(Reuters) – U.S. stock futures were mixed on Monday as investors awaited key corporate results, especially from Nvidia, after significant declines on Wall Street the week before.
Rising expectations that the Federal Reserve will slow the pace of interest rate cuts and uncertainty about the impact of newly-elected US President Donald Trump’s cabinet appointments caused indexes to plummet on Friday.
The S&P 500 and Nasdaq retreated from record highs to post their biggest weekly losses in more than two months.
Results from AI chip heavyweight Nvidia, which reports third-quarter earnings on Wednesday, will be crucial as investors assess whether the AI ​​optimism driving much of the tech-driven The markets’ rally can continue.
Nvidia fell 2.7% in premarket trading. According to LSEG data, revenue is expected to rise more than 80% to $33 billion, and the company is expected to post a net profit of $18.4 billion.
“Given that more recent (Nvidia’s) earnings numbers have declined in size, this report should easily beat estimates, especially with broader valuations looking quite lofty and bond yields moving higher again after a brief delay,” the spokesperson said. Marc Ostwald, chief economist and global strategist at ADM Investor Services International.
Other megacaps moved higher, with Nasdaq 100 futures gaining ground after the index fell for five straight sessions. Alphabet rose 0.3%, Amazon.com rose 0.8%, while Tesla rose 8.1%.
Earnings at major retailers including Walmart, Lowe’s Companies and Target will also be under scrutiny this week to gauge the strength of the American consumer as the prime holiday shopping season gets underway.
At 5:35 a.m. ET, the Dow E-minis were down 82 points (or 0.19%), the S&P 500 E-minis were down 4.25 points (or 0.07%), and the Nasdaq 100 E-minis were down 84 points ( or 0.41%) higher.
Stock indexes have lost some of the sharp gains made in the wake of Trump’s decisive victory in the presidential election, as optimism about the Republican’s potentially pro-business stance has given way to a focus on the inflationary impact of its policies and prospects for the US Federal Reserve. interest path.
Chicago Fed President Austan Goolsbee is expected to speak on that day, the first of several central bank officials scheduled this week. Their comments will be closely watched after Chairman Jerome Powell said the Fed was in no rush to cut rates.
According to the CME FedWatch, traders estimate a 38% chance that the Fed will leave rates unchanged in December.
Still, Wall Street remains reasonably well positioned heading into the end of the year. The benchmark index is up nearly 3% in November and 23% this year as solid economic data, the presidential election and generally positive earnings numbers have pushed stocks to record highs.
(Reporting by Lisa Mattackal in Bengaluru; Editing by Pooja Desai)
