U.S. Stock Futures Rise as Investors Await Nvidia’s Earnings Report

U.S. stock futures moved higher on Monday, signaling a modest rebound from last week’s losses. Investors are closely watching Nvidia’s (NASDAQ: NVDA) highly anticipated earnings report, scheduled for release after the market closes on Wednesday.

Market Overview (as of 05:30 ET / 10:30 GMT):

• Dow futures rose 294 points (+0.7%)
• S&P 500 futures gained 32 points (+0.5%)
• Nasdaq 100 futures climbed 91 points (+0.4%)

Key Market Drivers:

1. Wall Street’s Weekly Decline and Economic Concerns

• U.S. markets ended last week lower, weighed down by a sharp decline in business activity, which hit a 17-month low.
• Consumer sentiment also dropped to a 15-month low, reflecting worries over Trump administration policies, including trade tariffs and their impact on household spending.
• Inflation expectations surged, intensifying concerns over the Federal Reserve’s next monetary policy move.

2. Nvidia’s Earnings Report in Focus

• Nvidia has been at the center of the AI-driven stock market rally, with its shares soaring over 550% in the past two years.
• Now the world’s second-most valuable company, Nvidia’s Q4 earnings report is expected to provide insight into the AI sector’s sustainability and the semiconductor industry’s demand trends.
• A strong report could further boost market confidence, while any signs of slowing growth could trigger a market pullback.

3. U.S. Inflation Data and Fed Policy Implications

• Traders are looking ahead to Friday’s release of the Personal Consumption Expenditures (PCE) Price Index, a key inflation gauge closely watched by the Federal Reserve.
• A higher-than-expected reading could reinforce concerns that the Fed may need to delay or slow down interest rate cuts.

4. U.S. Budget Talks & Political Developments

• House Republicans are pushing forward with a budget bill vote this week, as part of efforts to define fiscal priorities ahead of the November elections.
• Investors will be watching how policy decisions could impact economic growth, corporate earnings, and financial markets.

International Focus: German Election Results

• Germany’s conservative Christian Democratic Union (CDU) and its Bavarian partner secured the most votes in Sunday’s crucial election.
• However, uncertainty remains over coalition formation, especially as the far-right Alternative for Germany (AfD) party gained significant support.
• Friedrich Merz, the likely next German chancellor, will need to navigate coalition talks amid economic stagnation and rising geopolitical concerns following the Trump administration’s negotiations with Russia on Ukraine.

Market Outlook

• Nvidia’s earnings will be a major catalyst for stock movements this week, particularly in the tech sector.
• U.S. inflation data could shape the Federal Reserve’s policy trajectory, influencing investor sentiment.
• Political uncertainties in the U.S. and Europe will continue to add to market volatility.