U.S. stock futures edged lower on Monday as investor optimism about a possible Federal Reserve rate cut cooled. The S&P 500 futures slipped 0.3% at 8:15 a.m., after the index recorded its strongest day since May on Friday.
Attention is now shifting to Nvidia’s earnings on Wednesday, which could be a major test for both technology stocks and overall market sentiment.
Fed Outlook Unclear
Friday’s market rally followed comments from Fed Chair Jerome Powell at Jackson Hole, hinting the central bank may be ready to ease policy in September. Traders currently see an 84% chance of a rate cut next month.
But remarks from other Fed officials, including Austan Goolsbee and Alberto Musalem, revealed divisions within the central bank, raising doubts about when cuts will happen.
Market Movers
Technology shares traded lower in premarket activity. Nvidia dipped 0.1%, while Alphabet, Microsoft, Apple, Meta, Tesla, and Amazon also slipped.
Intel gained after the U.S. government agreed to buy a 10% stake in the company. PDD Holdings rose 6% following strong earnings, while Verint Systems jumped 12% on reports of a potential takeover by Thoma Bravo.
Furniture stocks fell after President Trump launched a tariff investigation into imports. Wayfair slid 6%, RH dropped 7%, while Ethan Allen rose 3%.
Dollar, Bonds, and Commodities
The U.S. dollar strengthened, and Treasury yields climbed, steepening the yield curve. Oil prices also advanced, gaining about 0.6%.
What’s Next
Markets will closely watch Nvidia’s results this week, given its heavy weighting in the S&P 500 and its key role in AI development. Upcoming U.S. data on durable goods, consumer confidence, and personal spending will also provide signals on the economy and inflation.
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