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U.S. futures pause after rebounding

The Elite Times TeamBy No Comments3 Mins Read

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U.S. stock futures took a breather on Friday as investors considered what would happen after a record rally sparked by explosive profits for AI chipmaker Nvidia (NVDA).

S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) futures hovered around the flatline, closing at all-time highs on Thursday. The Nasdaq 100 (^NDX) contract also slumped after the tech stock ratio rose 3% to a new record high.

After the global breakout, stocks held steady, increasing NVIDIA’s market value by about $277 billion, the largest single-day gain in Wall Street history. The company’s meteoric rise continued in Friday’s pre-market, with the company up about 2% and on track to be valued at more than $2 trillion.

As the AI ​​frenzy begins to subside, the possibility of a U.S. interest rate cut is back on the market’s radar. A parade of Federal Reserve officials emphasized that a rate cut was coming, but not right away, although opinions differed on when the shift would begin.

read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards

A strong fourth-quarter earnings season is coming to an end, with more than a third of reports so far beating expectations. Shares of fintech companies soared after Block Corp. (SQ)’s positive earnings forecast, while Carvana Inc. (SQ) shares soared after the used car retailer reported its first annual profit.

live1 update

  • Old technology + new technology = Reddit IPO

    Here are some interesting facts from Reddit’s IPO filing last night. I read it, so you don’t have to – you’re welcome! The listing is likely to be downgraded towards the second half of March, sources said.

    Overall, I’m really fascinated with how Reddit has been received by investors during the roadshow and then in the public markets. First, we introduce an old technology business model (reliant on advertising revenue) that is trying to make money with a new business model (licensing content to train AI platforms – see Google News). But even as old technology business models move into new areas, they continue to suffer heavy losses.

    This appears to be a market that only rewards money-making technology companies – see Nvidia (NVDA), among others.

    So will investors overlook the losses and reliance on ad sales and see Reddit as a bet on an explosive future of AI use?I’m interested in your opinion, so please contact me at @BrianSozzi.

    We will now explore the market outlook.

    In the meantime, here’s what we should do I know:

    • AI kingmaker Sam Altman is Reddit’s fourth largest shareholder.

    • Tencent is Reddit’s second largest shareholder.

    • CEO Steve Huffman’s total compensation in 2023 was $193.2 million, including $93.7 million in option compensation and $98.3 million in stock compensation.

    • Key Call: “Stephen Huffman, our Chief Executive Officer, owns 662,447 PRSUs of our Class B common stock, available for issuance upon the satisfaction of this vesting condition. will be deemed satisfied based on the Company achieving a market capitalization valuation of $5 billion following this offering.” “

    • Co-founder Alexis Ohanian is not mentioned in the S-1 (he resigned from the board in 2020).

    • The story of GameStop (GME) and AMC (AMC) meme stock trades a few years back was mentioned in the company’s risk factors section.

    • For the past two years combined, the company recorded an adjusted EBITDA loss of approximately $178 million.



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