(RTTNews) - Stocks may move to the upside in early trading on Thursday, with the tech-heavy Nasdaq poised to add to the strong gain posted in the previous session. The major index futures are currently pointing to a higher open for the markets, as the S&P 500 futures are up by 0.3 percent.
Tech stocks may extend yesterday's rally amid a positive reaction to earnings news from San Jose-based technology giant Cisco Systems (CSCO).
Shares of Cisco are soaring by 14.5 percent in pre-market trading after the company reported better than expected fiscal third quarter results and provided upbeat guidance. Cisco also revealed plans to cut nearly 4,000 jobs.
Market leader and AI darling Nvidia (NVDA) is also seeing significant pre-market strength after a report from Reuters said the U.S. has cleared around 10 Chinese firms to buy the company's second-most powerful AI chip, the H200.
The report comes amid a closely watched summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping in Beijing.
After a nearly two-hour long high-stakes meeting at the Great Hall of the People, Trump described the talks as "great."
The White House said, "The two sides agreed that the Strait of Hormuz must remain open to support the free flow of energy."
A statement issued by China's foreign ministry said the two leaders agreed to a "constructive strategic stable relationship" as the new orientation for bilateral relations over the next three years and beyond.
In U.S. economic news, a report released by the Commerce Department on Thursday showed retail sales in the U.S. increased in line with economist estimates in the month of April.
The Commerce Department said retail sales climbed by 0.5 percent in April after jumping by a downwardly revised 1.6 percent in March. Economists had expected retail sales to grow by 0.5 percent.
Excluding sales by motor vehicle and parts dealers, retail sales increased by 0.7 percent in April after surging by 1.9 percent in March. Ex-auto sales were expected to increase by 0.6 percent.
Meanwhile, the Labor Department released a separate report showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended May 9th.
The report said initial jobless claims climbed to 211,000, an increase of 12,000 from the previous week's revised level of 199,000. Economists had expected jobless claims to rise to 205,000.
With technology stocks moving sharply higher on the day, the Nasdaq showed a strong move back to the upside during trading on Wednesday, reaching a new record closing high.
The S&P 500 also climbed to a new record closing high, although the narrower Dow edged slightly lower after posting a modest gain on Tuesday.
While the Dow slipped 67.36 points or 0.1 percent to 49,693.20, the S&P 500 advanced 43.29 points or 0.6 percent to 7,444.25 and the Nasdaq shot up 314.14 points or 1.2 percent to 26,402.34.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. China's Shanghai Composite Index slumped by 1.5 percent and Japan's Nikkei 225 Index slid by 1 percent, while South Korea's Kospi jumped by 1.8 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 1.3 percent, the French CAC 40 Index is up by 0.8 percent and the U.K.'s FTSE 100 Index is up by 0.4 percent.
In commodities trading, crude oil futures are sliding $0.60 to $100.42 a barrel after slumping $1.16 to $101.02 a barrel on Wednesday. Meanwhile, after climbing $20 to $4,706.70 an ounce in the previous session, gold futures are inching up $2.40 to $4,709.10 an ounce.
On the currency front, the U.S. dollar is trading at 157.96 yen versus the 157.85 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1698 compared to yesterday's $1.1710.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
