US stock index futures showed mixed performance in Asian trading on the morning session, with the S&P500 futures edging up 0.05% to 7,758.00 as of 9:50 AM while Nasdaq100 futures declined 0.19% to 29,556.75, following the Dow Jones Industrial Average's record high close in the previous session. The divergence reflected profit-taking in technology stocks after recent sharp gains, despite positive corporate earnings that continued to support sentiment around artificial intelligence infrastructure investments. Market participants noted that easing Middle East geopolitical tensions and strong corporate profit growth across nearly all sectors provided a supportive backdrop for equities.
US Stock Futures Show Mixed Performance in Asian Trading
E-mini S&P500 index futures traded 0.05% higher at 7,758.00 as of 9:50 AM Korean time in Asian market hours. The tech-heavy E-mini Nasdaq100 index futures declined 0.19% to 29,556.75 during the same period. The mixed performance followed overnight gains in the Dow Jones Industrial Average, which reached another all-time high.
Dow Jones Reaches New Record High as Tech Stocks Face Profit-Taking
The Dow Jones Industrial Average rose 0.49% in the previous New York trading session, extending its winning streak to five consecutive trading days and setting a new record high. The S&P500 index declined 0.17% while the Nasdaq Composite fell 0.83%, as profit-taking emerged following recent sharp gains in technology stocks.
NVIDIA shares climbed more than 3% after CEO Elon Musk stated during SpaceX's earnings announcement that the company would use only NVIDIA chips for AI infrastructure. However, AMD and Alphabet among other major technology stocks showed weakness, limiting broader gains in the tech sector.
Corporate Earnings Alleviate AI Investment Concerns
Catherine Bodmeier, Co-Head of US Client Portfolio at Goldman Sachs Asset Management, stated that "not only are corporate profit sizes growing, but nearly all sectors are showing double-digit profit increases." She added that "concerns about AI investment returns are being positively confirmed through hyperscalers' earnings results."
Expectations of easing geopolitical tensions in the Middle East also supported investor sentiment. International oil prices continued their recent decline as expectations grew that the US and Iran were nearing an agreement to reopen the Strait of Hormuz.
US Treasury Yields Decline Across Maturities
US Treasury yields fell across the board. The 10-year Treasury yield declined 0.9 basis points to 4.6110% compared to the previous trading day. The 2-year yield, which is sensitive to monetary policy, fell 0.3 basis points to 4.1910%. The 30-year yield dropped 1.2 basis points to 5.1600%.
The dollar weakened slightly, with the Dollar Index declining 0.03% to 99.647 compared to the previous session.
FAQ
What happened to US stock futures in Asian trading on the morning session?
US stock index futures showed mixed performance, with E-mini S&P500 futures rising 0.05% to 7,758.00 while E-mini Nasdaq100 futures fell 0.19% to 29,556.75 as of 9:50 AM. The divergence followed the Dow Jones Industrial Average's record high close in the previous session.
Why did NVIDIA shares rise more than 3% in the previous session?
NVIDIA shares climbed more than 3% after Elon Musk stated during SpaceX's earnings announcement that the company would use only NVIDIA chips for AI infrastructure, reinforcing positive sentiment around the company's position in artificial intelligence hardware.
