US stock futures indicated a positive start to trading on Thursday, 14 May, as technology stocks continued to support the headline indices, while traders closely monitored developments involving the world’s two largest economies.
Futures tied to the tech-heavy Nasdaq 100 Index climbed 0.7%, while those linked to the S&P 500 Index rose 0.2% after both gauges closed at record highs on Wednesday. Futures for the Dow Jones Industrial Average also gained 0.8%.
The tech rally, which had paused earlier, regained momentum as traders continued to believe that the artificial intelligence-driven trade still has room to run. Sentiment strengthened further after posted strong third-quarter earnings, issued an upbeat outlook, and announced plans to cut 4,000 jobs amid productivity improvements.
US equities have surged to record highs, supported by strong corporate earnings and expectations that AI-driven spending will continue to fuel growth. First-quarter profits at S&P 500 companies have risen 27% so far, more than double the roughly 12% analysts had expected — marking the fastest year-on-year earnings growth outside recoveries from major economic shocks since 2004, Bloomberg reported.
Traders are also closely tracking geopolitical developments involving Iran, along with the summit between Trump, as concerns persist that the conflict in the Middle East could keep inflation elevated and weigh on the global economy.
The White House and Chinese state media said the leaders concluded their meeting on Thursday morning after about two hours. Trump is expected to depart shortly after midday on Friday following a final private meeting with Xi, AP reported.
Recent US inflation reports have highlighted mounting price pressures, prompting traders to increase bets on a Federal Reserve rate hike over the coming year. The yield on benchmark 10-year US Treasuries climbed to its highest level since July.
US accelerated in April to its fastest pace since 2022, driven by a war-led surge in energy prices that is feeding into higher freight transportation costs.
Crude prices remain volatile
remained volatile in trade, swinging between gains and losses after posting their first decline in three sessions on Wednesday. Brent crude futures eased to around $104 a barrel after touching an intraday high of $107, while WTI crude futures slipped to $100 a barrel from the day’s high of $102.
In the previous session, Brent crude briefly surged above $108 a barrel and WTI crossed $103 after the International Energy Agency (IEA) reported that global oil inventories declined by nearly 4 million barrels per day during March and April, highlighting severe supply tightness.
The rally was also driven by a sharp decline in Saudi production, with Riyadh informing OPEC that output dropped another 651,000 barrels per day in April to 6.316 million barrels per day, down 42% since February and the lowest level since Iraq’s invasion of Kuwait in 1990, as disruptions in the Strait of Hormuz severely impacted Persian Gulf exports, according to domestic brokerage firm Kotak Securities.
US stocks in focus today
According to Vested Finance, Nvidia shares advanced another 1.9% in premarket trading, extending their winning streak to six consecutive sessions as investors continued accumulating AI-focused leaders.
Vested Finance highlighted that the biggest surprise came from Cisco Systems, whose shares surged as much as 17% after the company raised its sales forecast and announced deeper cost cuts to focus more aggressively on .
The brokerage further pointed out that investor appetite for AI-linked companies remains extremely strong, citing AI chipmaker Cerebras Systems raising $5.5 billion in what it described as the biggest IPO of the year.
However, some semiconductor stocks paused after their sharp rally since April, with Intel slipping 3.5% and Micron Technology declining nearly 3% as traders booked profits.
Vested Finance underscored that AI is now doing more than driving technology stocks and is effectively carrying the broader market rally. However, the brokerage cautioned that the rally has become increasingly narrow, with a small group of AI-linked companies continuing to push indices higher while several other sectors remain considerably weaker beneath the surface.
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