On Thursday, S&P Futures exhibited minimal movement as investors processed the earnings reports from Nvidia and Salesforce. Futures associated with the Dow Jones Industrial Average increased by 26 points, representing a 0.1% rise. S&P 500 futures and Nasdaq 100 futures remained near the neutral point. Nvidia shares experienced an increase of over 1% following the company’s announcement of fourth-quarter earnings and revenue that surpassed expectations. Salesforce, however, experienced a decline of 3% following the software company’s projection of lackluster revenue estimates for fiscal 2027. Salesforce has emerged as one of the most significant casualties amid the recent anxieties surrounding artificial intelligence disruption.

The recent developments are a response to a positive day for U.S. equities. The S&P 500 closed Wednesday higher by 0.8%, marking a second consecutive day of gains, while the tech-heavy Nasdaq Composite increased by approximately 1.3%. The 30-stock Dow experienced an increase of approximately 307 points, translating to a rise of 0.6%. Software and technology stocks experienced a rebound during the regular trading session, with Oracle increasing by 1.2% and all of the “Magnificent Seven” tech giants finishing in positive territory. Microsoft, a notable underperformer this year, experienced an increase of approximately 3% on the day.

Nonetheless, sentiment in the software and cybersecurity sectors has exhibited fragility this year, as concerns persist regarding the swiftly advancing capabilities of AI products that may disrupt the operations of established software vendors. “When you look at software right now, the earnings revisions on a one to two-year basis are positive,” stated Abigail Yoder.

“This discussion does not pertain to the future trajectory of software earnings over the next one to two years,” she stated. “This pertains to their terminal value in assigning a specific valuation to that, which I believe the market is currently grappling with.”