The U.S. stock market futures slipped at the start of the week, easing from record highs reached during the previous rally. Investors turned cautious ahead of major earnings, especially from Nvidia, the market’s most valuable stock. This shift highlights how the U.S. stock market futures remain sensitive to both corporate results and Federal Reserve signals.
Dow Jones futures dropped 0.2%, while contracts on the S&P 500 and Nasdaq 100 each fell about 0.3%. This pullback followed a powerful surge on Friday, when the Dow gained over 800 points to close at a new record. The S&P 500 also rose strongly, finishing just below another all-time high, while the Nasdaq Composite jumped 1.9%.
Markets rallied late last week after Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts as soon as September. Optimism over easing policy drove investors into equities, sparking the record-setting gains. However, with the earnings calendar still heavy, traders shifted focus back to corporate fundamentals.
Nvidia’s quarterly earnings take center stage this week. Analysts expect the chipmaker to post earnings of $1.01 per share on $46.13 billion in revenue. Forecasts remain upbeat due to robust demand for AI-related hardware. Investors see this report as a critical test for both the stock and broader markets. The U.S. stock market futures will likely react strongly depending on whether Nvidia meets these high expectations.
Nvidia shares have surged nearly 100% since April, climbing 32% so far this year. The stock now sits close to record levels, reinforcing its role as a driver of market sentiment. Still, any disappointment could trigger a rotation out of tech after weeks of strength. Other key reports this week include Dell and Marvell Technology, both scheduled for Thursday.
Looking beyond earnings, investors are also eyeing fresh inflation data. The July Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred measure, is due on Friday. Economists expect core PCE to rise 2.9% year-over-year, slightly above the previous reading. Any surprise could alter expectations for policy decisions later this year.
In summary, the U.S. stock market futures are cooling after last week’s surge. With Nvidia’s results, additional tech earnings, and new inflation data ahead, investors remain on alert. Market direction may hinge on whether strong earnings offset policy concerns and support continued momentum.
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