U.S. stock futures steadied Sunday evening, pausing after Wall Street’s sharp rally late last week on signs the Federal Reserve could cut rates as early as September.
S&P 500 futures held at 6,483.25 points, while Nasdaq 100 futures traded flat at 23,572.0 points. The Dow Jones futures hovered near 45,711.0 points as investors awaited more clarity on economic policy and corporate earnings.
Speaking at the Jackson Hole Symposium, Fed Chair Jerome Powell struck a dovish tone, pointing to softening labor conditions as a potential trigger for easing. However, he emphasized that no decision was final, with inflation risks and uncertainty from President Donald Trump’s trade tariffs still weighing on the outlook.
Wall Street reacted swiftly. The S&P 500 jumped 1.5% to 6,466.91 points Friday, while the Nasdaq Composite gained 1.9% to 21,496. The Dow Jones Industrial Average also climbed 1.9% to a record 45,631.74 points.
CME FedWatch data showed traders now assign an 82.9% probability of a September 25-basis-point cut, up from 73.1% just a day earlier.
Nvidia Earnings in Spotlight
This week, attention turns to Nvidia Corporation (NASDAQ: NVDA), whose earnings on Wednesday are expected to serve as a litmus test for the artificial intelligence boom. Nvidia has become a bellwether for AI investment, with demand for its chips driving much of the sector’s gains in recent quarters.
Investors will be watching closely for updates on the company’s China sales, which have faced headwinds from U.S. export restrictions and tighter Chinese oversight. Reports last week indicated Nvidia had halted production of its China-specific H20 chip.
The stakes are high. Following a recent rout in technology shares, Wall Street is questioning whether AI-driven growth can sustain momentum into year-end. Nvidia’s results may set the tone for the broader tech sector.
Other corporate updates are also on the horizon:
- Dell Technologies (NYSE: DELL)
- Dick’s Sporting Goods (NYSE: DKS)
- Best Buy (NYSE: BBY)
- Dollar General (NYSE: DG)
- Abercrombie & Fitch (NYSE: ANF)
Economic Data to Watch
Beyond earnings, macroeconomic data will play a crucial role this week. Investors will parse second-quarter U.S. GDP figures, with preliminary July numbers showing resilient growth.
Market sentiment, lifted by Powell’s remarks, now hinges on two questions: whether the Fed follows through on a September cut and whether corporate earnings—particularly from Nvidia—can reassure investors about growth prospects in both AI and the broader economy.