U.S. stock futures rose on Thursday as Nvidia’s premarket surge lifted the tech sector, while the Swiss Market Index (SMI) retreated as heavyweights weighed on the benchmark. Nvidia shares jumped 5.9% in premarket trading following its latest earnings report, driving Nasdaq futures up 1.00% and S&P 500 futures 0.44%.
The SMI fell 0.9% to 14,419 points, while the broader Swiss Performance Index (SPI) declined 0.7% to 20,296. The tech-driven gains in the U.S. contrasted with caution in Switzerland’s defensive-heavy index, where investors remained cautious ahead of the Federal Reserve’s annual Jackson Hole symposium. Fed Chair Kevin Warsh’s speech, scheduled for Friday afternoon European time, is expected to provide signals on the central bank’s near-term interest-rate path. The prior day’s release of the personal consumption expenditures (PCE) price index showed inflation remained elevated, while U.S. personal income rose more than forecast, reinforcing expectations for at least one more rate hike in 2024.
Oil prices eased below $90 per barrel, with Brent crude trading at $87.01, as hopes grew for a potential easing of tensions around the Strait of Hormuz. Iran and Oman were reported to be negotiating an agreement to control the critical shipping lane, which handles a significant portion of global oil and gas transit. The Strait of Hormuz has been a flashpoint amid ongoing geopolitical tensions in the region.
In Swiss equities, Givaudan slumped 3.6% after Morgan Stanley downgraded the stock to “Underweight,” citing weaker-than-expected fragrance performance and limited margin expansion potential. The bank noted that Givaudan’s aroma segment had lagged competitors for multiple quarters, prompting profit-taking after a nearly 7% gain over the past six trading sessions. Kühne+Nagel fell 2.7% following reports of a U.S. Bureau of Industry and Security (BIS) investigation into its Singapore-based subsidiary Apex over alleged illegal shipments of Nvidia AI chips to China. A Kühne+Nagel spokesperson confirmed the investigation to AWP.
The SMI’s declines were led by declines in heavyweights Nestlé (-1.6%), Novartis (-1.1%) and Roche (-0.8%). Nestlé’s stock has declined sharply from its July high of 87.09 francs, and Zürcher Kantonalbank (ZKB) downgraded its rating to “Market Weight” from “Overweight.” ABB (+0.7%) was among the few gainers, supported by Nvidia’s strong results, alongside smaller caps such as AMS Osram (+2.1%), Comet (+1.6%), Inficon (+0.8%), Huber+Suhner (+2.4%) and VAT (+1.4%). Accelleron (+2.4%) and Feintool (+4.6%) also advanced after reporting strong earnings.
Gurit surged 10% to 39.00 francs, marking its highest level since early July, while the SMI ended 1% lower at 14,400 points and the SPI fell 0.7% to 20,286. Analysts at Swissquote noted that Nvidia’s earnings had exceeded even the most optimistic expectations, temporarily easing concerns about a slowdown in the AI boom.
