U.S. stock index futures were relatively flat on Monday as technology stocks, particularly Nvidia, saw widespread selling. Wall Street indices were impacted by losses in chip manufacturing stocks, with Nvidia falling 6.7% and other companies like Broadcom, Taiwan Semiconductor Manufacturing, and Qualcomm also seeing declines. Micron Technology fell ahead of its quarterly results release. Technology stocks led to a mixed close on Wall Street, with the S&P 500 and Nasdaq falling while the Dow Jones rose in other sectors.
Investors were cautious ahead of this week’s inflation reading, which is expected to provide insight into interest rate cuts. The PCE inflation data, due on Friday, is anticipated to show a slight cooling in inflation but remain above the Federal Reserve’s target range. Persistent inflation could delay potential interest rate cuts by the Federal Reserve, impacting stock markets. Expectations of rate cuts have fluctuated on Wall Street in recent months.
In aftermarket trading, Birkenstock and SolarEdge Technologies saw significant declines. Birkenstock fell 5% after a major shareholder announced plans to sell 14 million shares in a public offering. SolarEdge Technologies dropped 13.4% after revealing intentions to offer $300 million in new debt. Investors are closely watching these developments in the aftermarket.
Overall, the focus on key economic data, particularly inflation readings, has influenced investor sentiment and trading patterns on Wall Street. Technology stocks, chip manufacturing companies, and spare parts markets like footwear and solar energy have experienced significant fluctuations. The anticipation of interest rate cuts by the Federal Reserve remains a key factor driving market behavior, and investors will continue to monitor upcoming economic data releases for further guidance on market trends.
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