Futures linked to the Dow Jones Industrial Average moved higher on Thursday night, extending momentum after strong gains in value-focused sectors pushed both the Dow and the S&P 500 to new record highs.
Dow futures rose 56 points, or about 0.1%, while S&P 500 futures hovered near flat. Meanwhile, Nasdaq 100 futures slipped roughly 0.2%, reflecting pressure on tech shares.
In extended trading, Broadcom dropped nearly 5%, despite delivering better-than-expected fourth-quarter earnings and issuing a strong forecast driven by a potential doubling of AI chip sales. In contrast, Lululemon surged 10% after announcing the unexpected exit of its CEO in January following a year of soft performance.
Earlier on Thursday, investors shifted money into cyclical and economically sensitive stocks while trimming positions in AI-heavy growth names. This rotation came on the heels of the Federal Reserve’s third interest-rate cut of the year, signaling confidence in the broader economic outlook.
Both the Dow and S&P 500 closed at fresh highs in the previous session. The Nasdaq Composite, however, slipped 0.3% as major tech players like Alphabet and Nvidia pulled back. The Dow’s 646-point rally (1.3%) was boosted by strong performances from Visa, Nike, and UnitedHealth Group.
“The Dow had a fantastic day, and if this trend continues, it could mark the start of a broadening market rally,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “For the bull market to sustain, the rest of the market—the so-called ‘493’—must keep rising even without the Magnificent 7 leading. If this handoff happens, we could see continued gains into the end of the year and early next year.”
So far this week, the S&P 500 has gained 0.45%, while the Dow is up nearly 1.6%. The Nasdaq continues to lag with gains of less than 0.1%. Meanwhile, small-cap stocks are outperforming, with the Russell 2000 climbing 2.7% for the week and hitting a new all-time high on Thursday.
Broadcom, Lululemon, and Costco Lead Thursday’s After-Hours Stock Movers
Here’s a look at the major stocks making waves in after-hours trading on Thursday:
Broadcom
Broadcom shares slid nearly 5% in extended trading despite the chipmaker surpassing Wall Street’s fourth-quarter expectations. The company also projected that AI chip sales will double in the current quarter, reaching $8.2 billion. Broadcom forecasted first-quarter revenue of $19.1 billion, representing a strong 28% year-over-year growth, easing concerns about weakening AI demand. Even with the pullback, Broadcom shares remain up 75% year-to-date, including a 15% rise over the past month.
Lululemon Athletica
Shares of Lululemon surged around 10% after the athletic wear giant announced that its CEO will step down on January 31, following more than a year of weak performance. The company said its board is partnering with a “leading executive search firm” to find a successor. Despite the after-hours jump, Lululemon stock is still down approximately 51% year-to-date.
Costco
Costco shares dipped slightly—less than 1%—in after-hours trading. The retail giant beat analysts’ quarterly expectations as sales rose 8.2% year-over-year. Costco, which typically does not issue full-year guidance, continued to show strong demand across its product categories.
U.S. Stock Futures Edge Higher After the Bell
Shortly after 6 p.m. ET on Thursday, futures showed mild movement.
S&P 500 and Nasdaq-100 futures ticked up less than 0.1%
Dow Jones Industrial Average futures rose 118 points (0.2%)
