U.S. stock futures edged higher on Thursday, following a technology-fueled rally on Wall Street in the previous session. OpenAI is reportedly in talks to raise capital at a $150 billion valuation, potentially cementing the company’s reputation as the poster child of bullish enthusiasm for artificial intelligence. Elsewhere, Boeing (NYSE:BA) workers in the U.S. Pacific Northwest are likely to reject a temporary labor agreement and support a possible work stoppage, media reports said.
- Futures are on the rise
U.S. stock futures moved higher on Thursday, pointing to an extension of the technology-fueled stock rally in the previous session.
By 03:37 ET (07:37 GMT), the Dow had added 83 points, or 0.2%, the S&P 500 had gained 12 points, or 0.2%, and the Nasdaq 100 had gained 56 points or 0.3%.
Wall Street’s key averages advanced on Wednesday, with the tech-heavy Nasdaq Composite in particular posting its biggest daily gain in a month.
Shares of artificial intelligence maker Nvidia (NASDAQ:NVDA) (NASDAQ:NVDA) (more below) rose, boosting shares of major tech companies and supporting a rally in stocks after the morning sell-off in the wake of U.S. inflation data in August.
While data showed month-on-month consumer price growth had equaled July’s pace, the “core” gauge – stripping out volatile items such as food and fuel – had accelerated slightly. The result boosted expectations that the US Federal Reserve will pursue a more measured rate cut of 25 basis points at its next policy meeting on September 17-18, rather than a more aggressive 50 basis point cut.
- Global chip makers rally after Nvidia’s rise
Global semiconductor groups rose on Thursday after shares of Nvidia rose.
SK Hynix (KS:000660), Hon Hai Precision Industry (TW:2317) and Advantest Corp. (TYO:6857) — all Nvidia suppliers — moved higher in Asian trade, as Japan’s Tokyo Electron Ltd. (TYO:8035) and Renesas Electronics Corp . (TYO:6723). In Europe, ASM International (AS:ASMI) (AS:ASMI), ASML Holding (AS:ASML) and STMicroelectronics (EPA:STMPA) were in the green in early trade.
The moves come after Nvidia’s share price surged 8.2% on Wednesday, its biggest daily gain in six weeks. The stock was trading just below the flat line in extended trading hours.
- OpenAI in talks to raise capital at $150 billion valuation – reports
OpenAI is in talks to raise capital at a valuation of $150 billion, according to reports, potentially cementing its position as an AI powerhouse and one of the world’s most valuable startups.
The company is considering raising $6.5 billion in equity capital and is also in talks with banks for a $5 billion credit line, Bloomberg News reported, citing people familiar with the matter.
The $150 billion valuation is nearly double the $86 billion it was valued at earlier this year. According to the Financial Times, venture capital firm Thrive Capital is leading the funding round, while other prospective backers include Apple (NASDAQ:AAPL), Nvidia and Microsoft (NASDAQ:MSFT).
OpenAI’s popularity skyrocketed with the release of the ChatGPT bot in 2022, which helped spark a wave of excitement around the potential applications of artificial intelligence.
- Boeing workers will vote on the interim agreement
Boeing could face a strike as early as Friday if about 33,000 of the aerospace company’s workers in the US Pacific Northwest vote to start a work stoppage and reject an interim labor agreement.
The company had previously reached a tentative agreement on a 25 percent wage increase, along with a commitment to build a new plane in the Pacific Northwest, better pension benefits and increased union involvement in aircraft quality.
But the workers, who are represented by the International Union of Engineers District 751, are likely to reject the deal Thursday, according to media reports. The workers are reportedly demanding bigger pay raises and other improvements in the deal.
A labor action would increase scrutiny of Boeing’s new CEO Kelly Ortberg, who is currently trying to improve Boeing’s finances and restore its reputation after a dangerous mid-air hatch breach in January. Ortberg has warned workers that a strike would put that recovery “at risk”.
- Jumps in oil
Oil prices rose in European trade on Thursday as expectations of supply disruptions in the wake of Hurricane Francine eased lingering concerns about a slowdown in global crude demand.
Hurricane Francine made landfall in Louisiana on Wednesday after passing through the Gulf of Mexico, where several oil companies have curtailed or suspended operations in the storm’s path.
Expectations of tighter supplies helped crude recover from near three-year lows hit earlier this week, although, with the storm expected to dissipate after landfall, traders are beginning to focus again on demand concerns .
Brent crude futures for November delivery rose 1.6% to $71.71 a barrel, while West Texas Intermediate crude futures climbed 1.5% to $67.57 a barrel by 03:38 Greek time.
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