Key Points
- U.S. stock futures are up, but caution remains ahead of Nvidia’s earnings and the return of economic data.
- The end of the government shutdown means key data on jobs and inflation will be released this week, which will influence the Fed’s next move.
- Nvidia’s earnings on Wednesday are seen as a major test for the AI-fueled market rally.
- Oil prices are stable after a Friday surge caused by a temporary supply disruption at a Russian port.
U.S. stock futures rose on Monday, but investors remained on edge as they awaited the return of official U.S. economic data and the highly anticipated earnings report from the artificial intelligence star, Nvidia.
As of 05:46 ET, Dow Jones Futures were down by 0.65%, S&P 500 Futures dropped slightly by 0.05%, and Nasdaq 100 Futures rose 0.06%. The main stock indexes finished mixed on Friday, with the tech-heavy NASDAQ outperforming as tech stocks bounced back. However, the markets have seen sharp losses over the past two weeks as investors have lowered their expectations for a Federal Reserve interest rate cut in December.
Now that the long U.S. government shutdown is over, key economic data is set to be released this week, including new numbers on employment and inflation. A major release will be the September U.S. jobs report, due on Thursday. These numbers will be a big factor in the Federal Reserve’s final interest rate decision of the year in December. The market now sees just over a 40% chance of a rate cut next month, down from over 60% earlier this month.
In the corporate world, the main event of the week will be Nvidia’s earnings report, which will be released after the market closes on Wednesday. This report is seen as a major test for the entire AI-driven bull run.
While analysts expect another strong quarter from the company, expectations are incredibly high for the chipmaker, which trades at a massive $5 trillion valuation. Adding to the caution, filings over the weekend showed that billionaire investor Peter Thiel sold his nearly $100 million stake in the company.
Beyond Nvidia, earnings reports are also due this week from major retailers like Target and Walmart, which will provide more insight into the health of the U.S. consumer.
In the commodity markets, oil prices were stable after big gains on Friday. Brent futures dropped 0.2% to $64.28 a barrel, while U.S. West Texas Intermediate crude futures rose 0.1% to $59.99 a barrel. Both had jumped more than 2% on Friday after a Ukrainian attack on a Russian port caused supply disruptions. However, by Sunday, reports indicated that oil was once again being loaded at the port.
