Key Takeaways

1. OPEC+ Defends Production Boost Amid Initial Price Drop;
2. Nvidia Rises Nearly 2% in Pre-market, Poised to Reach Another All-Time High;
3. Novavax' Stock Surges Over 16%, Vaccine Receives FDA Recommendation;

I. Market Report

USA stock futures were little changed on Thursday morning after the S&P 500 index(SPX.US) notched a new record closing high thanks to a rally in artificial intelligence chip darling NVIDIA Corporation(NVDA.US).

As of 08:30 am, ET (or 15:30 in Riyadh), futures tied to the S&P 500 index(SPX.US) flickered near the flatline, as NASDAQ(IXIC.US)-100 futures added 0.08%. Futures connected to the Dow Jones Industrial Average(DJI.US) slipped 0.11%.

II. Flash Headlines

ISM Survey Boosts Equities Amid Economic Cooling Signs

A series of USA labor market reports this week suggest economic cooling. The ISM service sector survey showed strong growth in May, boosting equities to new records and easing inflation concerns, Reuters reported. Private payrolls grew at the slowest pace since early 2024, while job creation is expected to increase in May.

Analyst Sees Bargains in Small-Cap Stocks

Kornitzer Capital Management’s Chris Carter highlights attractive opportunities in small-cap stocks, despite their underperformance. He favors MarketAxess Holdings Inc.(MKTX.US), Bio-Techne Corporation(TECH.US), and Match Group, Inc.(MTCH.US) for their high margins and growth potential. Carter emphasizes the importance of free cash flow and competitive advantages in his picks.

OPEC+ Defends Production Boost Amid Initial Price Drop

OPEC+ ministers defended their decision to gradually increase crude production starting in October, predicting market acceptance despite an initial 3% drop in crude prices. Saudi Energy Minister Prince Abdulaziz bin Salman emphasized flexibility in production changes, while other key ministers echoed confidence in the policy's long-term benefits.

III. Stocks To Watch

Nvidia Rises Nearly 2% in Pre-market Trading, Poised to Reach Another All-Time High

NVIDIA Corporation(NVDA.US) is up nearly 2% in pre-market trading, indicating a potential new all-time high at the opening. Meanwhile, Microsoft Corporation(MSFT.US) and Apple Inc.(AAPL.US) are trading slightly lower in pre-market. Nvidia's market value surpassed that of Apple yesterday, placing it second in the global market value ranking, second only to Microsoft.

Must read: Nvidia's 10-for-1 split: What to expect?

Antitrust Police Going After Nvidia, Microsoft And OpenAI - NYT

The exclusive $3T market cap club has a new member... and a new antitrust investigation. The fresh probe into NVIDIA Corporation(NVDA.US), Microsoft Corporation(MSFT.US) and Microsoft-backed OpenAI will explore the dominant roles the companies play in the artificial intelligence industry, according to the New York Times. Both the Department of Justice and Federal Trade Commission will be involved in the investigation as advances in generative AI threaten to upend the world as we know it.

Lululemon Surges Over 9% in Pre-market Trading, Q1 Performance Exceeds Expectations

Lululemon Athletica Inc(LULU.US) shares surged 9% as of 08:15 am ET, as the company exceeded expectations in Q1 and raised its FY2025 EPS forecast above consensus. Comparable sales were up 7% on a constant currency basis, with international sales increasing by 25% due to China's strength.

Novavax' Stock Surges Over 16% in Pre-market Trading, Vaccine Receives FDA Recommendation

Novavax, Inc.(NVAX.US) stock is up over 16% in pre-market trading. The stock saw a significant increase of over 18% in yesterday's trading. The news indicates that a FDA advisory panel voted on Wednesday to recommend updating Covid-19 vaccine targeting the dominant JN.1 variant that emerged earlier this year.

Nio's Q1 Revenue Reaches CNY9.9 Billion, with Adjusted Net Loss at CNY4.9 Billion

NIO(NIO.US) released its financial report for the first quarter of 2024. The total revenue for this quarter was CNY9.9086 billion, -7.2% YoY and +42.1% QoQ. The net loss was CNY5.1846 billion, +9.4% YoY, and -3.4% QoQ. Adjusted net loss, not according to the U.S. GAAP, was CNY4.9032 billion, +18.1% YoY, and +2.1% QoQ.

IV. Market Movers

As of 08:25 am, ET (or 15:25 in Riyadh), top pre-market movements are as follows:

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