Futures were mixed after last week’s slide as the focus turned back to gains via Reuters
(Reuters) – U.S. stock futures were mixed on Monday, as investors awaited key business results, particularly from Nvidia (NASDAQ: ), following a sharp decline on Wall Street last week.
Increased expectations that the Federal Reserve will slow its pace of rate cuts and uncertainty over the impact of the election of US President-elect Donald Trump sent indexes down on Friday.
The Nasdaq and the Nasdaq retreated from record highs, seeing their worst weekly losses in more than two months.
Results from AI-chip heavyweight Nvidia, which reports third-quarter earnings on Wednesday, will be important, as investors assess whether the prospect of AI powering the tech-driven mass market can continue.
Nvidia fell 2.7% in premarket trading. Revenue is forecast to jump more than 80% to $33 billion, according to LSEG data, and the company is expected to post $18.4 billion in revenue.
“Because the recent ‘bits’ of their (Nvidia’s) profits are shrinking in size, this report will have to beat estimates more than comfortably, especially as broader valuations look higher and bond yields are back higher after a short hiatus,” it said. Marc Ostwald, chief economist and global strategist at ADM Investor Services International.
Other megacaps are the best, gaining ground after the index has dropped five times in a row. Alphabet (NASDAQ: ) rose 0.3%, Amazon.com (NASDAQ: ) rose 0.8% while Tesla (NASDAQ: ) rose 8.1%.
Profits from supermarkets including Walmart (NYSE: ), Lowe’s Companies (NYSE: ) and The target (NYSE:) this week will again be under scrutiny for US consumer strength as the important 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 up 4.25 points, or 0.07%, and the E- minis were up 84 points, or 0.41%.
Stock indexes have lost some of the sharp gains made after Trump’s decisive presidential election victory, as hopes for a likely Republican stance to support businesses have given way to a focus on the inflationary impact of his policies and the US Federal Reserve’s outlook. interest rate method.
Chicago Fed President Austan Goolsbee is expected to speak on the day, the first central bank official to be appointed this week. Their comments will be closely followed after Chairman Jerome Powell said the Fed was in no rush to cut rates.
Traders are pricing in a 38% chance the Fed will keep rates on hold in December, according to CME FedWatch.
Still, Wall Street remains well positioned for the end of the year. The benchmark index gained nearly 3% in November and 23% year to date as strong economic data, the presidential election and better earnings sent stocks to record highs.
