S&P, Nasdaq, and Dow futures start mildly ahead of the week, Wall Street eyes Nvidia earnings and post-shutdown economic data
After a volatile week that saw broad market swings, futures reflect cautious optimism amid ongoing AI stock volatility and uncertainty around the Fed’s policy path.
- Dow Jones futures fell about -0.4%, signaling a cautious mood in the industrial and defensive sectors.
- Nasdaq 100 futures rose 0.52% as confidence rose in technology and artificial intelligence stocks, key sectors affected by Nvidia’s future results.
- S&P 500 futures edged up 0.27%; This reflects investor interest and confusion as markets weigh mixed signals.
The previous Friday’s session capped off a tumultuous week that saw the S&P 500 close with a marginal loss of 0.05%, the Nasdaq post a slight gain of 0.13%, and the Dow fall 0.65%, driven by healthcare and consumer staples indexes. Technology stocks rebounded slightly, with Nvidia and Palantir gaining more than 1%, as investors await Nvidia’s big earnings report that could set the tone for the AI industry and the broader market.
Major catalysts of the week
- November 19 Nvidia Earnings: Nvidia is expected to report stellar Q3 financial results after market close on Wednesday; Analysts predict revenue will be around $54.9 billion, up 56.4% from the previous year, and earnings per share will be around $1.25.
- Federal Reserve October Meeting Minutes: Investors are awaiting the release of minutes from the Fed’s October meeting of policymakers, scheduled this week, which will provide insight into rate-setting discussions, inflation concerns and the overall monetary policy outlook. Recent hawkish comments by Fed officials have softened expectations for a rate cut in December, contributing to market volatility.
- Post-Shutdown Economic Data Resume: Following the longest government shutdown in the United States, critical economic data continues to be released this week, including the delayed September employment report, the Empire State Manufacturing Index, housing starts and inflation metrics. However, there are concerns about data quality due to gaps in data collection during the shutdown, possibly resulting in increased volatility and complexity in market interpretation.
While technology and AI stocks are showing a temporary rebound in futures, defensive equity sectors such as healthcare and food staples are underperforming due to concerns about inflation and interest rate hikes. The market is digesting a series of mixed signals as lagging economic readings and upcoming corporate results add uncertainty to near-term forecasts. This data is accurate as of the date of writing, has not since been updated and is subject to change.
FAQ
Q: How important is Nvidia’s earnings report to the market?
A: Given Nvidia’s leadership in AI semiconductors, its earnings often set the tone for tech stocks and influence broader market sentiment.
Q: Why are futures mixed week ahead?
A: Market participants are weighing the technology sector’s strong prospects in the face of uncertainty regarding Fed policy and delayed economic data, resulting in cautious and volatile movements in futures.
Question: What to expect from Federal Reserve minutes?
A: The minutes will reveal discussions on inflation, the labor market and interest rate guidance and clarify the stance behind the Fed’s recent hawkish communication.
Q: How might delayed economic data affect markets?
A: Delayed data creates uncertainty and makes investors cautious until major reports provide more definitive signals about the economic health and direction of Fed policy.
