Key Takeaways

• Futures advance: S&P 500 futures rose 0.3%, Nasdaq 100 futures climbed 0.6%, and Dow futures added 0.1%.
• Bond sell-off eases: Yields stabilized after last week’s surge, but inflation worries remain front and center.
• Friday’s rout: The Dow fell 1.1%, S&P 500 dropped 1.2%, and Nasdaq lost roughly 1.5% on rising yields and oil prices.
• Seven-week winning streak: Despite Friday’s slump, the S&P 500 still notched a seventh consecutive weekly gain.
• Records held: Both the S&P 500 and Nasdaq hit all-time highs last week.
• Hot inflation lingers: Yields remain elevated after data reinforced expectations the Fed may keep rates higher for longer.
• Nvidia earnings Wednesday: The AI giant’s results will signal whether the megacap tech rally can continue.
• Walmart Thursday: The retail giant’s report will offer clues on whether high fuel costs are denting consumer spending.
• Iran impasse persists: Investors watch for any breakthrough in the standoff between Washington and Tehran.

U.S. stock index futures ticked higher on Monday, as a global bond sell-off eased and yields stabilized. Still, the topic of inflation and tighter monetary policy to combat it remained firmly in the spotlight.

Investors were also keeping an eye out for any breakthrough in the continued impasse between the United States and Iran. This week will also see quarterly earnings from artificial intelligence heavyweight Nvidia.

At 08:54 ET (12:54 GMT), S&P 500 futures were up 0.3%, Nasdaq 100 futures climbed 0.6%, and Dow futures added 0.1%.

Nvidia, Walmart Results in Focus for Wall Street Cues

On Friday, the Dow Jones Industrial Average fell 1.1%, while the S&P 500 dropped 1.2% and the Nasdaq Composite lost roughly 1.5% as investors reacted to rising bond yields and oil prices.

Despite the selloff, the S&P 500 still notched its seventh straight weekly gain, while the Nasdaq also finished the week higher. Both benchmarks had hit record highs last week.

Treasury yields remained elevated after hotter-than-expected U.S. inflation data reinforced expectations that the Federal Reserve may keep interest rates higher for longer.

Investors this week will focus squarely on Nvidia’s earnings on Wednesday for clues on the durability of the artificial intelligence-driven rally that has propelled megacap technology shares and broader equity indexes higher this year.

Retail giant Walmart is due to report on Thursday, with traders watching for signs that elevated fuel costs are beginning to pressure consumer spending.