(Reuters) – U.S. stock futures were mixed on Monday as investors awaited major corporate results, particularly from Nvidia, following a sharp selloff on Wall Street last week.
The index fell on Friday on rising expectations that the Federal Reserve will slow its rate of rate cuts and uncertainty over the impact of President-elect Donald Trump's Cabinet changes.
The S&P 500 and Nasdaq have fallen from all-time highs, posting their worst weekly declines in more than two months.
AI chip giant Nvidia's performance, which will report third-quarter results on Wednesday, will be critical as investors gauge whether the AI optimism that has been responsible for much of the market's technology-driven rally can continue. .
Nvidia fell 2.7% in premarket trading. Sales are expected to increase more than 80% to $33 billion, and net income is expected to be $18.4 billion, according to LSEG data.
“Given[NVIDIA's]recent earnings 'performance' trend of contraction, especially given that broad-based valuations are much higher and bond yields are starting to rise after a lull,” he said. , this report will have to more than comfortably exceed expectations.'' Mark Ostwald, chief economist and global strategist at ADM Investor Services International.
Other mega-cap stocks rose slightly, with Nasdaq 100 futures rising after five straight sessions of declines. Alphabet rose 0.3%, Amazon.com rose 0.8% and Tesla jumped 8.1%.
Earnings from major retailers such as Walmart, Lowe's Companies and Target will also be under scrutiny this week to gauge the strength of U.S. consumers as the major holiday shopping season begins.
As of 5:35 a.m. ET, the Dow E-mini was down 82 points, or 0.19%, the S&P 500 E-mini was up 4.25 points, or 0.07%, and the Nasdaq 100 E-mini was up 84 points, or 0.41%. .
Stock indexes have lost some of the big gains they gained following Trump's decisive presidential election victory, as optimism about the Republican Party's potentially pro-business stance puts his policies inflated. This is because the focus has shifted to the impact of the pandemic and the outlook of the US Federal Reserve Board (Fed). interest rate pass.
Today, Chicago Fed President Austan Goolsby is scheduled to give the first of several central bank officials scheduled to speak this week. Their comments will be closely watched after Chairman Jerome Powell said the Fed is in no hurry to cut rates.
Traders are pricing in a 38% chance that the Fed will keep interest rates unchanged in December, according to CME FedWatch.
Still, Wall Street remains fairly well positioned heading into the end of the year. The benchmark index rose nearly 3% in November and is up 23% year-to-date, as strong economic data, the presidential election and generally positive earnings results pushed stocks to record highs.
(Reporting by Lisa Matakkal in Bengaluru; Editing by Pooja Desai)
