Dow Futures are exhibiting a mixed performance as investors brace for the initial trading session of the fourth quarter, following a tumultuous September for financial markets. Micron presents a positive revenue forecast, highlighting robust demand for memory chips utilised in artificial intelligence. Nike is poised to announce its most recent results, with investors eager to assess advancements in the athletic apparel brand’s turnaround strategy.
Dow futures fluctuated around the neutral point on Thursday. By 03:34, the Dow futures contract had declined by 219 points, representing a decrease of 0.4%. In contrast, S&P 500 futures experienced a modest increase of 4 points, or 0.1%, while Nasdaq 100 futures rose by 161 points, equivalent to a 0.5% gain. The primary indices on Wall Street concluded Thursday’s trading session with a mixed performance, as the S&P 500 and Dow Jones Industrial Average both experienced declines, whereas the tech-centric Nasdaq Composite saw an increase. U.S. Treasury yields increased once more, even as the August personal consumption expenditures data, which came in cooler than expected, briefly ignited optimism regarding the trajectory of inflation. Traders are now anticipating the release of crucial U.S. employment data for September, which may provide insights into the Federal Reserve’s interest-rate trajectory. For the month characterised by persistent tensions in the Middle East and a significant decline in the bond market, the S&P experienced a decrease of 0.45%, the Dow saw a drop of 4.29%, while the Nasdaq recorded an increase of 1.86%. Both the Nasdaq and S&P achieved a second consecutive quarterly increase, marking the fifth advance in the last six quarters. Meanwhile, the Dow experienced a decline during the July-September period.
Shares of Micron experienced a modest increase in after-hours trading, following the chipmaker’s announcement of a quarterly revenue forecast that exceeded market expectations. The Idaho-based group, which has been a major beneficiary of runaway AI-memory-chip demand, added that customers had increased their commitments under its long-term supply agreements to $32 billion, up from $22 billion reported in June. Businesses have been competing to acquire memory chips as they accelerate the expansion of data centers that support AI models, resulting in a shortage of these processors that has contributed to an increase in their price. Micron, with clients such as AI chip leader Nvidia, has capitalised on the advantages. Against this backdrop, Micron’s stock price has more than tripled so far this year, giving the company a $1 trillion market capitalisation and generating enthusiasm that AI could drive additional growth.
Nike shares were pointing down slightly after-hours, with the athletic apparel titan set to release its latest results following the closing bell. The returns will likely serve as the latest assessment of CEO Elliott Hill’s restructuring of the company, which involves a renewed emphasis on sports such as football and running, strengthening ties with wholesalers, and introducing new products. Yet Nike has continued to contend with declining sales, a deficiency in innovation, and escalating competition. Investors seem to be growing increasingly impatient with Elliott, who has been at the helm of Nike for nearly two years, as they await tangible progress in his strategic plans. So far this year, shares of Nike have declined by more than 44%. This development has posed a risk of removing Nike from the Dow Jones Industrial Average. S&P Dow Jones has removed Nike from the S&P 100 this month as part of a quarterly rebalancing, concluding an 18-year presence on the blue-chip index.
On the economic calendar, attention will be focused on a tracker of business activity within the U.S. manufacturing sector. The Institute for Supply Management’s manufacturing purchasing managers’ index for September is anticipated to register at 54.8, an increase from the 54.6 recorded in August. A reading above 50 indicates expansion. Last month, the measure declined, with some analysts emphasising a potentially diminishing effect from a surge of companies preemptively placing orders to circumvent price increases stemming from the Iran war. Simultaneously, a measure of prices paid by these businesses is expected to rise to 72.9 from 71.1, indicating persistent inflationary pressures as manufacturers express concerns regarding the ramifications of the Middle East conflict and tariffs.
Tencent has entered into a lease agreement valued at $7 billion with Oracle to secure approximately 100,000 advanced artificial intelligence chips, as the Chinese internet conglomerate strives to enhance its position in the competitive AI landscape, according to a report on Thursday. Tencent has entered into a five-year lease agreement encompassing several Oracle data centers located in Southeast Asia, according to a source familiar with the situation, who spoke on the condition of anonymity. The transaction represents Tencent’s largest overseas lease agreement to date, providing the Chinese internet and gaming firm access to approximately 100,000 advanced chips that are not available within China, according to the report. The deal is valued at $7 billion, with an initial payment of approximately 30%, according to the report, and it has impacted Tencent’s free cash flow in its second quarter earnings.
