New York City – Stock futures took a slight dip on Monday following a decline in technology stocks that put pressure on the S&P 500 and Nasdaq Composite, despite the Dow Jones Industrial Average closing at a new record high. Futures linked to the Dow Jones slipped by 0.15%, while S&P 500 futures fell by 0.2% and Nasdaq 100 futures retreated by 0.28%. The Dow managed to hit a new intraday high before retracting, but still ended the day with a fresh record close.
Investors are closely monitoring the upcoming earnings report from leading artificial intelligence beneficiary Nvidia, scheduled for Wednesday. Nvidia’s shares closed over 2% lower on Monday, prompting speculation on the health of the AI trade. The semiconductor company has become a significant indicator for tech stocks and AI sector overall, with its second-quarter results anticipated to gauge the overall market sentiment.
After a turbulent start to the month, stocks are seeking stability amidst growing optimism among investors, spurred by Federal Reserve Chair Jerome Powell hinting at potential interest rate cuts in the near future. Traders are anticipating a rate cut at the central bank’s upcoming policy meeting on September 17-18, with predictions pointing towards a possible 25 basis points reduction.
Allianz chief economic advisor Mohamed El-Erian discussed the potential impact of Fed rate cuts on the market, highlighting uncertainties surrounding the timing and extent of the reductions. Meanwhile, investors are eager for the quarterly earnings report from Nordstrom, expected after the closing bell on Tuesday, to provide insights into consumer trends and market performance.
Overall, the market landscape is evolving, with various factors influencing investor confidence and market direction. As traders navigate through volatility and shifting dynamics, the focus remains on key indicators and corporate earnings reports to assess the broader economic landscape and investment opportunities.