US futures take time out after breakout rally

NEW YORK (February 23) US stock futures took a breather on Friday, as investors weighed what could follow the record-breaking rally stoked by AI chipmaker Nvidia's (NVDA) blowout earnings.

Futures on the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) danced around the flatline, having closed at all-time highs on Thursday. Contracts on the Nasdaq 100 (^NDX) were also muted after the tech-heavy index added 3% to score its own record.

Stocks are consolidating after the worldwide breakout, which saw about $277 billion added to Nvidia's market value for the biggest single-day gain in Wall Street history. The meteoric rise in the chipmaker's shares continued in Friday's premarket, up about 2% and on track to top a $2 trillion valuation.

As the AI frenzy begins to abate, the chances of a US interest-rate cut are coming back into view for the market. A parade of Federal Reserve officials underlined that cuts are coming, but not soon — though they differed on just when the shift might start.

A solid fourth-quarter earnings season is winding down, with more than one-third of reports so far beating estimates. An upbeat earnings forecast from Block (SQ) was followed by a jump in the fintech's shares, while Carvana (SQ) stock popped after the used-car seller reported its first annual profit.

Yahoo