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S&P, Dow futures edge higher ahead of GDP data; Nvidia slides -Breaking


© Reuters. FILE PHOTO – A trader on the New York Stock Exchange, NYSE, in Manhattan, New York City (USA), May 20, 2022. REUTERS/Andrew Kelly

(Reuters) – Futures following the Dow rose Thursday ahead of data which will provide clues about how America’s economy did amid high inflation. However, shares in Nvidia (NASDAQ) dropped after Nvidia’s poor outlook.

At 08:30 AM, the Commerce Department will publish its second assessment of first quarter GDP. ET. These numbers will show an expected 1.3% decrease in quarterly annualized decline, which is slightly less than what was reported in April.

This report comes a day following the Federal Reserve’s minutes from May. These documents showed that policymakers acknowledged the strength of the U.S. economic and household finances. It might prove difficult to convince them to reduce spending or take price pressure off.

Fed policymakers deemed further increases of 50 basis points “likely to be appropriate” during the U.S. central banks’ policy meetings in June/ July. This was largely consistent with investor expectations. This helped U.S. stock prices to rise on Wednesday.

This year, markets have fallen sharply due to increasing concerns about an economic slowdown. These fears are a result of Fed policies to restrain prices’ soaring. Markets are also affected by the war in Ukraine and China’s pandemic-related lockdowns.

The blue-chip Dow and the benchmark S&P 500 are down 11.6% and 16.5% year-to-date, while the tech-heavy Nasdaq has fallen nearly 27% as high-multiple growth stocks took a hit from rising interest rates.

At 06:26 AM. ET were up 77 point, or 0.2%, were up 7 point, or 0.0.18% and down 10.75 percent, or0.09%.

Nvidia Corp Premarket trading fell 5.5% after the chip designer predicted a drop in video-game chips sales in the current quarter and outlined new supply chain snags due to China’s COVID-19 lockdowns.

Apple Inc (NASDAQ) fell 1.5% following a report by media that Apple intends to maintain iPhone production at around 220 million units for 2022.

Twitter Inc (NYSE:) rose 5.6% as Elon Musk promised an additional $6.25billion in equity financing in order to finance his $44-billion social-media offer.