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Futures Edge Lower After Powell-Driven Rally
U.S. stock index futures fell modestly on Monday, pausing after a strong rally last week driven by dovish signals from Federal Reserve Chair Jerome Powell. As of 06:17 ET (10:17 GMT):
- S&P 500 Futures were down 0.24% at 6,451.25
- Nasdaq 100 Futures slipped 0.32% to 23,424
- Dow Jones Futures fell 0.22% to 45,532.0
On Friday, Powell’s comments at the Jackson Hole symposium helped Wall Street reverse much of its recent weakness. The S&P 500 rose 1.5% to 6,466.91, the NASDAQ Composite gained 1.9% to 21,496, and the Dow Jones Industrial Average jumped 1.9% to a record 45,631.74. Small caps surged, with the Russell 2000 up 3.9%.
Powell Signals Possible September Rate Cut
Powell acknowledged mounting risks to the U.S. labor market and suggested the Fed may cut interest rates in September. However, he warned that the decision was not guaranteed, citing persistent inflation pressures and uncertainty over President Donald Trump’s trade tariffs.
Market expectations shifted strongly toward a September move. Fed funds futures now price in an 89% chance of a 25bps cut, with a 49% chance of an additional cut in December.
Nvidia Earnings Take Center Stage
Investor focus this week is squarely on Nvidia (NASDAQ: NVDA), with second-quarter earnings due Wednesday after the U.S. market close. Nvidia is widely viewed as a bellwether for artificial intelligence demand and has been a key driver of 2025’s market rally.
Key points investors will watch:
- Whether Nvidia delivers another strong quarter of growth.
- The extent of China sales weakness, after U.S. export curbs and increased scrutiny forced Nvidia to halt production of its China-specific H20 chip last week.
- Guidance on AI demand amid growing questions about how sustainable AI-driven profits will be.
Nvidia’s results will follow an extended rout in tech shares, which raised doubts about the durability of the AI boom.
Other Corporate Earnings on Tap
Beyond Nvidia, several other major U.S. companies are reporting this week, including Dell Technologies (NYSE: DELL), Dick’s Sporting Goods (NYSE: DKS), Best Buy (NYSE: BBY), Dollar General (NYSE: DG), and Abercrombie & Fitch (NYSE: ANF).
Economic Data Ahead
Traders will also look to second-quarter U.S. GDP data due later this week. Preliminary figures released in late July showed robust growth, and investors will be watching closely to see whether revisions alter the outlook for Fed policy.
