(Reuters) – U.S. index futures were subdued on Tuesday as investors refrained from placing big bets ahead of AI chip leader Nvidia’s gains this week and due to policy caution from Federal Reserve officials ahead of the minutes of the central bank’s meeting.
Rate setters have provided little guidance on the timing of rate cuts this year, and several Fed officials on Monday refrained from setting a moderation in inflation to the 2% target, despite recent data suggesting easing pressure on consumer prices.
That weighed on market sentiment, with investors now awaiting intraday comments from officials including Christopher Waller, Thomas Barkin, Raphael Bostic and Michael Barr ahead of Wednesday’s final Fed minutes.
Technology stocks started the week strong, pushing the tech-heavy Nasdaq to closing highs on Monday, while the S&P 500 edged closer to its all-time high last week.
Nvidia’s quarterly results on Wednesday are also in the spotlight, which will likely be a major market trigger and a litmus test for the success of the generative AI boom.
Data from options analytics firm Trade Alert shows Nvidia’s options are poised for an 8.7% swing in either direction by Friday, translating into a market cap of $200 billion.
“In the case of Nvidia, the confidence surrounding the artificial intelligence boom is more than just hype… It has real substance,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
At 5:28 a.m. ET, the Dow e-minis were up 3 points (0.01%), the S&P 500 e-minis were up 0.5 points (0.01%) and the Nasdaq 100 e-minis were up 27 points (0.01%). 14%) lower.
Among other individual gainers, Palo Alto Networks fell 7.9% in premarket trading after fourth-quarter billing expectations disappointed investors.
Peloton Interactive fell 2.8% as the fitness equipment maker looked to refinance its debt to regain its footing amid declining sales.
Li Auto’s US-listed shares lost 4.5% after the Chinese company postponed plans to launch pure electric SUV models until next year.
(Reporting by Ankika Biswas in Bengaluru; Editing by Devika Syamnath)
