Summary: U.S. stock index futures showed little movement on Monday afternoon as buying momentum in technology stocks paused. The Nasdaq was expected to reach historical highs with the upcoming earnings report from Nvidia. Concerns about interest rates and inflation persisted, with Federal Reserve officials highlighting the need for confidence in inflation data before considering rate cuts. Nvidia’s earnings report was highly anticipated as the company is a key player in the artificial intelligence industry and seen as a bellwether for the tech sector. Tech stocks, including Nvidia, Apple, Microsoft, and Alphabet, saw gains ahead of Nvidia’s earnings, pushing the market to a record close on Monday.
The Nasdaq stabilized at 5,331.0 points, the Dow Jones Industrial Average fell 0.1% to 18,748.50 points, and the S&P 500 fell 0.1% to 39,923.0 points. Nvidia rose 2.5%, nearing an all-time high, while peer companies like Advanced Micro Devices Inc and Intel Corporation also saw gains. Tech heavyweights Apple, Microsoft, and Alphabet reported gains between 0.4% and 1.3%.
Federal Reserve officials were expected to provide more signals on interest rates, with minutes from the latest meeting and speeches scheduled for the week. Despite weaker consumer inflation readings in April, officials emphasized the need for confidence in inflation data before considering rate cuts. The central bank was potentially considering rate cuts in September, pending inflation trends.
Overall, the stock market remained cautious amid uncertainty surrounding interest rates and inflation, with technology stocks showing strength ahead of Nvidia’s earnings report. The tech sector’s performance, particularly Nvidia’s results, would likely set the tone for market movements in the coming days. Fed officials’ comments and upcoming meetings were closely monitored for signals on the future direction of interest rates and monetary policy.
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