U.S. stock futures took a breather on Friday as investors considered what would happen after a record rally sparked by explosive profits for AI chipmaker Nvidia (NVDA).
S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) futures hovered around the flatline, closing at all-time highs on Thursday. The Nasdaq 100 (^NDX) contract also slumped after the tech stock ratio rose 3% to a new record high.
After the global breakout, stocks held steady, increasing NVIDIA's market value by about $277 billion, the largest single-day gain in Wall Street history. The company's stock's meteoric rise continued in Friday's pre-market, rising about 2% and on track to push its valuation above $2 trillion.
As the AI frenzy begins to subside, the possibility of a U.S. interest rate cut is back on the market's radar. A parade of Federal Reserve officials emphasized that a rate cut was coming, but not right away, although opinions differed on when the shift would begin.
read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards
A strong fourth-quarter earnings season is coming to an end, with more than a third of reports so far beating expectations. Shares of fintech companies soared after Block Corp. (SQ)'s positive earnings forecast, while Carvana Inc. (SQ) shares soared after the used car retailer reported its first annual profit.
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