Stock Market Today: Nasdaq Falling After Nvidia Earnings; S&P 500, Dow Set to Open Up; Super Micro, CrowdStrike, Salesforce, Lululemon, More Movers; Jobs Report

The chip maker reported another strong set of earnings after Wednesday’s closing bell but the market was looking for more, judging by Thursday’s premarket action.

Investors will also be able to mull fresh economic data on Thursday, with weekly jobless claims data likely to give a sense of how the labor market is holding up as the Federal Reserve gets ready to start cutting interest rates. The Bureau of Economic Analysis is also set to release its second estimate for June-quarter U.S. GDP.

Nvidia shares slipped 4% in premarket trading Thursday after it issued underwhelming sales guidance that caused investors to question how long the AI investing craze can continue to power the market higher.

Other megacap Big Tech stocks were rising ahead of the opening bell, though. iPhone maker Apple jumped 1.1% in premarket trading, while the other members of the so-called Magnificent Seven–Microsoft, Google owner Alphabet, Amazon, Facebook parent Meta Platforms, and Tesla–were also all trading in the green.

The Roundhill Magnificent Seven exchange-traded fund, which tracks the group, was down just 0.1% despite Nvidia shares’ losses.

Thursday isn’t just about Nvidia. While the AI chip maker’s good, but not perfect, earnings are the big story for markets in early-morning trading, investors will be able to parse through weekly jobless claims data later.

Economists are expecting the number of people claiming for unemployment insurance benefits to hold steady at 232,000, according to a survey by FactSet.

The weekly release has been an important driver for stocks recently, because it’s a barometer of how the labor market is holding up. The Federal Reserve has signaled to investors that it will be keeping a close eye on jobs numbers as it gets ready to cut interest rates for the first time since the early days of the Covid-19 pandemic.

Nvidia reported another strong set of earnings after Wednesday’s closing bell. But the market was looking for perfection, judging by Thursday’s premarket action.

Futures for the Dow Jones Industrial Average–the only one of the three main U.S. indexes of which the chip maker isn’t a constituent–were up 183 points, or 0.4%. Futures for the benchmark S&P 500 gauge were edging up less than 0.1%, while contracts tied to the tech-heavy Nasdaq 100 dropped less than 0.1%.

Nvidia’s latest results have given the market a reason to wonder how much longer the artificial intelligence investing frenzy that’s powered stocks higher ever since ChatGPT’s November 2022 launch can last.

The semiconductor giant beat analysts’ top-line expectations, according to data from FactSet, but issued an underwhelming sales forecast and flagged production hitches for its new Blackwell graphics processing units (GPUs). Its shares fell 6.9% to $116.95 in after-hours trading.

“Nvidia continues to defy gravity…but early trading suggests that’s not enough to keep the market happy,” Hargreaves Lansdown analyst Matt Brintzman said in a morning research note. “It’s less about just beating estimates now, markets expect them to be shattered and it’s the scale of the beat today that looks to have disappointed a touch.”

Investors will also be able to mull fresh economic data on Thursday, with weekly jobless claims data likely to give a sense of how the labor market is holding up as the Federal Reserve gets ready to start cutting interest rates. The Bureau of Economic Analysis is also set to release its second estimate for June-quarter U.S. GDP.

Benchmark Brent and West Texas Intermediate oil prices held flat as Israel pressed ahead with its latest operation in the West Bank, while bond yields were largely unchanged over the past 24 hours. The yield on the 10-year U.S. Treasury note was at 3.842%, while the yield on the two-year note was 3.879%.