comments on the war in Iran and the Strait of Hormuz.

Separately, markets also digested the Senate’s narrow confirmation of Kevin Warsh as the next Federal Reserve chair, with investors tracking whether Warsh will maintain the Fed’s traditional independence as inflation pressures continue building and Treasury yields climb.

Trending Stocks To Watch On NYSE, Nasdaq

Cisco Systems (CSCO): Shares surged 20% in extended trading after Cisco issued stronger-than-expected quarterly guidance and announced 4,000 job cuts to redirect spending towards AI and networking investments.

Intuitive Machines (LUNR): Shares jumped 11% on Wednesday and extended gains after-hours on its selection for the U.S. Space Force’s Andromeda contract ahead of quarterly earnings due premarket on Thursday.

Ondas Holdings (ONDS): Shares gained 3% in after-hours trading ahead of quarterly results after World View CEO Ryan Hartman highlighted SkyWeaver, the company’s AI mission autonomy platform jointly developed with Palantir.

Nvidia (NVDA): Shares added 1% in after-hours trading as investors monitored Jensen Huang’s China visit alongside Trump, even after short seller Culper Research warned that Nvidia faces a “significant China problem” from tightening Beijing restrictions and slowing Chinese demand.

Nokia (NOK): Shares logged their best session in over six months after Nokia appointed Siemens executive Emma Falck as the president of mobile infrastructure, boosting optimism around the company’s 5G and 6G network strategy.

How Global Markets Are Performing Today

In broader markets, the benchmark 10-year U.S. Treasury yield hovered near its highest level since July. Gold traded at $4,700 an ounce after slipping for a second straight session, while silver hovered around $87.8 an ounce after extending its sharp May rally.

Economist Peter Schiff warned on X that “The yield on the 10-year Treasury is knocking at the door of 4.5%,” adding that once it breaks above the threshold, yields could climb rapidly toward 5%.

Oil prices steadied, with Brent crude trading below $106 a barrel and West Texas Intermediate crude hovering around $101. Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%, while Japanese markets opened strongly and Australian equities traded lower.

Among the catalysts for Thursday are key U.S. economic data releases, including April retail sales, retail sales excluding autos, weekly jobless claims, import price index data and March business inventories. 

Markets will also monitor speeches from Kansas City Fed President Jeff Schmid, Cleveland Fed President Beth Hammack, New York Fed President John Williams and Federal Reserve Governor Michael Barr for additional clues on the Fed’s interest-rate path.

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