US stock futures higher as Nvidia rally lifts tech, S&P 500 nears record

US stock futures edge higher as Nvidia rally lifts tech; S&P 500 nears record

US equity futures were mildly higher on June 4 with tech stocks extending their strong run led by Nvidia, as the mood remained upbeat with major indices approaching fresh highs.

Futures on the Wall Street were bolstered by easing trade concerns and growing confidence in US corporate earnings.

At 6:30 am ET, Dow Jones Industrial Average futures were up 49 points, or 0.1%. Futures tied to the S&P 500 rose 0.2%, while Nasdaq 100 futures gained by a similar margin.

Chip giant Nvidia advanced another 0.7% in pre-market trade, building on its nearly 3% surge on Tuesday that briefly made it the world’s most-valuable listed company again, overtaking Microsoft. Broadcom rose 0.7%, while other mega-cap tech names including Meta and Alphabet were modestly higher ahead of the US open.

Overnight, the Dow Jones rose by 0.5%, notching its fourth straight gain, followed by S&P 500’s 0.6% rise and the Nasdaq Composite’s gain of 0.8% on continued momentum.

The S&P 500 is now less than 3% below its 52-week high while the Nasdaq is within 4% of recent peak, and the Dow Jones is trailing by less than 6%.

Investor sentiment has also been buoyed by signs of moderation in trade tensions. Markets appeared largely unfazed by the latest comments from former US President Trump, who called dealings with China’s President Xi Jinping ‘extremely hard’. A recent court ruling striking down certain tariffs - albeit temporarily reinstated on appeal - added to hopes that worst-case trade scenarios are being priced out.

“The market’s ability to rally on light news flow suggests improving confidence,” said Tom Lee of Fundstrat Global Advisors, speaking to CNBC. “The risk now is we could see a substantial leg-up from here.”

Cybersecurity firm CrowdStrike’s shares fell 7% ahead of the opening bell after a revenue forecast disappointed investors, despite beating expectations for Q1 earnings. Bank of America downgraded the stock to neutral, citing the sharp 43% rally year-to-date as a reason to take a more cautious view.