U.S. index futures rose in pre-market trading on Thursday as investors reacted to Nvidia’s earnings. Although the AI chip giant exceeded expectations in sales and profits, the market reaction was negative, reflecting disappointment with the growth magnitude, illustrating the pressure on high-tech companies to consistently surpass high expectations. Investors are also awaiting reports from major retailers and key economic data.

As of 5:09 AM ET, Dow Jones (DOWI:DJI) futures gained 206 points, or 0.50%. S&P 500 futures gained 0.10%, and Nasdaq-100 futures advanced 0.05%. The 10-year Treasury yield stood at 3.822%.

In today’s U.S. economic calendar, at 8:30 AM ET, initial jobless claims for the week ending August 24 are projected at 230,000, a slight decrease from 232,000 the previous week. The second quarter’s advance GDP report is expected to confirm a 2.8% growth. Additionally, the July goods trade balance will be closely watched, particularly after the previous month’s $96.6 billion deficit. Moreover, advanced data on the goods trade balance, retail inventories, and wholesale inventories for July will be released. At 10:00 AM, pending home sales for July are expected to show a modest 0.1% increase, following a 4.8% rise in June.

In the commodities market, oil prices fell after two sessions of losses, influenced by a smaller-than-expected drop in U.S. crude oil inventories and concerns over Libyan supply. Libya is facing production disruptions due to internal disputes, which could impact OPEC+ supply plans.

West Texas Intermediate crude for October fell 0.44% to $74.19 per barrel, while Brent for October fell 0.55% to $78.22 per barrel.

Aluminum (CCOM:ALUMINUM) dropped nearly 4% since Tuesday after hitting a two-month high, due to abundant supply and weak demand in China. The spot price discount to the three-month contract suggests ample supplies. Other metals also retreated, influenced by reduced risk appetite in the financial market.

Asia-Pacific markets mostly closed lower on Thursday. South Korea’s Kospi fell 1.02% due to losses in SK Hynix and Samsung, and the Kosdaq declined 0.85% for the seventh consecutive day. Taiwan’s weighted index dropped 0.75%, pressured by declines in Taiwan Semiconductor and Foxconn. Japan’s Nikkei 225 saw a slight drop, while the Topix rose marginally. Australia’s S&P/ASX 200 fell 0.33%. Mainland China’s CSI 300 lost 0.27%. Hong Kong’s Hang Seng recovered with a 0.47% gain in the final hour of trading.

In Japan, investors are expected to buy a record $47.3 billion (¥6.83 trillion) in foreign bonds in August, the largest amount in 17 years. The rise in global debt and falling currency hedging costs, coupled with the yen’s appreciation, make foreign bonds attractive.

In China, the 2024 growth target is becoming less likely as UBS cuts its forecasts. The real estate crisis and tight fiscal policy are affecting growth, now estimated at 4.6% for this year and 4% for 2025. Weak earnings reports and a lack of significant government stimulus suggest the 5% target may not be met. The real estate crisis and low consumer confidence contribute to economic difficulties.

U.S. President Joe Biden and Chinese President Xi Jinping are expected to communicate by phone in the coming weeks. U.S. National Security Advisor Jake Sullivan is in China meeting with diplomat Wang Yi, with discussions on artificial intelligence underway. High-level communication between the leaders, strained by recent tensions, is being resumed.

Chinese tech giant Huawei reported an 18% increase in net profit and a 34% rise in revenue in the first half, reaching $7.7 billion in profit and $58.7 billion in revenue. Growth was driven by strong smartphone sales and success in the smart car components sector, despite U.S. sanctions.

In South Korea, the Financial Supervisory Service (FSS), the financial regulator, demanded that creditors resolve problematic loans by September 6. Exposure to project financing reached $162 billion, with 9.7% considered risky. Projects with loans overdue for more than three months should be auctioned to improve financial health and restore confidence. Additionally, the FSS is adjusting feasibility assessment criteria and supporting the restructuring of unviable projects. For projects classified as “normal,” the FSS will encourage maturity extensions to ensure business continuity.

South Korea’s SK Hynix (KOSPI:000660) launched the first 10-nanometer sixth-generation DRAM chip, with 9% more energy efficiency than the previous model. The 16Gb 1c DDR5 chip can reduce electricity costs in data centers by up to 30%, especially useful during the AI boom. Mass production will begin next year. Despite this, the company’s shares closed down 5.35%, influenced by declines in Nvidia’s stock.

In Singapore, Singapore Exchange Ltd.’s head of capital markets, Matthew Song, is leaving after one year in the role. Song, who led the merger of SGX’s capital market divisions, resigned this week and will depart later this year.

European markets opened higher on Thursday, boosted by the tech sector following Nvidia’s strong earnings. Pernod Ricard (EU:RI) shares rose 5.3% due to optimistic sales forecasts, despite a 1% annual decline in net sales. Additionally, China’s Ministry of Commerce opted not to impose anti-dumping duties on EU cognac, generating optimism.

In Spain, preliminary inflation data indicated a 2.2% index in August. In Germany, inflation fell in six key states in August, with rates ranging from 1.5% to 2.6%. These data suggest a possible national inflation drop to 2.3%, down from 2.6% the previous month. Germany will release these numbers ahead of eurozone data, which is expected to show 2.2% inflation.

European car sales grew only 0.4% to 1.03 million units in July. Demand for electric vehicles fell, particularly in Germany, which saw a 37% decline. Reduced incentives and economic weakness weighed on sales, with hybrids being the biggest winners.

U.S. stocks fell on Wednesday, with tech sector weakness weighing on markets. The Dow Jones dropped 0.39%, the S&P 500 fell 0.60%, and the Nasdaq lost 1.12%. Nvidia (NASDAQ:NVDA), which fell 2.1%, raised concerns ahead of its quarterly results, while other sectors, including semiconductors and computer hardware, also saw significant declines.

Before the market opens, Best Buy  (NYSE:BBY), Dollar General  (NYSE:DG), American Eagle Outfitters  (NYSE:AEO), Ollie’s Bargain Outlet  (NASDAQ:OLLI), Campbell Soup  (NYSE:CPB), Burlington Stores  (NYSE:BURL), Birkenstock  (NYSE:BIRK), 1-800-Flowers.com  (NASDAQ:FLWS), Atour Group  (NASDAQ:ATAT) and Stratasys  (NASDAQ:SSYS) will report their quarterly results.

After the close, numbers from Dell Technologies  (NYSE:DELL), Lululemon Athletica  (NASDAQ:LULU), Ulta Beauty  (NASDAQ:ULTA), Marvell Technology  (NASDAQ:MRVL), Gap Inc.  (NYSE:GPS), Autodesk  (NASDAQ:ADSK), MongoDB  (NASDAQ:MDB), 3D Systems  (NYSE:DDD), A-Mark Precious Metals  (NASDAQ:AMRK), and Elastic  (NYSE:ESTC), are expected.