United States stock futures traded modestly higher on Monday night (Tuesday AEDT) after a renewed slump in technology shares pulled Wall Street lower in the previous session, with traders bracing for Nvidia’s earnings report and long-delayed labour market data later this week.
By 10:40 am AEDT (11:40 pm GMT), Dow and S&P 500 futures were each up 0.1%, while Nasdaq 100 futures gained 0.2%.
All three major U.S. indices finished in negative territory on Monday. The Dow Jones Industrial Average shed 1.2%, the S&P 500 slipped 0.9% and the Nasdaq Composite lost 0.8%.
Nvidia fell around 2% ahead of its third-quarter results, due after Wednesday’s close. The chipmaker has been central to the debate over the sustainability of this year’s AI-fuelled rally, with investors increasingly concerned about narrow market breadth, stretched tech valuations, rising Big Tech debt issuance and the rapid depreciation cycle for AI hardware.
Beyond Nvidia, markets will scrutinise data releases that could influence expectations for upcoming Federal Reserve decisions.
Rate-cut bets have eased notably, with Fed funds futures pricing a 44.9% chance of a reduction at the December meeting - sharply lower than the more than 90% probability seen a month ago, according to the CME Group FedWatch Tool.
The Federal Reserve’s October meeting minutes are due Wednesday, followed on Thursday by the September nonfarm payrolls report - the first major economic release since the end of the U.S. government shutdown.
Earnings from major consumer names, including Walmart, Home Depot and Target, will also arrive this week, offering fresh insight into household spending trends as the holiday shopping season begins.
