US STOCKS-Wall St set for muted open after scorching AI-led rally

Wall Street's main indexes were set to open marginally higher on Friday after a stunning rally in the previous session, spurred by upbeat results from AI poster child Nvidia that renewed enthusiasm about artificial intelligence. The S&P 500 and Dow Jones Industrial Average surged to record closing highs on Thursday, while the tech-heavy Nasdaq was a whisker away from its all-time high, as investors piled into technology stocks with the AI-fueled frenzy on Wall Street gaining more steam.

Wall Street's main indexes were set to open marginally higher on Friday after a stunning rally in the previous session, spurred by upbeat results from AI poster child Nvidia that renewed enthusiasm about artificial intelligence.

The S&P 500 and Dow Jones Industrial Average surged to record closing highs on Thursday, while the tech-heavy Nasdaq was a whisker away from its all-time high, as investors piled into technology stocks with the AI-fueled frenzy on Wall Street gaining more steam. Nvidia added $277 billion in stock market value on Thursday, Wall Street's largest one-day gain in history.

Shares of the heavyweight chip designer were up 2.3% in premarket trade on Friday and the company is closing in on $2 trillion in market value for the first time. "Traders are going to be closely watching Nvidia's move today. Will it hold up? That's a question mark," said Peter Cardillo, chief market economist at Spartan Capital Securities.

"I would suspect at one point or another, the run up is going to run out of steam. Over-exuberance in the market is likely to end up with a noticeable pullback." Most megacap stocks were subdued on Friday, with Tesla , Amazon.com and Apple down between 0.1% and 0.6%.

At 8:25 a.m. ET, Dow e-minis were up 36 points, or 0.09%, S&P 500 e-minis were up 5.75 points, or 0.11%, and Nasdaq 100 e-minis were up 12.25 points, or 0.07%. Among other stocks, Carvana surged 27.4% on reporting its first-ever annual profit, helped by its pact with bondholders to cut its outstanding debt by $1 billion.

Warner Bros Discovery slipped 5.0% on reporting a bigger-than-expected quarterly loss as the media conglomerate battled the fallout of the twin Hollywood strikes on content generation. Super Micro Computer fell 2.7% after it announced pricing of $1.5 billion convertible senior notes.

Jack Dorsey-led Block jumped 15.7% after the payments firm forecast adjusted core earnings for the current quarter above Wall Street estimates, betting on consumer resilience. All the three major indexes were set for weekly gains after turbulence in the prior week when hotter-than-expected inflation data dampened expectations of early interest rate cuts from the U.S. Federal Reserve.

Traders firmed up bets against any U.S. interest-rate cuts before June after Fed Governor Christopher Waller on Thursday said

he was in "no rush" to lower rates.

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