• Tech sector leads rally as Nvidia, Palantir outperform.
  • Easing US-China trade tensions and softer inflation data boost risk appetite.
  • JPMorgan revises US growth outlook upward, drops recession forecast.

Tech and Macro Catalysts Drive Futures Higher

S&P 500 and Nasdaq 100 futures climbed to session highs Thursday, fueled by robust tech earnings and supportive macroeconomic developments. The rally reflects growing investor confidence as trade tensions ease and inflation data comes in cooler than expected.

Nvidia and Palantir were among the standout performers, with chipmakers broadly benefiting from the risk-on sentiment. "The tech sector is acting as the tide lifting all boats," said one trader, speaking on condition of anonymity. "When you have names like Nvidia beating estimates while macro headwinds fade, it creates a perfect scenario for equities."

Trade Truce and Inflation Relief

The gains follow news of a 90-day reduction in US-China tariffs, temporarily cooling tensions that had weighed on markets. April's CPI reading of 0.2% month-over-month - below the 0.3% forecast - further supported the rally by easing concerns about aggressive Fed tightening.

JPMorgan Chase responded to the improved outlook by upgrading its US growth projections and withdrawing its 2025 recession warning. "The data suggests companies are absorbing tariff costs rather than passing them to consumers," noted a bank analyst. "That takes pressure off both inflation and corporate margins."

Mixed Sector Performance

While tech soared, healthcare lagged after UnitedHealth Group suspended its outlook amid leadership changes. The divergence highlights how sector-specific factors continue to create pockets of volatility even in a rising market.

Futures activity suggests traders are positioning for continued strength, though some caution remains. VIX futures ticked higher even as equities rose, signaling expectations for ongoing volatility despite the bullish momentum.

Editor's Note: An earlier version misstated the month of the CPI data; it has been corrected to reflect April figures.