Scott Olson
Stock index futures erased overnight losses Thursday as some buying appetite came in for Nvidia (NVDA) following the initial selloff after its results.
S&P futures (SPX) +0.2%, Nasdaq 100 futures (US100:IND) +0.2% and Dow futures (INDU) +0.6% rose.
The VIX (VIX) -6% was lower following a 10% pop overnight.
Nvidia was off 2% after being down as much as 7% overnight despite beating forecasts and issuing solid guidance.
Rates were a little higher. The 10-year Treasury yield (US10Y) gained 2 basis point to 3.86%. The 2-year yield (US2Y) was up 1 basis point to 3.88%.
The “10yr (Secured Overnight Financing Rate), now at 3.4%, is already overshooting to the downside,” ING said. “It can get as low as 3% as the rate cutting gets going. But there is little relative value sense to it breaking below 3%, as the Fed itself is not discounted to break below 3%.”
“If or when the 10yr gets to that type of level, we expect it to spark a journey back up to 4%. That journey should begin around the turn of the year, at the very latest.”
On the economic front, U.S. Q2 GDP was revised to +3.0% from the advance estimate of +2.8%. That compares with the 1.4% growth level in Q1 2024 GDP.
July retail inventories advanced +0.8% to $811.4B. At the same time, wholesale inventories rose 0.3% in July, which was as expected.
Additionally, initial jobless claims for the week ended Aug. 24 fell 2K to 231K, compared with the 230K consensus and 233K figure which was reported in the previous week.
