U.S. stock futures traded slightly higher early Thursday after the Dow Jones Industrial Average closed at a fresh record high, while investors prepared for another busy day of corporate earnings.
Dow futures gained 113 points, or 0.21%, S&P 500 futures advanced 0.15%, while Nasdaq 100 futures slipped 0.19%.
During Wednesday's regular session, the Dow climbed 263.24 points, or 0.49%, marking its fifth consecutive day of gains and a new record close. Meanwhile, the S&P 500 edged down 0.17%, ending its four-session winning streak, and the Nasdaq Composite declined 0.83%.
Asian markets traded mixed on Thursday. Japan's Nikkei 225 fell 0.51%, while the broader Topix index posted modest gains. South Korea's Kospi dropped 1.84% at the open, whereas the small-cap Kosdaq rose 0.15%. Australia's S&P/ASX 200 added 0.1%.
Investor sentiment received an early boost on Wednesday from strong corporate earnings and renewed enthusiasm surrounding artificial intelligence. Nvidia surged more than 3% after Elon Musk revealed during SpaceX's earnings call that the company plans to rely exclusively on Nvidia chips for its AI infrastructure. The rally helped lift the Dow to another all-time high, although technology stocks later retreated as traders locked in profits, with shares of Advanced Micro Devices and Alphabet coming under pressure.
Markets have also drawn support from signs of easing geopolitical tensions in the Middle East, contributing to a recent decline in oil prices.
On the policy front, inflation remains a key concern. Federal Reserve Governor Lisa Cook said she is prepared to support another interest rate hike if inflation fails to show continued progress toward the central bank's target. She warned that prolonged above-target inflation could become deeply embedded in wages and pricing, making it significantly more difficult to control in the future.
Investors are now awaiting another packed earnings session. Warner Bros. Discovery is scheduled to report before the opening bell, while Airbnb and Lyft will release their quarterly results after the market closes.
Attention will also turn to economic data, with weekly initial jobless claims due on Thursday. However, the primary focus remains Friday's U.S. nonfarm payrolls report for July, which could play a crucial role in shaping expectations for the Federal Reserve's next policy move.
