Futures Rise, Nvidia Soars, Boeing Union Vote Outcomes

US stock futures experienced a slight increase on Thursday following a technology-driven rally on Wall Street during the previous session. Reports indicate that OpenAI is in discussions to raise funds at a staggering valuation of $150 billion, which may further establish its role as a leader in the artificial intelligence sector. Meanwhile, employees at Boeing in the US Pacific Northwest are expected to reject a tentative labor agreement, raising the possibility of a work stoppage.

1. Futures Rise

US stock futures rose on Thursday, suggesting a continuation of the tech-influenced upswing in stocks from the prior session. By 03:37 ET (07:37 GMT), futures for the Dow Jones Industrial Average climbed 83 points or 0.2%, those for the S&P 500 increased by 12 points or 0.2%, and the Nasdaq gained 56 points or 0.3%. Major stock indices on Wall Street advanced on Wednesday, with technology-focused stocks seeing their largest daily increase in a month.

A notable jump in shares of Nvidia boosted major technology stocks and contributed to a rebound in equities after a morning sell-off that followed inflation figures released for August. While the data indicated that overall consumer price growth matched July’s rate on a monthly basis, the core measure—excluding food and fuel—had slightly accelerated. This outcome has led to heightened expectations for the Federal Reserve to implement a more cautious 25-basis point interest rate reduction at its next meeting on September 17-18, as opposed to a more aggressive 50-basis point cut.

2. Semiconductor Stocks Surge After Nvidia’s Gains

Global semiconductor manufacturers rose on Thursday in response to Nvidia’s impressive stock performance. Companies such as SK Hynix and Hon Hai Precision Industry, along with other Nvidia suppliers, saw their stocks increase in Asian trading. Japanese firms Tokyo Electron and Renesas Electronics also benefited from the uplift. In Europe, stocks for ASM International, ASML Holding, and STMicroelectronics saw positive movements in early trading. Nvidia’s stock soared by 8.2% on Wednesday, marking its largest one-day gain in six weeks, although it was fluctuating around the flatline during after-hours trading.

3. OpenAI to Raise Funds at $150 Billion Valuation

OpenAI is reportedly negotiating to secure funding at a valuation of $150 billion, according to news sources, which could solidify its position as a significant player in the AI space and one of the world’s most valuable startups. The company is exploring the possibility of raising $6.5 billion in equity financing and is also discussing a $5 billion credit line with banking institutions. The valuation would be nearly double the $86 billion figure from earlier this year. Venture capital firm Thrive Capital is reportedly leading this funding round, with other potential investors including Apple, Nvidia, and Microsoft. OpenAI’s rise to prominence can be traced back to the release of its ChatGPT bot in 2022, which generated considerable excitement about the potential uses of AI.

4. Boeing Workers Consider Possible Strike

Boeing may soon face a strike if approximately 33,000 of its workers in the US Pacific Northwest decide to vote in favor of a work stoppage, rejecting a tentative labor deal. The proposed agreement included a 25% pay increase, plans for a new aircraft to be built in the region, enhanced retirement benefits, and increased union involvement in aircraft quality. However, reports suggest that employees, represented by the International Association of Machinists District 751, are likely to turn down the deal in favor of larger wage increases and further improvements. A labor action could significantly challenge new CEO Kelly Ortberg’s efforts to stabilize Boeing’s finances and repair its reputation following recent safety concerns.

5. Oil Prices Surge

Oil prices picked up during European trading hours on Thursday, driven by fears of supply disruptions due to Hurricane Francine, which made landfall in Louisiana the previous day. Several oil companies had previously curtailed or halted operations in the storm’s path. The potential for tighter supplies allowed crude to rebound from near three-year lows experienced earlier in the week. However, as the storm is expected to dissipate after making landfall, traders are beginning to refocus on ongoing demand concerns. Crude oil futures set to expire in November rose by 1.6% to $71.71 per barrel, while other crude futures climbed 1.5% to $67.57 per barrel.