U.S. stock futures ticked up slightly on Thursday, with the S&P 500 and Nasdaq rebounding after a sharp decline led by a sell-off in Nvidia and other tech stocks. Investors appeared to be reassessing their positions following a turbulent session that saw profit-taking in high-growth sectors.
The recent dip in Nvidia’s stock, which had been a major driver of the market’s rally, triggered broader weakness across the technology sector. While the company remains a key force in the AI-driven investment boom, its sharp decline raised concerns that tech valuations may have become overstretched after months of gains.
Despite the sell-off, investor sentiment remained cautiously optimistic, as futures inched higher ahead of fresh economic data. Traders are watching closely for updates on inflation and labor market conditions, which could influence the Federal Reserve’s next moves on interest rates.
Market analysts suggest that the recent pullback could be a natural pause in the ongoing bull run rather than a sign of deeper weakness. With corporate earnings season winding down, attention is shifting toward macroeconomic factors, including potential signals from the Fed on future rate cuts.
Meanwhile, bond yields remained elevated, reflecting uncertainty over how long the Fed will maintain its restrictive stance. A stronger-than-expected economy has kept central bank officials hesitant to ease policy too quickly, despite growing market expectations for cuts later this year.
As the trading day unfolds, investors will be watching for signs of renewed strength in tech stocks and broader market momentum. While futures point to a modest rebound, volatility remains a key factor as markets digest the latest economic and earnings data.
