U.S. stock futures inch lower after record-high rally on Nvidia cheer

Investing.com-- U.S. stock index futures fell slightly in evening deals on Thursday after Wall Street notched record highs on the back of technology gains spurred chiefly by positive earnings and guidance from AI darling NVIDIA Corporation (NASDAQ:NVDA). 

Cheer over Nvidia saw investors largely trade past warnings from the Federal Reserve that interest rates will stay higher for longer- a notion that was further reinforced by stronger-than-expected jobless claims data.

Weak purchasing managers index readings also disappointed for February, as business activity appeared to worsening in the world's largest economy.

S&P 500 Futures fell 0.1% to 5,094.75 points, while Nasdaq 100 Futures fell 0.1% to 18,025.50 points. Dow Jones Futures fell 0.1% to 39,100.0 points by 19:49 ET (00:49 GMT).

The slight easing in futures indicated that Wall Street may be due for some profit-taking after a strong rally this week.

The S&P 500 rose 2.1% to finish at a record-high 5,087.03 points, while the Dow Jones Industrial Average rose 1.2% to a record-high 39,069.11 points. The NASDAQ Composite was the biggest gainer amongst its peers, surging nearly 3% to a record high of 16,041.62 points on Thursday. 

Nvidia sits at record high, but tech gains pause

Tech stocks were by far the best performers on Thursday, with Nvidia extending gains into aftermarket trade. The world’s most valuable chipmaker rose 1.6% after-hours to a record high of $798.00, as its positive fourth-quarter earnings and strong revenue guidance for the current quarter signaled that demand for artificial intelligence remained strong. 

While the trend bodes well for the broader tech sector, gains in other major tech stocks did not spill over into aftermarket trade, as the prospect of higher-for-longer U.S. interest rates saw some caution creep back into markets, especially at such stretched valuations.

Tech megacaps including Alphabet Inc (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META)- all three of which have AI products lined up- traded in a flat-to-low range after clocking strong gains during the session. 

Fed jitters remain in play after hawkish minutes, strong labor data 

Markets remained on edge over U.S. interest rates remaining higher for longer, after the minutes of the Fed’s late-January meeting reiterated that the bank was in no hurry to begin cutting rates. 

A slew of Fed members also echoed this notion, citing fears of sticky inflation and strength in the labor market. An unexpected drop in weekly jobless claims, seen in data released on Thursday- further pointed to a strong labor space. 

Carvana , Block in focus among after-hours movers 

Among other after-market movers, Carvana Co (NYSE:CVNA) jumped over 20% after the used car company forecast core earnings well above $100 million in the first quarter.

Payments firm Block Inc (NYSE:SQ) popped 11% after it beat quarterly revenue estimates and hiked its annual operating profit outlook.

Aerospace firm Intuitive Machines Inc (NASDAQ:LUNR) rallied as much as 50% in aftermarket trade after its Odysseus lunar lander successfully touched down on the moon, becoming the first private craft to do so and the first U.S. craft on the moon since 1972.