Market in Recovery Effort: Nvidia Report Expected

ABD stock futures remained stable on an evening when Wall Street continued its recovery efforts following a technology-driven downturn. Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures are trading around key levels.

These modest movements come after a challenging session for the stock market the previous day. The Dow Jones index dropped more than 550 points, or 1.2%. Similarly, the S&P 500 and Nasdaq Composite Index experienced losses close to 1%. Selling pressure in major technology companies triggered this decline.

Nvidia lost about 2% ahead of its closely monitored third-quarter earnings report, expected on Wednesday. As investors reassess the sustainability of this year’s AI-driven market rally, the significance of the company’s report increases. Inflated valuations, narrowing market breadth, accelerating AI-related losses, and rising debts of large tech firms set the stage for this discussion.

In addition to Nvidia, investors will also be monitoring a series of important data points that could shape the Federal Reserve's next steps. The likelihood of interest rate cuts has significantly decreased; Federal Reserve fund futures are currently pricing in about a 40% chance of a cut. This rate was above 90% a month ago. The minutes from the Federal Reserve’s October meeting will be released on Wednesday. Additionally, the delayed September jobs report due to the government shutdown will be published on Thursday, marking the first significant economic data.

Among the monthly earnings reports, the results from major retailers Walmart, Home Depot, and Target scheduled for this week will provide insights into consumer demand strength ahead of the holiday season.