Stock Futures Dip as S&P 500 Inches Closer to 5,000 Milestone; Disney and Arm’s Strong Earnings Fuel Market Optimism

NEW YORK – Stock futures in the United States slipped on Thursday morning following the close of the regular session that saw the S&P 500 approach the significant milestone of 5,000. Dow Jones Industrial Average futures were down 31 points or 0.1%, while S&P 500 and Nasdaq 100 futures hovered near the flatline.

In after-hours trading, Disney shares saw a remarkable surge of about 6% after the media giant exceeded quarterly earnings expectations and raised its guidance. Chipmaker and designer company Arm also experienced a substantial boost, with shares jumping 23% in extended trading due to better-than-expected earnings and a positive profit forecast.

On Wednesday, the S&P 500 climbed 0.8% to 4,995.06, as the technology sector continued to drive the rally. The ongoing fourth-quarter earnings season has proven to be stronger than anticipated, fueling investor confidence in the economy’s ability to sustain corporate profits.

Leading technology companies, such as Meta Platforms, Nvidia, and Microsoft, all saw their stock prices rise, with Meta Platforms surging 3% and Nvidia and Microsoft each increasing by 2% to reach fresh record highs. The Nasdaq Composite also surged nearly 1%, setting yet another all-time closing high, while the Dow rallied approximately 150 points.

According to Adam Crisafulli, founder of Vital Knowledge, the market has been influenced positively by three major factors—disinflation, a dovish monetary pivot, and resilient earnings—since November. These factors continue to exert upward pressure on the market.

Investors will be closely monitoring the release of fresh jobless claims data on Thursday, as it will provide insights into the health of the labor market.